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 in May 25, 2023), aimed at incentivizing the shift towards 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):
While an official launch date for the program is yet to be confirmed, it is definitely time to start thinking about your next EV purchase! Here’s what we know so far:
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) The MN EV rebate may be a point-of-sale rebate in the future, but it seems that if you purchase a qualifying EV on or after May 25, 2023, you can get reimbursed by the state at a later date once they have the infrastructure (bank accounts, processes, etc.) to do so, even though the program isn’t officially up and running yet (the law has been passed, though).
In other words, it seems that if you purchase an EV now, the state will square up with you in the future—on a first come, first serve 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:
- No more than one rebate per resident per household; and
- 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 state income taxes. This is a rebate program run by the MN Department of Commerce where you apply for the rebate separately from your income tax filings.
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.
There are also federal tax credits for EVs, which you can read about here: https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
We’ll be keeping a keen eye on the developments of the EV rebate program. Together, let’s drive Minnesota towards a 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 Ultimate EV Marketplace!