Minnesota is the newest state to offer government rebates for electric vehicle (EV) or hybrid purchases, with Minnesota Commerce Department (MCD) opening applications for the rebates Wednesday.

The EV program results from a statute created through 2023 HB 2310. It rebates new EV or hybrid purchases up to $2,500 and used purchases up to $600.

The vehicle must be purchased or leased on or after May 25, 2023 and have a base MSRP of $55,000 or less for new vehicles and an MSRP of $25,000 for used vehicles.

Minnesota residents, businesses, nonprofits and government entities can apply for rebates, the MCD website says. Fleet operators are allowed one EV rebate per fiscal year.

Rebates will be processed on a first come, first serve basis until funding has been fully distributed or June 30, 2027.

Residents can also apply for federal tax rebates, which include up to $7,500 for new EVs or hybrids purchased in or after 2023 and up to $4,000 for used EVs.

The 2023 Oregon Department of Energy reported the state saw a significant boost in EV sales after starting its own EV rebate program, which is now on hold due to funds running out, according to the Oregon Capital Chronicle.

EV sales in the state more than doubled to 70,000 vehicles following the start of the rebate program in 2021, the Oregon report said. It said there were 38,000 EVs when the program started in 2021.

According to a Kelly Bluebook article, multiple states offer government rebate programs, including California, Connecticut, Delaware, Illinois, Maine, Massachusetts, Pennsylvania and Rhode Island.

California offers multiple state and local government rebates, including the Clean Vehicle Rebate Program, which rebates to $7,500 for new and leased electric and hybrid vehicles. The amount of the rebate is based on income.

Connecticut offers a hydrogen and EV rebate program for EVs and hybrids up to $7,500 for new and $2,500 for used. The amount varies depending on the type of vehicle and purchase or lease cost.

The Delaware Clean Transportation Incentive Program offers residents rebates of $2,500 for a new or leased EV and $1,000 for a new or leased hybrid.

The Illinois Environmental Protection Agency offers rebates between $1,000 and $4,000 for a purchased or leased EV. Options lower if a purchase happens after June 30, 2026.

Maine residents can receive a rebate of up to $7,500 for purchased or leased EVs and up to $3,500 for hybrids. Lower-income households can receive up to $2,500 for used EVs.

Massachusetts provides up to $5,000 in rebates for purchased or leased EVs. Hybrid rebates are for up to $1,500.
Pennsylvania Department of Environment Protection provides rebates up to $2,000 for new or pre-owned electric EVs and hybrids.

Rhode Island residents can apply for up to $1,500 in rebates for leased or new EVs or plug-in hybrids.

The Kelly Blue Book article says multiple states also offer tax incentives for the purchase of EVs or hybrids, and residents in nearly every state can take advantage of incentive programs either through the government or programs provided by private and nonprofit groups such as energy associations. View Kelly Blue Book’s comprehensive list here.

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