Minnesota is now offering rebates for electric vehicle purchases. Here's what you need to know.
MINNEAPOLIS — Starting Wednesday, Minnesota is rolling out a new state program offering rebates of up to $2,500 for the purchase of an electric vehicle.
Applications will be reviewed on a first-come, first-served basis and there are no income limits so anybody can apply. The discounts can go towards buying to both new and used cars purchased after May 25, 2023. The program was part the two-year, $72 billion state budget approved in the state legislature last year, earmarking $5 million for the rebates.
Here are some other criteria to consider:
- Eligible new vehicles can't cost more than $55,000 MSRP, excluding taxes and fees.
- Used vehicles must cost $25,000 or less.
- Cars must be titled in Minnesota.
- The rebate shrinks for used cars. Drivers can get up to $600 for those purchases.
Applications launched at 10 a.m. Wednesday. Those interested must include their driver's license information, electric utility bill at the time of the EV purchase, and the purchase agreement or lease of the car.
Businesses and local governments with fleets can apply, too, but will receive no more than one rebate per fiscal year. But two drivers in the same household can apply for rebates individually, so long as there isn't more than one per person living there that owns the vehicle.
There's also separate federal tax credits available of up to $7,500 for the purchase of clean vehicles, including electric ones. The state money is available until the summer of 2027 or when the funds are exhausted.
Other rebate programs: Electric bikes and air source heat pumps
There are separate rebates for electric bicycles and air source heat pumps, a heating and cooling unit all in one that can be more energy efficient and cut down on homeowners' carbon footprint.
For e-bikes, the discount will be 75% of their value or $1,500, whichever is less. Higher earners can still qualify, but the value of their rebate may be smaller than $1,500. There is a scale that decreases how much of the bike cost will be covered depending on how much money a person makes.
The law requires 40% of the $4,000,000 set aside for the program to be reserved for taxpayers making less than $78,000 when married and other filers who make $41,000 or less.
A spokesman for the Department of Revenue in an email said individuals can apply starting this summer; the state agency is in the process of building out the system in order to do that.
For updates, people can sign up for emails here.
Minnesotans will be eligible for a rebate of up to $4,000 to go towards the purchase or installation of a heat pump.
The Department of Commerce administering that rebate program says it does not have a timeline set for when the payments will be available because eligibility hinges on participation in a concurrent federal rebate program through the U.S. Department of Energy.