Used Electric Cars Incentives

 
Vermont Leads the Charge with Lucrative Incentives for Used Electric Cars.

From Federal, State and Utility Company Initiatives, Vermont Offers Generous Support for Sustainable Driving.

Vermont continues to position itself as a beacon of sustainability in the United States, this time by offering a comprehensive suite of incentives for used electric car buyers. With a blend of federal, state, and power company initiatives, the state is making it more attractive than ever to make the switch to electric vehicles (EVs). Let's delve into the various incentives on offer for used electric vehicles in Vermont, empowering Vermonters to embrace eco-friendly transportation options while saving money.

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, there are federal tax credits available for used all-electric and plug-in hybrid electric vehicles. Under the Inflation Reduction Act (IRA), you can get a tax credit of 30% of the sales price, up to a maximum of $4,000.   

The Requirements for this federal tax credit include:

Used EVs must have a sale price of $25,000 or less;
Purchaser 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 needs to be at least two (2) years earlier than the year of your purchase and; 
The used EVs must be purchased through a licensed new or used car dealership to qualify.  The dealer should provide you with the necessary paperwork to report the sale to the IRS that meets IRS regulations.

Participating used car EV dealers can pass through federal credits at the point-of-sale. This will be especially beneficial for used EV buyers who may not have enough of a tax liability to fully benefit from the credit. The IRS allows dealers to pass through the full amount of the credit to the consumer regardless of the buyer's tax liability.  More details are available on the IRS website.

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 the pockets of buyers.   The MileageSmart incentive helps you pay for your next used EV car, helping you cut your transportation costs which will result in a lower monthly used car payment over the same term. Not only can you get up to $5,000 towards the purchase you will save you money every month driving your used EV car in fuel costs.  

The requirements of this program include:

You must be a Vermont Resident and provide a valid Vermont Driver's License;
Must not be claimed as a dependent by someone else;
Must be 18 years of age or older;
Must purchase a qualifying vehicle under program;
Must be at or below 80% State Median Income (based on AGI). Income eligibility is listed on MileageSmarts income qualification chart.  For more in-depth details about the program, please go to MileageSmarts Website.

Vermont also offers a program called "Replace Your Ride," which motivates owners of older internal combustion engine vehicles (I.C.E.) to transition to cleaner transportation options by providing an incentive of up to $5,000 for scrapping their high-polluting vehicle.

Participants may apply their voucher towards the purchase or lease of a new or used plug in electric vehicle (PEV).

Power Company Incentives:

Vermont's power companies are key players in the state's push for electrification. Many utility providers offer special incentives for used electric vehicle owners, including monthly rebates or even free home charging stations. These initiatives not only make it less expensive to own a used EV Car but also contribute to a more efficient and sustainable grid in most cases.  Incentives range from up to $3000 in value from Burlington Electric to as much as $3200 from Green Mountain Power.  For more details on your local utilities offers, you can check Drive Electric's website or call your local utility company for the most up-to-date information.

Conclusion:
In Vermont, the legislature has determined that the future of transportation in Vermont will be electric, and the state's comprehensive suite of incentives for used electric car buyers is proof of its commitment to that vision. From federal tax credits to State perks and utility incentives, Vermonters have ample opportunities to embrace sustainable driving while enjoying significant cost savings. 

At Central Vermont Auto Mart in Montpelier, Vermont our team has assisted customers with taking advantage of many of the offerings available to make the ownership cost of a used EV car more affordable. Our used car electric vehicle inventory is always changing, but over the past few months we have carried EV's like the Ford Focus EV, Tesla Model 3 AWD, Nissan Leaf, Chevrolet Volt, Ford F-150 Lightning and additional used EV models.  If you are looking for a used electric vehicle in the Vermont area, please check out our inventory.  Who knows your next EV might be here waiting for you.