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Electric Vehicle (EV) Rebate Program

EV Rebate FAQ

The MN Department of Commerce is now accepting applications for the Electric Vehicle (EV) Rebate Program. The program launched on February 7, 2024. Completed applications will be reviewed on a first-come, first-served basis. The State of Minnesota has limited funds for the EV rebate.

For new electric vehicles, owners/lessees may receive a rebate up to $2,500. For used electric vehicles, owners may receive a rebate up to $600

What are the electric vehicle eligibility requirements?

Eligible new electric vehicles must meet requirements that include, but are not limited to, the following:

  • EV purchased or leased on or after May 25, 2023.
  • EV can be new or used.
  • EV has not been modified from the original manufacturer's specifications.
  • New vehicles must have a base MSRP of $55,000 or less, excluding taxes and fees.
  • Used vehicles must have a purchase price of $25,000 or less, excluding taxes and fees.
  • The electric vehicle is purchased or leased from a dealer or directly from an original equipment manufacturer that does not have licensed franchised dealers in Minnesota; and the electric vehicle is for use by the purchaser and not for resale.
  • Both fully electric and plug-in hybrid vehicles are included.

I’m a renter and I don't have an electric utility bill because the cost is covered in my rent. Can I still apply?

Yes, you can still qualify if you are a renter and do not pay your electric utility bill directly. Rather than submit a utility bill, you should instead submit your lease agreement at the time of vehicle purchase, which will verify you as a Minnesota resident.

When will I get my rebate?  

Commerce is reviewing applications on a first-come, first-served basis. Each application must be processed individually to ensure it complies with program and state requirements. Commerce expects rebate payments to begin going out in April 2024. You will receive email notification if additional information is needed, as well as an email update when your application is fully approved and complete, or rejected. 

Why am I receiving an error when I upload the required documents in the application?

When uploading the required documents, click "Upload Files" to select and upload all required documents at once. Do not upload one document at a time. Once you see a green check next to each document, they have been uploaded correctly.

Am I eligible for federal rebates if I receive a state EV rebate?

Federal rebates for EVs involve a separate application process with different criteria to qualify for an EV rebate. For more info about a federal EV rebate go to: energy.gov/save/drivers.

Is there an income requirement to be eligible for an EV rebate?

No, there is not an income eligibility component to the EV rebate program. New vehicles must have a base MSRP of $55,000 or less, excluding taxes and fees. Used vehicles must have a purchase price of $25,000 or less, excluding taxes and fees. 

If I own the electric vehicle with another person, which name should I enter in the application?

When submitting the application enter the name of the primary person listed on the title of the electric vehicle.

Can a household with multiple drivers (and multiple car owners) get multiple EV rebates?  

Per the statute, yes. The limit is one rebate per (eligible) resident per household.

Are electric motorcycles eligible for the EV rebate and what is the rebate value? 

Electric motorcycles are eligible for the EV rebate if the motorcycle can reach a maximum speed of 75 mph or above.

How much money can I get for my electric motorcycle? 

  • For new electric motorcycles owners/lessees may receive a rebate up to $1,400. 
  • For used electric motorcycles, owners may receive a rebate up to $350. 

What happens when available funds for the program run out? 

When remaining funds run out, you will still be able to apply for a rebate, but you will be placed on the waitlist and will remain there until additional funds become available. Please be aware that you may not receive a rebate if all available funds are allocated to applications ahead of you.

Once all funds for the program have been paid out, the application portal will close and any remaining applicants on the waitlist will be notified that their application will not be paid.  

Is the rebate taxable? 

Everybody’s tax situation is unique, and you should consult with your tax professional and/or accountant for any specific tax related information. 

When are EV rebate applications due?

EV rebate applications are processed on a first come first served basis until the funding has been fully distributed or June 30, 2027, whichever occurs first. 

If I am a business, non-profit or government entity can we receive more than one EV rebate per year?

No, a business, non-profit or government entity may receive no more than one EV rebate per fiscal year (July 1 - June 30).

Can the EV rebate program be used by fleet operators?

Yes, fleet operators may receive up to one EV rebate per fiscal year (July 1 - June 30).

Will I receive a receipt when I submit my EV rebate application?

Yes, a confirmation that the application was received will be sent to the email address provided in the application.

How will I know if my application is approved or rejected?

An email notification will be sent once the application has been approved or rejected.

What can I do if I receive a rejection of my submitted EV rebate application?

Applicants may submit additional information regarding the reason(s) for rejection and / or reasons they feel their application should not have been rejected.

Can I email or submit a paper rebate application?

No. Applications must be submitted using the online portal.

Is the EV rebate a tax credit or will direct payments be made?

EV rebates are not a tax credit. Rebates will be issued in the form of a payment.

Are charging infrastructures at individual homes or businesses eligible for rebates in the EV rebate program?

No, the EV rebate is only for electric vehicles.

How do I find the base MSRP of my new vehicle?

The base MSRP stands for the base Manufacturer's Suggested Retail Price.

For most vehicles, this cost will be on the vehicle’s Monroney label as the “Manufacturer’s Suggested Retail Price” or “Standard Retail Price”, highlighted in yellow on the image below:

.monoroney-label

For Teslas, this value must be calculated by adding the costs of the basic vehicle model and vehicle trim level provided on the first page of your purchase agreement document. An example of the costs that must be added for the base MSRP of a Model 3 is below:  

Tesla-application


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