Statewide Vehicle Incentive Programs

The Vermont Legislature has authorized three statewide vehicle incentive programs for income-qualified Vermonters: 1) an incentive program for the purchase or lease of new plug-in electric vehicles (PEVs), 2) a high-fuel-efficiency used-vehicle incentive program, and 3) an emissions-system repair program. These programs are described in greater detail below.

New PEV Incentive Program

VTrans has worked with Vermont’s electric distribution utilities and with VEIC, which runs Drive Electric Vermont, to administer the statewide incentive program for new PEVs. Incentives became available on a first-come, first-served basis beginning December 16, 2019. The Legislature changed the program eligibility requirements effective July 01, 2020.

Incentives are available for income-qualified individuals, with greater incentives available for those with lower incomes and for those who purchase all electric vehicles:

Incentives are limited to PEV's with a base MSRP of $40,000 or less. More than twenty PEV models available in Vermont are eligible. The statewide incentive may be used in combination with additional PEV incentives offered by the state’s electric utilities and federal tax credits for greater savings.

Under the statewide incentive program for new PEVs, eligible customers may receive the incentive directly from a participating car dealer in the form of a reduced purchase or lease price, or they may receive a direct cash reimbursement from the electric utility that serves their household. Over 30 dealers are participating.

It is not necessary to be a utility customer to participate in the program. Incentives are limited to one per person and to Vermont residents. Incentives are not available retroactively for purchases or leases made prior to the program launch or for purchases or leases made when funds have been exhausted and new funding is not yet available.

For more information, including remaing funds, eligible models, application forms, and a current list of participating auto dealerships, please visit the Drive Electric website at:

High Fuel-Efficiency Used-Vehicle Program

The high fuel-efficiency used-vehicle program authorized by the 2019 Transportation Bill provides point-of-sale financial assistance to income-eligible Vermonters to purchase used fuel-efficient vehicles. Capstone launched this program, now called MileageSmart, on March 10, 2020. MilegaeSmart can contribute up to 25% toward the purchase of a used high-miles-per-gallon (MPG) vehicle. Additional information about MileageSmart, including how to apply, can be found at

Emissions Repair Program

Capstone is continuing to build the emissions-repair program authorized by the 2019 Transportation Bill. This program will provide point-of-repair financial assistance to income-eligible Vermonters to help repair vehicles that failed emissions testing. VTrans will update this webpage with more information about the emissions-repair program when it becomes available. If you would like to receive updated information about the emissions-repair program directly, please submit an email address below.