Minnesota Unveils Lucrative EV Rebate Program, Offering Up to $10,000

Minnesota's new EV rebate program sparks a green transition with enticing financial perks.

Tuesday, February 6, 2024 1:59 PM UTC

Customers in Minnesota who buy or rent new electric or hybrid cars are eligible for a $2,500 state refund. The discount for old electric cars is up to $600. The vehicles must be titled in Minnesota and have been bought, leased, or acquired on or after May 25, 2023, as per Star Tribune.

To be eligible for the state program, new cars must be purchased for a base manufacturer's suggested retail price of $55,000 or less, before taxes and fees, and used cars must be purchased for no more than $25,000.

Customers can apply for the refund on the Minnesota Department of Commerce's webpage beginning at 10:00 a.m. on Wednesday, February 7.

Federal tax credits can be paired with the state rebate when purchasing new or old electric vehicles. The federal program offers up to $7,500 for new EV purchases and $4,000 for old car purchases. Additionally, a credit of up to $1,000, or 30% of the entire cost of installing a home charger, is permitted under federal tax law.

According to the Commerce Department, state rebate applications for new and used electric and hybrid vehicles would be evaluated on a first-come, first-served basis.

The Commerce Department's website states that each application would be reviewed separately "to ensure program integrity. This means payments will not happen immediately," but it doesn't explain how long it will take to receive a refund check and instead recommends "patience."

The state has budgeted $10.6 million for the 2024 fiscal year and $5.2 million for the 2025 fiscal year to cover the rebates, according to the Commerce Department. The rebates will be given out by June 30, 2027, whichever comes first due to funding constraints.

After being approved by the Legislature and Governor Tim Walz last year, the program took months to develop, but officials are certain that the application process is now prime time.

The 2024 EV Tax Credit: A Small Pool of Eligible EVs to Maximize Big Rebates

In 2024, the number of EVs that qualified for the EV tax credit was reduced. Experts, however, predict growth. Here is the most recent list.

It is now simpler than ever to take advantage of the $7,500 federal tax credit for buying electric vehicles. However, let's face the biggest issue: not many EVs currently qualify for either the full or half credit.

Even if the savings are significant, they are only applicable to electric cars that fulfill specific criteria, most of which involve procuring and producing battery components.

Yes, when the regulations tightened in 2024, the list of EVs that qualified decreased significantly. However, specialists are upbeat.

"I do expect that this [list] will increase over time," according to Kate Whitefoot, an associate professor at Carnegie Mellon University teaching public policy and engineering. That's because automakers will need time to set up the domestic battery and mineral supply chains necessary to meet the relatively new tax credit requirements.

According to some experts, you shouldn't wait for the list to get longer. There's no need to wait for more cars to qualify if you want an EV right now, according to Peter Glenn, co-founder, and CEO of the EV financing platform EV Life. He remarked, "The electric vehicle is like a savings account on wheels," and the current market offers consumers significant financial incentives.

Every EV Now Eligible for the Federal Tax Credit

The list of EVs that qualified decreased in 2024 because the qualifying requirements tightened, as per CNet. EVs must meet a few crucial requirements set forth by federal regulations to be eligible for the credit. While some are based on standard income and price ranges, others are related to the locations of EV battery manufacturing facilities and the sources of their raw materials.