Search Federal and State Laws and Incentives

Hybrid Electric Vehicle (HEV) and Electric Vehicle (EV) Acquisition Requirements

The Vermont Department of Buildings and General Services (Department) must, to the extent possible, purchase or lease HEVs or EVs for state use. At least 50% of the vehicles purchased or leased annually must be HEVs or EVs. Beginning July 1, 2021, at least 75% of the vehicles purchased or leased annually must be HEVs or EVs. The Department must acquire the lowest-cost make and model that meets the State’s needs.

(Reference Vermont Statutes Title 29, Chapter 49, Section 903)

Zero Emission Vehicle (ZEV) Deployment Support

Vermont joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle (EV) charging stations and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

• Raising consumer awareness and interest in electric vehicle technology;
• Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
• Continuing and improving access to consumer purchase and non-financial incentives;
• Expanding public and private sector fleet adoption; and
• Supporting dealership efforts to increase ZEV sales.

For more information, see the ZEVs website.

Plug-In Electric Vehicle Credit - Vermont Electric Co-op (VEC)

VEC offers a $250 bill credit to members who purchase a new or pre-owned plug-in hybrid electric vehicle (PHEV) and a $500 bill credit to members who purchase a new or pre-owned all-electric vehicle (EV). Members who lease a PHEV are eligible for an annual bill credit of $50 for each year of the lease, and members who lease an EV are eligible for an annual bill credit of $100 for each year of the lease. For more information, including how to apply, see the VEC Energy Transformation Program website.

Electric Vehicle (EV) Rebates - Green Mountain Power (GMP)

GMP provides residential and business customers rebates of $1,500 for the purchase of a new all-electric vehicle, $1,000 for the purchase of a new plug-in hybrid electric vehicle, $750 for the purchase of used EVs, and $500 for the purchase of an electric motorcycle. Customers with qualifying low and moderate household incomes are eligible for an additional $1,000 rebate. EVs must have a manufacturer’s suggested retail price that is less than or equal to $70,000. For more information, see the GMP Electric Vehicles website.

Heavy-Duty Vehicle Emissions Reduction Grants

Through the Vermont Diesel Emissions Reduction Grants Program, the Vermont Department of Environmental Conservation (DEC) provides funding to local, state and regional agencies or departments, businesses, institutions, and nonprofit organizations for projects focused on reducing emissions from diesel engines and vehicles. Qualifying heavy-duty vehicles include buses and Class 5-8 trucks. Projects eligible for funding are as follows:

• Verified emission control technologies;
• Verified idle reduction technologies;
• Verified aerodynamic technologies and low rolling resistance tires;
• Certified engine replacements;
• Alternative fuel conversions; and
• Certified vehicle or equipment replacements.

All technologies and engines must be certified by the U.S. Environmental Protection Agency. Alternative fuels include, but are not limited to, natural gas, propane, and electricity. Cost share requirements vary by project. For more information, including application details, see the DEC Vermont Diesel Emissions Reduction Grants website.

Electric Vehicle (EV) Charging Station Credits - Vermont Electric Co-op (VEC)

VEC offers a bill credit of $500 per connector, up to $1,000, to VEC member businesses and public entities that install Level 2 EV charging stations or direct current fast charging (DCFC) stations after July 2, 2017. To qualify, the EV charging stations must be available for public use.

VEC also offers residential customers a $250 bill credit for the purchase of a Level 2 EV charging station. Members with eligible chargers may receive an additional $50 incentive for participating. For more information, including additional restrictions and how to apply, see the VEC Energy Transformation Program website.

Alternative Fueling Infrastructure Incentive

The Vermont State Infrastructure Bank (SIB) offers loan assistance to municipalities, regional development corporations, political subdivisions of the state, and private companies working for the state to finance public electric vehicle charging and natural gas fueling stations. 1% fixed loans up to $100,000 are available to municipalities, non-profits, and private sector borrowers. Other terms and conditions may apply. See the Vermont Economic Development Authority’s SIB website for more information, including how to apply.

