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Minnesota rolls out rebates of up to $2,500 for EV buyers

With the debut of a state rebate this week, Minnesotans who buy or lease electric or plug-in hybrid vehicles could get up to $10,000 off the purchase price in combined government incentives.

Minnesota consumers purchasing or leasing new electric or plug-in hybrid vehicles may receive a state rebate up to $2,500. For used electric vehicles, the rebate is up to $600. Vehicles must have been purchased or leased on or after May 25, 2023, and titled in Minnesota.

New vehicles must have a base manufacturer’s suggested retail price of $55,000 or less to qualify for the state program, excluding taxes and fees. Used vehicles must have a purchase price of $25,000 or less.

Consumers may apply for the rebate starting Wednesday, Feb. 7, at 10 a.m. on the Minnesota Department of Commerce website.

The state rebate can be combined with federal tax credits for buying new or used electric vehicles. Purchases of new EVs may qualify for up to $7,500, and $4,000 for used vehicles, in the federal program. Federal tax law also allows a credit of 30% of the total cost to install a home charger, up to $1,000.

State rebate applications will be reviewed for new and used electric and plug-in hybrid vehicles on a first-come, first-served basis, according to the Commerce Department.

The state advises that each application will be processed individually “to ensure program integrity. This means payments will not happen immediately,” the Commerce Department says on its website, which doesn’t specify how long it will take to get a rebate check and urges “patience.”

The state has set aside $10.6 million for fiscal 2024, and $5.2 million the following fiscal year to pay for the rebates, the Commerce Department said.

The rebates will be distributed by June 30, 2027, or until the funding runs out, whichever occurs first.

The program took months to perfect after being authorized by the Legislature and Gov. Tim Walz last year, but officials are confident the application process is ready for prime time now.

An earlier version of this story misstated the type of hybrid vehicles that are eligible for the state rebate. It is available for electric and plug-in hybrid vehicles.

This article was originally published by a www.startribune.com . Read the Original article here. .

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