ALERT:
The State of Vermont New Plug-in Electric Vehicle (PEV), MileageSmart, and Replace Your Ride (RYR) incentive programs have been fully expended and are closed.
The Electric Bicycle (eBike) Incentive Program is no longer accepting applications. Program funding has been completely reserved, and approved applicants have been placed on a waitlist. Individuals who receive incentives have 30 days from issuance to redeem their incentive. Funds not redeemed within 30 days will be made available for issuance to the next applicant on the waitlist. No incentives will be issued to the waitlist beyond May 30, 2025. The program will close June 30, 2025.
The Electrify Your Fleet Incentive Program will accept applications until June 30, 2025. Approved applicants will have 60 days to redeem incentives. The program will close August 31, 2025.
Climate smart transportation incentive programs help income-qualified Vermonters reduce their transportation related emissions. VTrans works with partners including Drive Electric Vermont and Capstone Community Action to offer programs that replace internal combustion vehicles on the road with new or used efficient and electric vehicle, bicycles, or other clean transportation options.
The Vermont Legislature has authorized four statewide vehicle incentive programs for income-qualified Vermonters, plus an incentive for fleets:
- an incentive program for the purchase or lease of a new plug-in electric vehicle (PEV);
- an incentive program for the purchase of a high fuel-efficiency used vehicle called MileageSmart;
- an incentive program that retires 10+ year old internal combustion engine vehicles and provides funds for cleaner transportation alternatives called Replace Your Ride;
- an incentive program for the purchase of a new electric bicycle (eBike);
- an incentive program to encourage the electrification of business, nonprofit, and municipal fleets called Electrify Your Fleet.
These programs are described in greater detail below.
In addition, the Legislature has also authorized funding for EVSE (EV chargers) for affordable multi-unit developments and other community charging applications. For those interested in these programs, please visit the Department of Housing and Community Development website.
Incentive Program for New Plug-in Electric Vehicles (PEVs) - Funding Expended
Incentives for the purchase or lease of a new plug-in electric vehicle (PEV) were available on a first-come, first-served basis for income-qualified individuals, with greater incentives available for those with lower incomes and for those who chose an all-electric vehicle (AEV) over a plug-in hybrid electric vehicle (PHEV).
For more information, please visit the Drive Electric Vermont website
High Fuel-Efficiency Used Vehicle Program (MileageSmart) - Funding Expended
The MileageSmart high fuel-efficiency used vehicle program provided financial assistance to income-eligible Vermonters at the point-of-sale to purchase vehicles with better than 40 miles per gallon as rated by the EPA when new. MileageSmart contributed up to 25% of the vehicle purchase price, with a maximum of $5,000. Additional information can be found at the MileageSmart website, www.mileagesmartvt.org.
Replace Your Ride Program - Funding Expended
The Replace Your Ride program encouraged owners of older internal combustion engine vehicles to switch to cleaner transportation options by offering an incentive of up to $5,000 to scrap the 10+ year old high-polluting vehicle.
The program offered two options on how to use the incentive:
- Participants could apply their voucher towards the purchase or lease of a new or used PEV;
- Participants seeking a more flexible option could apply their voucher towards active or shared mobility options including the purchase of a bicycle, electric bicycle, or fully electric motorcycle; and/or shared mobility services that reduce the need for vehicle ownership (such as public transit fares, carsharing or bikesharing). Participants who chose the latter option received a clean mobility card, which is a pre-paid debit card that can be used at eligible businesses that help reduce or avoid vehicle miles traveled in single occupancy automobiles.
Incentives through this program could be applied in combination with others through the MileageSmart, New PEV, and electric bicycle incentive programs. More information about the Replace Your Ride program is available at the Drive Electric Vermont website.
Electric Bike Incentive - Not accepting new applications, incentives may become available to waitlisted applicants until May 30, 2025
The State of Vermont launched the nation’s first statewide electric bicycle incentive program to help Vermonters make daily trips with cleaner transportation that helps reduce greenhouse gas emissions.
The program details can be found on the Drive Electric Vermont website.
Electrify Your Fleet Program - Accepting applications until June 30, 2025
Electrify Your Fleet is an electric vehicle incentive program for businesses, municipalities, and nonprofit organizations to reduce the climate impacts from fleet vehicles. The program will help fleet owners fund the replacement of their internal combustion engine (ICE) vehicles with cleaner electric transportation options such as Plug-In Electric Vehicles (PEVs), electric motorcycles, electric bikes, or electric snowmobiles.
Electrify Your Fleet is a first-come, first-served grant program with awards made in the form of reimbursements of as much as $2,500 for each internal combustion engine vehicle replaced or avoided with a maximum of 20 incentives allowed per fleet.
Find a link to the Notice of Funding Opportunity (NOFO), online application, and additional resources on the Electrify Your Fleet Program webpage.
Questions
Contact the Environmental Policy & Sustainability team's general mailbox at aot.climate@vermont.gov.
Newsletter Sign Up
If you would like to receive updates from the Agency of Transportation about these or other climate programs and initiatives, please subscribe to our newsletter.