Electric Vehicle (EV) Incentives - Burlington Electric Department (BED)

BED provides low- or no-interest loans for the purchase of a new EV. Eligible customers can also apply for a rebate of $2,300 towards the purchase of a new all-electric vehicle (EV) or $2,000 towards the purchase of a plug-in hybrid electric vehicle (PHEV). An additional $600 is available for moderate income customers buying an EV or $300 for a PHEV. Vehicles must have a manufacturer’s suggested retail price that is less than or equal to $60,000. Additional terms and conditions apply. For more information, including income eligibility, see the BED Electric Vehicles website.

Electric Vehicle (EV) Time-Of-Use (TOU) Rate and EV Charging Rebate - BED

Burlington Electric Department (BED) offers a TOU rate to residential customers who own an EV. To qualify, customers must install a WiFi enabled EV charging station.

BED also offers a rebate of up to $900 for the purchase and installation of a qualifying Wifi enabled EV charging stations for customers that have enrolled in BED’s Residential EV Rate. Eligible applicants must have purchased an EV charging station within 60 days of the acquisition of the EV.

For more information, see the BED EV Rate website.

Residential Electric Vehicle (EV) Charging Station Incentive - Green Mountain Power (GMP)

GMP residential customers are eligible for a free Level 2 EV charging station when they purchase a new or pre-owned plug-in electric vehicle. For more information about these incentives, see the GMP In-Home Level 2 EV Charger website.

Electric Vehicle (EV) Incentive

The Vermont Agency of Transportation provides financial incentives to low- and moderate-income residents for the purchase or lease of a new EV with a base manufacturer’s suggested retail price of $40,000 or less, on a first-come, first-served basis. Incentives are offered in the following amounts:

Incentives are limited to one per individual or married couple. Additional terms and conditions apply. For more information, including application and eligibility requirements, visit the Drive Electric Vermont website.

(Reference Act 55, 2019, Act 154, 2020, Act 55, 2021, and Act 184)

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) administers the High Fuel Efficiency Used-Vehicle Program, MileageSmart, which provides incentives of up to $5,000 to replace eligible vehicles with a pre-owned vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg).

VTrans also offers vouchers of up to $2,500 for the repair of vehicles that failed the on-board diagnostic (OBD) systems inspection. Eligible vehicles for replacement include those that have failed the OBD systems inspection or those that are more than 15 years old and have an EPA combined city/highway fuel economy of less than 25 mpg. Eligible vehicles for a repair voucher are those that have failed the OBD systems inspection, require repairs that are not under warranty, and will be able to pass the inspection once the repairs are made. For more information on the emissions repair program, visit the VTrans Statewide Vehicle Incentives Programs website. The emissions repair program must be operational by January 1, 2023.

(Reference Act 59, 2019 and Act 55, 2021)

Public Utility Definition

An entity that supplies electricity to the public exclusively to charge plug-in electric vehicles is not defined as a public utility and may charge for this electricity by the kilowatt-hour.

(Reference Vermont Statutes Title 30, Chapter 5, Section 203)

Plug-in Electric Vehicle and Off-Road Equipment Rebates - VPPSA

Vermont Public Power Supply Authority (VPPSA) member customers are eligible for rebates of up to $1,000 on the purchase of a new all-electric vehicle (EV), and up to $500 on the purchase of a new plug-in hybrid electric vehicle (PHEV). VPPSA also offers rebates of $500 for the purchase of a pre-owned EV and $250 for the purchase of a pre-owned PHEV. Low-income customers may receive an additional $400 rebate for a new EV or PHEV.

Additional rebates are available for the purchase of an electric forklift, residential or commercial lawnmower, and other yard care equipment.

For more information visit the VPPSA Electric Vehicle Rebate website.

