While fewer than 1% of vehicles registered in Minnesota are all-electric, state policymakers are hoping that new state rebates, coupled with federal rebates, make buying a new or used EV a bit more affordable.
Tax credits of up to $2,500 for new electric vehicle purchases and up to $600 for used electric vehicle purchases rolled out last week after being included in a nearly $400 million energy and environment omnibus bill passed by the Minnesota Legislature last year.
The electric vehicle rebates specifically are intended to complement federal tax credits of up to $7,500 for purchasing a new EV and $4,500 for purchasing a used EV, along with 30% of the cost of installing a home EV charger.
The omnibus package also included a grab bag of reforms and investments in clean energy and energy efficiency initiatives. They are funded mostly by the state budget surplus, but also with over $100 million from Xcel Energy in exchange for being able to store nuclear waste from its power plants near Red Wing and Monticello.