Delaware has extended a $2,500 rebate for another year, so EV buyers will benefit starting in 2025.
The state’s Clean Transportation Incentive Program will now be available through April 30, 2025, after it was supposed to expire on April 30 of this year.
The money is reserved for those who buy a plug-in hybrid or battery electric vehicle. Since it was first introduced in 2015, the program has sent out approximately 5,500 refunds totaling $12.8 million.
However, some changes are coming for this year’s refund.
Cars blur along Aviation Boulevard in front of the Manhattan Beach, CA, headquarters of electric vehicle maker Fisker Inc., photographed on May 17, 2024. Delaware has extended its rebate for electric vehicles for another year . Cars blur along Aviation Boulevard in front of the Manhattan Beach, CA, headquarters of electric vehicle maker Fisker Inc., photographed on May 17, 2024. Delaware has extended its rebate for electric vehicles for another year . Jay L. Clendenin//Keynote USA/Getty Images
For this year, vehicles that use bi-fuel propane, dedicated propane or natural gas are no longer eligible to receive cash. Now only battery electric cars and plug-in hybrids from authorized dealers will qualify.
“While some states are cutting their incentives for electric cars, it’s a positive sign to see some states like Delaware extending these rebates for another year,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. .
“However, there is one significant change… This is a smarter approach to targeting financial incentives for electric vehicles with rebates. By reducing the type of vehicle accepted, it ensures that those who have not yet purchased an electric car and qualify for a refund.”
Some major vehicle companies are included in the rebate, from Tesla, Audi, Ford, Hyundai and Kia, among others.
However, there will also be more participating dealerships within Delaware that will allow customers to get cash back after purchase.
Most eligible vehicles are priced under $40,000, but cars must be manufactured within eight years of the current model year and registered in the state of Delaware.
If you choose to get a lower-cost car model, you could also qualify for a higher rebate amount.
The maximum available is $2,500 for a new battery electric vehicle with a base manufacturer’s suggested retail price of $40,000 or less.
A lower amount of $1,500 is available for those purchasing a new battery electric vehicle with a retail price between $40,000 and $50,000. Meanwhile, those who purchase new plug-in hybrid electric vehicles with a retail price of $50,000 or less or used plug-in hybrid vehicles with a fair market purchase price of less than $40,000 can also get $1,000.
Delaware’s rebate program joins a federal program that allows tax credits of up to $7,500 for specific models of electric vehicles.
How to get your refund
To apply for Delaware reimbursement, you will need to register as a “provider” with the state through the online portal and then use your provider ID in the online application. Once you apply, you can expect to receive the cash within eight to 10 weeks.
Just keep in mind that if you approved the refund, you may need to report it as taxable income to the U.S. Internal Revenue Service and the Delaware Department of Revenue.
“It’s important to know that any refund can be considered taxable income, so talk to your financial professional about the ramifications related to your personal situation,” Kevin Thompson, financial expert and founder and CEO of 9i Capital Group, told Newsweek.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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