Minnesota takes EV incentives to $10,000 with rebate program

Minnesota is taking a new step to increase electric vehicle (EV) sales with a new rebate program that will increase the tax incentives up to $10,000 for new EV buyers.

The Department of Commerce on Monday announced the Electric Vehicle (EV) Rebate Program to provide an extra rebate of up to $2,500 on new electric vehicles, owners, and lessees. Used vehicles on the other hand can rebate up to $600.

Minnesota’s rebate program will work alongside the U.S. Federal tax credit which offers $7,500 on new EVs. This will lead to a sum of $10,000 for each EV purchased in the state.

You should know that the Federal tax credit is only available for a handful of car models and not all EVs are eligible for the federal incentives. Meanwhile, the Minnesota rebate program will cover all of the electric vehicles.

The program will open at 10 a.m. Wednesday, February 7, 2024, and rebate applications will be reviewed on a “first-come, first-served” basis.

These rebate applications will be reviewed separately/individually and there will be no instant payments for selected applicants.

Requirements:

There are a few requirements that applicants need to know including:

1. Electric vehicle vehicles should be new or used
2. It could be an electric or plug-in hybrid
3. Vehicles must be purchased or leased on or after May 25, 2023
4. Vehicles must be registered in Minnesota
5. It must have a base MRSP of $55,000 or below excluding taxes and fees.
6. Used vehicles must have a purchase price of $25,000 or below.

How to apply:

The electric vehicle rebate applications must include three documents driver’s license, electric utility bill, and purchase, or lease agreement. Applicants can also submit other documentation to prove EV ownership and purchase price.

You can apply for the program via the application link which will appear at mn.gov official website on February 7, 2024. Check the details and how to apply instructions here.