Minnesota lawmakers approved a $2,500 rebate for EVs to drastically cut the initial cost of an EV and promote the Minnesota market.
This is only one of several new refunds and tax breaks for carbon-free technologies in Minnesota approved by DFL legislators.
However, the cost of Minnesota’s EV program, $15.7 million, places it among the more expensive and visible programs. It has also gotten a lot of attention from both potential customers and Republican lawmakers who are upset about the program’s lack of income limits.
What Kinds of Vehicles Are Eligible?
The refund is $2,500 for an all-new electric vehicle, whether purchased or leased. It costs $600 for a used automobile.
A new EV is qualified to receive a refund if it has a manufacturer-suggested basic retail price (MSRP) of $55,000 or less. Taxes and fees are not included in the pricing. A used EV is qualified if it costs less than $25,000 new.
By far the most numerous EVs on roadways in Minnesota are the Model Y from Tesla and Model 3. In accordance with Kelley Blue Book, the newest Tesla automobiles have a base price of less than $55,000, while vehicle prices fluctuate frequently.
Electric automobiles that are plug-in hybrids are also eligible for the incentive.
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Who Qualifies for a Rebate?
Residents of Minnesota are qualified for the rebate, however so are businesses with a state mailing address, nonprofit entities, and towns and counties. Despite the federal tax credit, the Minnesota refund has no income limit.
These individuals and businesses, however, are ineligible if they have already earned a state tax credit or rebate for the purchase or leasing of an EV. In addition, the car must be certified in Minnesota.
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Source: MINNPOST