Electric Vehicle (EV) Rebate - Stowe Electric

Stowe Electric offers customers rebates for the purchase or lease of EVs. New plug-in hybrid electric vehicles (PHEVs) are eligible for a $750 rebate, new all-electric vehicles are eligible for a rebate up to $1,000, and income-qualifying customers are eligible for an additional $250 rebate for either vehicle. Stowe Electric also offers a $300 rebate for the purchase of pre-owned EVs and PHEVs. For more information, including how to apply, see the Stowe Electric Rebate Programs website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Electric Vehicle (EV) Charging Station Incentive - Vermont Public Power Supply Authority (VPPSA)

VPPSA offers member customers a $500 rebate for the purchase of a Level 2 EV charging station. To qualify, the EV charging station must be installed for workplace or public use. For more information about these incentives, see the VPPSA Electric Vehicle Charging Station website.

Electric Vehicle (EV) Charging Station Multi-Unit Dwelling (MUD) Pilot Program

The Vermont Agency of Transportation must establish and administer, through a memorandum of understanding with the Department of Housing and Community Development (DHCD), a pilot program to support the installation of EV charging station at MUDs and affordable housing units. The DHCD must consult with other state agencies regarding the design, award of funding, and administration of this pilot program. The DHCD published a report on the outcomes of the pilot program on January 15, 2022. Additional terms and conditions apply.

(Reference Act 55, 2021)

Electric Vehicle (EV) Charging Station Deployment Goal

Vermont established a goal to deploy at least one public direct current fast charging (DCFC) station port within one mile of all interstate and highway exits and within 25 miles of other DCFC stations along state highways. Beginning January 15, 2023, the Vermont Agency of Transportation must publish a map showing the locations of all public DCFC stations on an annual basis until this goal is met.

(Reference Act 55, 2021)

Utility Company Electric Vehicle (EV) Rates

Utility companies must offer EV rates for public and private electric vehicle supply equipment by June 30, 2024. The EV rates must be approved by the Public Utility Commission (PUC). The PUC must submit a written report to the legislature on the progress towards this goal by January 15 of each year through 2025. The PUC published a report on January 14, 2022.

(Reference Act 55, 2021)

Electric Vehicle (EV) Definition

A EV is defined as a vehicle that can be powered by an electric motor that draws electricity from a battery and is capable of being charged from an external source. An EV includes both a vehicle that can only be powered by an electric motor that draws electricity from a battery (all-electric vehicle) and a vehicle that can be powered by an electric motor that draws electricity from a battery and by an internal combustion engine (plug-in hybrid electric vehicle).

(Reference Vermont Statutes Title 23, Chapter 4, Section 85)

Public Transportation Electrification Plan

The Vermont Agency of Transportation (VTrans), in consultation with public transit providers, must prepare a long-range plan that outlines the costs, timeline, training, maintenance, and operational actions required to move to a fully electrified public transportation fleet. VTrans filed the Zero Emissions Transition Plan on January 31, 2022.

(Reference Act 55, 2021)

Vermont's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Vermont Agency of Transportation (AOT) to submit an EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.

For more information about Vermont’s NEVI planning process, see the AOT NEVI website. For more information about Vermont’s NEVI plan, see the Joint Office’s State Plans for EV Charging website.

Multi-Unit Dwelling Electric Vehicle (EV) Charging Station Grant

Funding is available to expand access to EV charging stations at multi-unit dwellings. Eligible applicants include governments, businesses, non-profits, homeowner associations, electric utilities, and EV charging equipment providers. Funding may be used for planning, permitting, purchase, installation, and other onetime costs associated with installing EV charging stations. Additional terms and conditions apply. For more information, see the Vermont Multi-Unit Dwelling EV Charging Grant website.

Pre-Owned Electric Vehicle (EV) Incentives – Burlington Electric Department (BED)

BED offers customers low- or no-interest loans for the purchase of a pre-owned EV. Eligible customers can also apply for a rebate of $1,300 rebate on the purchase of a pre-owned EV or plug-in hybrid electric vehicle (PHEV), with an additional $200 available for moderate income customers. Eligible vehicles must have a manufacturer’s suggested retail price less than or equal to $60,000. Additional terms and conditions apply. For more information, including income eligibility, see the BED Electric Vehicles website.