Does Minnesota have an EV rebate? What about a Minnesota EV tax credit?

This is a question that we get a lot from customers, and until now, we haven’t really had a great answer…

As a Minnesota-based EV business, we’ve been waiting for our home state to catch up with many other states in terms of local incentives…

With that said, we are thrilled to share some exciting news that has us buzzing here in the Land of 10,000 Lakes!

Our state recently launched the Electric Vehicle (EV) Rebate program (although the law was passed on May 25, 2023), aimed at incentivizing the shift toward cleaner, sustainable transportation.

Let’s take a look at the specifics, and answer some questions that haven’t been answered on the Internet yet…

What Is the MN EV Rebate? How Does It Work?

The Minnesota EV Rebate was signed into law on May 25, 2023 and administered by the MN Department of Commerce. The program officially launched on February 7th, 2024, and is currently taking applications (as of 2/15/2024).

We’ve been in contact with them for details, and you can find the program details on their website here:

And if you want to nerd out by reading the actual bill that was passed, you can find it here (scroll to line 394.27):

The Minnesota EV Rebate Program began accepting applications on February 7, 2024, meaning eligible EV buyers can now apply for their rebate. Here’s what we know:

1) The rebate will apply to EVs purchased on or after May 25, 2023. To qualify, you need to provide authenticated documents verifying the purchase.

2) For a new EV with an MSRP of $55,000 or less (excluding taxes and fees), the state offers up to a $2,500 rebate. They haven’t forgot about used EVs either, which we’re excited to see. Used EVs priced at $25,000 or less (excluding taxes and fees) could qualify for up to a $600 state rebate.

3) In the future, the MN EV rebate could be applied as a point-of-sale rebate, deducted directly from the purchase price at the dealership. However, as of now, buyers must apply for reimbursement after purchasing a qualifying EV. If you purchased a qualifying EV on or after May 25, 2023, you may be eligible for reimbursement once the state finalizes the necessary infrastructure (bank accounts, processes, etc.), even though the program was not yet operational at the time of purchase.

If you purchase an EV now, you may still qualify for reimbursement later, as long as funds remain available—on a first-come, first-served basis.

However, when the program is officially running, it may be a point-of-sale rebate taken directly off the price of the vehicle. The text from the actual bill, states on line 397.4 that:

“The commissioner must, in coordination with dealers and other state agencies as applicable, develop a procedure to allow a rebate to be used by an eligible purchaser or lessee at the point of sale so that the rebate amount may be subtracted from the selling price of the eligible electric vehicle.”

With this information in mind, we thought it would be helpful to provide a short FAQ section to address common questions you may have.

FAQs About the MN EV Rebate

The following are commonly-asked questions about the Minnesota electric vehicle rebate.

Q: What are the eligibility criteria for the MN EV rebate?

A: For a vehicle to qualify, it must be purchased on or after May 25, 2023, and authenticated documents verifying the purchase must be provided. New EVs costing $55,000 MSRP or less and used EVs costing $25,000 or less can qualify for rebates of up to $2,500 and $600 respectively.

Q: How many times can someone claim the MN EV rebate?

A: The bill that was passed states:

The number of rebates allowed under this section is limited to:

  1. No more than one rebate per resident per household; and
  2. No more than one rebate per business entity per year

How will this be interpreted exactly by the state? We aren’t exactly sure, but that’s what the bill itself says.

Q: When does the MN EV rebate program officially launch?

A: The Minnesota Department of Commerce officially launched the program on February 7th, 2024.

Q: Is this a Minnesota EV tax credit?

A: No, this is a rebate, not a tax credit. It’s not filed with your Minnesota state income tax return. While the rebate is not taxable on your Minnesota state income tax return, it is considered taxable income for federal tax purposes. Recipients will receive a Form 1099-MISC and must report it on their federal tax return. We recommend consulting a tax professional for guidance.

Q: Is the MN EV Rebate taxable?

A: The rebate is not taxable at the state level but is considered taxable income at the federal level. Recipients should receive Form 1099-MISC from the state and will need to report it when filing their federal taxes. As tax laws can vary, we recommend consulting a tax professional for specific guidance.

Q: Are there separate federal rebates for EVs?

A: Yes, there are separate federal rebates, but these involve a different application process and have different qualifying criteria. For more information, you can visit: energy.gov/save/drivers.

Go Beyond EVs with a Sustainable Home in Minnesota

Minnesota’s dedication to sustainability extends beyond electric vehicles. From cleaner transportation to energy-efficient homes, the state is leading the charge toward a greener future.

For those looking to align their lifestyle with these values, local resources like Home Builders MN connect you with trusted professionals to build or remodel energy-efficient homes tailored to your specific needs. From Minneapolis to Lakeville, they specialize in creating spaces that reflect your commitment to sustainability.

Additionally, the Minnesota Housing Finance Agency’s Sustainable Housing Initiatives provide valuable resources and programs to support energy-efficient housing across the state. Whether you’re interested in solar energy, green building techniques, or home efficiency upgrades, Minnesota offers incentives to help homeowners make sustainable choices.

Fun fact: Did you know that in Minnesota, photovoltaic devices (solar electric systems) are exempt from property taxes? This means that installing a solar energy system can increase your property’s value without increasing your property tax.

Additionally, solar energy systems are exempt from Minnesota’s 6.875% sales tax, reducing the upfront cost of installing solar panels or heating systems.

Tax Credit Links and Resources

Let’s work together to drive Minnesota toward a greener, more sustainable, and electric future!​

And if you’re looking for a used EV, check out our used electric vehicles for sale, only at Find My Electric—the #1 EV Marketplace!