Auto Dealers EV Grant Program

Current update (02/14/2024): As of 1/31 there were a total of 113 applications. 62 applications were from dealerships located within Xcel Energy service territory and 51 applications were from dealerships outside of Xcel territory. Staff are in the process of reviewing each application individually to ensure compliance with programmatic requirements.

The dollar amount as of 1/31/2024 far exceeded what was allocated by the Legislature for this program and therefore the application portal has been closed.

Purpose:

The purpose of the Manufacturers’ Certification of Auto Dealers to Sell Electric Vehicles (EVs) Grant Program (Auto Dealers EV Grant Program) is to offset the costs incurred to certify a dealer to sell electric vehicles (Minn. Stat. § 216C.402).  

Applicant Resources: 

The Minnesota Department of Commerce hosted a webinar on January 24, 2024. Click here to view the webinar given on January 24, 2024 for the Auto Dealers EV Grant Program. 

A Frequently Asked Questions document in response to questions posed during the webinar, and submitted to Energy.Contracts@State.mn.us is now available here (pdf link).

Eligibility: 

Eligible applicants for this grant program are dealerships of new EV motor vehicles licensed under Minn. Stat. § 168.27 subd. 2  operating under a franchise from a manufacturer of electric vehicles. Independent dealerships are not eligible (Minn. Stat. § 216C.402 subd.3). 

Expenditures that may be eligible for reimbursement under this grant are:

1. for the reasonable costs to obtain training and certification for the dealer's employees from the electric vehicle manufacturer that awarded the franchise to the dealer (Minn. Stat. § 168.27, Subd. 2a); and 
2. for the reasonable costs to purchase and install equipment to service and repair electric vehicles, as required by the electric vehicle manufacturer that awarded the franchise to the dealer (Minn. Stat. § 216C.402 subd. 5); and
3. incurred by an eligible applicant on or after May 25, 2023.   

Fund Availability 

The State of Minnesota has separate funds to support new EV dealers who are served by Xcel Energy ($890,000) and those who are located outside of Xcel territory ($900,000). The dealerships must be able to provide authenticated documents verifying eligible expenditures. Grant awards to a single dealership must not exceed $40,000. Completed applications will be reviewed on a first-come, first-served basis.

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