Washington leaders on Tuesday announced a $45 million program aiming to make electric vehicles more affordable for the state’s low-income residents.
The Washington EV Instant Rebates Program will provide rebates at the time of purchase for eligible consumers who buy or lease a new or used EV. The deal applies to residents earning up to $45,180 a year for a single person or $93,600 for a family of four.
The state’s Department of Commerce, which is managing the program, estimated potential lease terms for lower-priced EVs, concluding that the new rebates combined with federal government incentives and deals from automakers could cut the cost of a monthly lease to below $100 for vehicles including Hyundai’s Kona and Ioniq6 models, and Nissan Leafs.
Under the new plan:
- New EVs are eligible for a $5,000 rebate for a purchase or 2-year lease, or $9,000 for a lease of 3 years or longer.
- Used EVs are eligible for a $2,500 rebate for purchases and leases of two years or longer.
The program launches in August and is expected to run until June 2025 or until the funding is gone. Commerce expects to issue between 6,500 and 8,000 rebates. The deal applies to vehicles priced at $90,000 or less.
“With these new rebates, we’re significantly lowering the entry point, opening the door to EVs for people of modest incomes as we continue paving the way to a clean transportation future for all,” said Gov. Jay Inslee in a statement.
The program appears to be the first in the nation to provide rebate incentives for low-cost leases, as opposed to sales. The federal government additionally offers a tax credit of up to $1,000 to low-income and non-urban residents for the installation of charging infrastructure.
Beyond the new rebates, there are other EV incentives available to consumers regardless of income.
- Federal tax credits provide rebates of up to $7,500 for the purchase or lease of qualifying new EVs, and up to $4,000 for used EVs.
- Washington provides sales tax exemptions of up to $975 for the purchase and $1,040 for the lease of lower-priced new and used EVs.
- Washington waives taxes for the purchase and installation of charging devices.
- Many utilities offer rebates for the installation of chargers.
Washington has ambitious goals for making the switch to electric vehicles. By 2035, all new vehicles sold in the state must be zero carbon emissions.
Data shows that 19% of new cars registered in Washington in 2023 were electric vehicles and plug-in hybrids — almost double the U.S. average. That’s a jump from 13% in 2022 and puts Washington just behind California, whose low-carbon car sales hit nearly 26% last year, according to the Alliance for Automotive Innovation.
But while EV sales have been rising, overall growth is slowing in the U.S. and global markets, experts say. Lagging Tesla sales are driving much of the slowdown domestically, according to analysts, but the company Tuesday renewed its commitment to making a lower-priced vehicle starting next year. American automakers including GM and Ford are pulling back on their EV manufacturing.
Access to charging is also expanding. Nationwide, there is now one fast-charging EV station for every 15 gas stations, according to a recent analysis by Bloomberg Green. The study notes that about 25% of those are Tesla stations.
Washington has spent $100 million on EV infrastructure, tapping revenue from the state’s Climate Commitment Act. Most of the funding has paid for chargers in multifamily housing, public locations and communities hardest hit by air pollution.
The fate of the climate act will be determined by voters in November. Initiative 2117 would eliminate its carbon permit program that limits emissions in the state.
