New York adds $30 million to EV subsidy fund
New York Governor Andrew M. Cuomo announced that an additional $30 million is now available through the New York State ‘Drive Clean Rebate’ program to assist more consumers to lease or purchase a battery-electric car or plug-in hybrid electric vehicle.
The strengthening of the subsidy pot comes at an important time, as New York is preparing to transition to a fossil-fuel-free transport economy. It was only recently announced that the US American state would be banning the sale of new internal combustion vehicles for 2035, mirroring the initiative from California. Additionally, just last month, New York’s Governor Cuomo launched a clean transportation competition to seek alternative fuel options for public transport systems.
Charging stations have also been a subject in the state of New York and was addressed early last year. Now that the two major public hurdles are out of the way, it is time to look at private vehicle usage.
So far, more than 37,000 EV rebate applications have been granted under the program totalling more than $54 million. The program is now being adapted so that more rebates can be distributed throughout the market. For this reason, some rebate ranges are being lowered to allow more New Yorkers to take advantage of the incentives.
Adjustments for the programme are designed to bring in more drivers to switch to an emissions-free option. EVs with a range of 200 miles or more are to receive a subsidy of $2,000. With a range between 40-199 miles, vehicles will be eligible for $1,000. For vehicles with an electric range of less than 40 miles, $500 will be provided. Finally, a price measure is also included to prevent the grants being used for luxury cars; For electrified vehicles with an MSRP over $42,000, $500 will be provided regardless of the car’s range.
The program incentive levels for consumers will change starting 30 June 2021. These changes include updated rebate levels to incentivize EVs with longer all-electric ranges and EVs with a base MSRP of less than $42,000. There are an increasing number and variety of EV models available, with more than 50 models currently available in New York, and of those models, 15 have a range of more than 200 miles and are eligible for the rebate. Eligible vehicles under the Drive Clean Rebate include all-electric cars, plug-in hybrid electric cars, and fuel cell electric cars.
Governor Cuomo explains the adjustment as follows: “Reducing emissions from vehicles will continue to enhance the quality of life in communities across New York by improving air quality, especially in disadvantaged communities that have been disproportionately impacted by pollution and climate change.” Lieutenant Governor Kathy Hochul added additional context to the economic fallout of the pandemic on New York’s population, and why it is important to widen incentive levels for the initiative: “As we focus on our economic recovery for the post-pandemic future, we want to help New Yorkers make the switch to an electric vehicle, resulting in less pollution and a cleaner and greener New York.”
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