 New state rebate program brings cost to lease some new EVs to less than $200 a month for lower-income drivers
Rebate program is first of its kind in the nation and applies to several popular EV models
SEATTLE — The Washington State Department of Commerce launched its new Electric Vehicle (EV) Instant Rebate Program today. The program will provide up to $9,000 off a new EV lease for low-income drivers at point-of-sale, bringing lease payments under $200 a month on several popular electric models at current pricing – well below the average gas-powered car payment of more than $700 per month.
Washington is the first state to prioritize low-cost leases as part of an EV incentive program. Under the new program, Washington residents earning up to 300% of the federal poverty level – $45,180 annually for a single person, or $93,600 for family of four – are eligible to receive $9,000 for a new EV lease of three years or more, or $5,000 for new EV purchases or two-year leases. Used EVs are also eligible for a $2,500 rebate on both purchases and leases.
The program kicked off today at an event near King Street Station in Seattle’s Chinatown-International District neighborhood, attended by Gov. Jay Inslee and Commerce Director Mike Fong.
“For folks who want to pay zero dollars at the gas pump, electric vehicles make that possible,” said Inslee. “These rebates open up so many affordable new options to thousands of lower-income drivers. This brings down costs for consumers and reduces pollution in our communities.”
“No one should be left behind in the drive toward electric,” said Fong. “Transportation is the biggest contributor to greenhouse gas emissions and harmful air pollution, and the most impacted communities have the fewest alternatives. By creating more options to drive electric, this program will help individuals and the state move toward a healthier future.”
About 37% of Washington residents are at or below 300% of the federal poverty level — and disproportionately, they’re people of color and from historically marginalized communities. In leading the development of the state’s Transportation Electrification Strategy, Commerce found that households with incomes below $100,000 are just as interested and ready to choose electric vehicles as those in higher-income households, but are often limited by higher costs.
A selection of the leading EVs in the market was on display at today’s event. The expanding EV market means there are cars available at all price points and that will meet a variety of needs. The variety of options, combined with the rebates and depending on factors like consumer credit scores, means a customer might be able to save as much as $18,000 when they drive off in a new EV. According to current nationally advertised lease deals, using the full rebate as a down payment brings monthly payment options to less than $200 for at least seven models, with no money down and after estimated fees.
There’s $45 million in funding available for an estimated 7,500 to 9,000 rebates, depending on how many are used for purchase versus lease, and used versus new.
How it works
Individuals and households making up to 300% of the federal poverty level qualify for the rebate program, which is an instant discount of $2,500 to $9,000 at point of sale or lease. The driver must be a Washington resident who registers the vehicle for personal use with the Washington State Department of Licensing.
Interested drivers will go to participating dealers to learn about low-cost lease and sale offers available under the state instant rebate program. The dealer will get a signed attestation that the buyer meets the income requirements of the program, and determine that their credit score qualifies for a lease deal. The dealer then deducts the applicable rebate amount from the cost of the lease, then applies dealer, state and local fees to arrive at the total lease amount.
For example: A dealer is advertising a three-year lease at $259 per month with $2,259 due at signing – for a total lease cost of $11,324 ($2,259 + $259 x 35 months). For the qualifying customer, a $9,000 state EV Instant Rebate brings the lease cost down to $2,324. The dealer applies a $500 lease fee, $200 documentation fee, and collects state and local transit, title and registration fees of $685, making the final lease total $3,709, or $103 per month over the 36-month agreement. The rebate must be applied at the time of transaction.
Together, these opportunities make EVs more accessible to a broader range of people. Dealers who participate in the program can also receive incentives for promoting EV adoption. Additionally, the program will provide EV charging education through a series of ride-and-drive events.
The new rebate isn’t the only incentive to switch to electric. There’s also a $7,500 federal EV tax credit available to purchase select new EVs, and $4,000 for used EVs under $25,000. There also may be incentives of up to $7,500 available to lease, depending on the dealership. The state rebate can be added to both the federal credit – which is now available at the point of sale instead of on tax returns – and a statewide sales-tax exemption for some vehicles.
Rebate amounts
New EVs
- State rebate to purchase or two- or three-year lease: $5,000
- State rebate for 3+ year lease: $9,000
- Federal rebate to purchase select models: $7,500
Used EVs
- State rebate to purchase or two- or three-year lease: $2,500
- State rebate for 3+ year lease: $2,500
- Federal rebate to purchase select models: $4,000
Full battery electric vehicles with manufacturer’s suggested listed price below $90,000 are eligible, not including motorcycles, scooters and low-medium/speed vehicles, such as golf carts.
More charging stations coming online
While many EV drivers do the majority of their charging at home, new and current EV drivers will see more charging stations available throughout communities as public and private investments in the state’s charging network continues to come online. Commerce announced more than 5,000 new stations earlier this year, including stations in vulnerable and rural communities. The new stations are funded in part by the state’s Climate Commitment Act. The Biden-Harris Administration has also announced federal grants for new high-speed chargers in Washington, including charging for trucks hauling cargo at the ports of Seattle and Tacoma.
Drivers can find their nearest public charging station on PlugShare.
Washington is one of the best states in the U.S. to drive an EV, with drivers saving an average of $1,630 in fueling costs for every 10,000 miles. And fewer emissions in highly impacted communities will make them healthier and safer.
EVs have a significantly lower carbon footprint than traditional gasoline-powered vehicles. The average EV in Washington is responsible for about 653 pounds of carbon dioxide emissions annually across its lifespan, while a gas-powered vehicle pollutes 12,523 pounds – more than 19 times as much.
It is estimated that the program could lead to a reduction of up to 25,000 metric tons of CO2 emissions in the transportation sector, Washington’s greatest contributor of greenhouse gas emissions.
View photos and video from today’s event on Commerce’s flickr site.
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