State extends rebates for electric vehicles and plug-in hybrids

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The Delaware Department of Natural Resources and Environmental Control’s Clean Vehicle Rebate Program has been extended.

“Electric vehicles continue to grow in popularity, with many manufacturers committing to transition their fleets to zero-emission vehicles.” said DNREC Secretary Shawn M. Garvin. “Additionally, electric vehicle adoption is a key strategy for reducing air pollution and greenhouse gas emissions in our state, our country, and the world.”

Since the program began in July 2015, it has provided more than $9 million in rebates to more than 4,000 electric vehicle purchasers. Since January 2023, the program has issued 391 rebates for amounting to $923,500.

The Clean Vehicle Rebate Program provides rebates for the lease or purchase of qualifying electric vehicles. The program extension runs through April 30, 2024. In addition, there are a few enhancements to the program for vehicles purchased or leased on or after May 1, 2023:

  • A new application portal will make it easier for car shoppers to redeem the rebate at the dealership or up to 90 days after their purchase.
  • New price limits are based on the manufacturer’s suggested retail price (MSRP), instead of the total price to ensure additions like trailer hitches won’t affect rebate eligibility.
  • A regularly updated list provides car shoppers a quick reference to the 30+ Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) eligible for the rebate.

The program includes:

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  • $2,500 for BEVs (electrics) with a base MSRP of $50,000 or less.
  • $1,000 for (plug-in hybrid) PHEVs with a base MSRP of $50,000 or less.

The growing number of non-plug-in hybrids do not qualify.

DNREC’s rebate program is in addition to federal tax credits that are available for some models of electric vehicles. With a cash rebate from the Delaware Clean Vehicle Rebate Program and a federal tax credit of up to $7,500, purchasers can save up to $10,000 on qualifying electric vehicles.

Recent legislation limits the number of vehicles currently available for the full federal tax credit, although that number is expected to increase. There are also provisions that allow for leasing of vehicles that are not on the list.

There have been price cuts on some electric vehicles, primarily from Tesla, which had not qualified for a federal tax credit because it sold more than a quarter of a million vehicles. GM also exceeded the 250,000 limit. A recent tax ruling does allow a tax credit for Tesla and GM models assembled in North America. Click here for a recent list off eligible vehicles.

Some electric and plug-in hybrid vehicles, notably the best-selling Hyundai and Kia models, are not sold in Delaware. However, Delawareans can buy models in neighboring states and qualify for the state rebate.

DNREC will also continue to offer rebates for Level 2 charging stations through the Electric Vehicle Charging Equipment Rebate program. The program provides rebates for electric vehicle charging stations for public access, workplaces, and fleets. Enhanced rebate amounts are now available to incentivize installing charging stations at multi-family dwellings.

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