Minnesota kicks off EV rebate programme
To qualify for the programme, the new or used electric (or plug-in) vehicle must have been purchased after 25 May 2023. If new, the car must have cost less than 55,000 dollars, while used vehicles must have a purchase price of $25,000 or less. In both cases, the EV must be titled in Minnesota.
There is no income eligibility component, meaning everyone can apply for the subsidies. Businesses, non-profits or government entities can also apply for the grants but will receive a maximum of one EV rebate per fiscal year (1 July – 30 June). The state government explains that the rebate is not a tax credit and will be paid out in full.
The Minnesota Department of Commerce emphasises that state funds are limited and that the grants will be issued “on a first-come, first-served basis.” Rebates can be issued until the funding has been fully distributed or until 30 June 2027. The programme is part of the two-year, 72 billion-dollar state budget approved last year. In total, the state of Minnesota has marked 5 million dollars for the rebates.
The state rebate programme is on top of the federal tax credit. In that case, US residents can receive up to 7,500 dollars for purchasing an electric car. For the vehicle to be eligible, it must be assembled in the US and the majority of battery components must also be manufactured or assembled in North America. The percentage rises successively to 100 per cent by 2029 by ten percentage points per year. For 2024 and 2025, the applicable percentage is 60 per cent.