Four months ago, Clean Fuels Michigan shared a blog post highlighting the potential of clean vehicle incentives for Michigan. We discussed the many benefits of electrification including cleaner air and fuel cost savings and how incentives can demonstrate state leadership. Today, we will focus on best practices for EV rebates based on a recent report.
A study from the Greenlining Institute called “Ingredients for Equitable Electrification” analyzes state electric vehicle rebate programs and recommends six specific policies to ensure that rebate programs are implemented equitably. The report examined rebate programs in California, Oregon, Colorado, and Illinois. The analysis reviewed indicators including funding source, taxability, upfront cost, eligibility of used and leased vehicles, rebate amounts, and income caps. The findings recommend that state electric vehicle programs be designed with the following provisions:
- Available as close to the point of sale as possible
- Available for leased and used EVs
- Offer higher amounts for low-income qualified applicants
- To minimize the burden of reporting income, applicants can show proof of enrollment in public assistance programs to receive the low-income qualified rebate
- Available to be combined with other incentive programs
- Do not treat the incentive as taxable income
- Include provisions for public education
- Improve program accessibility through online and printed application materials in multiple languages
The report recommends that the incentive program’s ultimate and primary goal is not to accelerate market adoption of cleaner vehicles but to increase access to clean vehicles for low and moderate-income families.
We continue to support effective EV rebate programs. In addition to the list above, it’s important that EV rebate programs:
- Have enough funding to lock in the incentive for several years
- Are relatively simple for consumers and dealers to understand
We continue to support an EV rebate for Michigan with provisions for equity and effectiveness. To make this happen, we remained committed to facilitating discussions between legislators and the community to ensure that Michigan remains a national leader in the transportation industry and that all Michiganders can access clean mobility solutions.