Lucrative Incentives for Used Electric Cars

 
Vermont's Lucrative Incentives for Used Electric Cars

From federal to state and utility company initiatives, Vermont is leading the charge in offering generous support for sustainable driving.

Vermont continues to solidify its position as a pioneer of sustainability in the United States, now by providing a comprehensive array of incentives for buyers of used electric cars. With a combination of federal, state, and utility company programs, the state is making the switch to electric vehicles (EVs) more enticing than ever before. Let's explore the various incentives available for used electric vehicles in Vermont, empowering residents to adopt eco-friendly transportation options while enjoying significant cost savings.

Federal Incentives:

At the federal level, buyers of used electric vehicles can benefit from the Electric Vehicle Federal Tax Credit. This credit, which can amount to thousands of dollars depending on the vehicle's battery capacity, effectively reduces the overall cost of purchasing a used EV.

As of January 1, 2024, federal tax credits are available for all-electric and plug-in hybrid electric vehicles under the Inflation Reduction Act (IRA). You can receive a tax credit of 30% of the sales price, up to a maximum of $4,000.

To qualify for this federal tax credit:

  • Used EVs must have a sale price of $25,000 or less.
  • Purchasers must have an adjusted gross income of $150,000 for joint filers or $75,000 or less for individual filers.
  • The vehicle's model year must be at least two years earlier than the year of purchase.
  • Used EVs must be purchased through a licensed new or used car dealership to qualify.
Participating used car EV dealers can apply federal credits at the point of sale, benefiting buyers who may not have enough tax liability to fully utilize the credit.  Always check the IRS site for the most up-to-date information.

State Incentives:

Vermont offers its own incentives to encourage the adoption of used electric cars. The state provides rebates for used electric vehicle purchases, putting money back into buyers' pockets. The MileageSmart incentive assists in financing your next used EV purchase, reducing transportation costs and resulting in lower monthly payments.

To qualify for the MileageSmart program:

  • You must be a Vermont resident with a valid Vermont driver's license.
  • You must not be claimed as a dependent by someone else.
  • You must be 18 years of age or older.
  • The purchased vehicle must qualify under the program.
  • Your income must be at or below 80% of the state median income (based on AGI).
For detailed program information and the most up0-to-date information, visit the MileageSmart website.

Power Company Incentives:

Vermont's power companies play a vital role in promoting electrification. Many utility providers offer special incentives for used electric vehicle owners, including monthly rebates or free home charging stations. These initiatives not only reduce the cost of owning a used EV but also contribute to a more efficient and sustainable grid.

  • As we write this article incentives range from up to $3,000 in value from Burlington Electric to as much as $3,200 from Green Mountain Power. Visit Drive Electric's website or contact your local utility company for the latest information on incentives as they do change from time to time.

Conclusion:

Vermont's commitment to electric transportation is evident in its comprehensive suite of incentives for used electric car buyers. From federal tax credits to state perks and utility incentives, Vermonters have numerous opportunities to embrace sustainable driving while enjoying significant cost savings.

Let our team at Upper Valley Auto Mart in White River Junction help you with any questions you may have and be sure to check out our inventory of used cars for sale, including hybrid and used electric vehicles.