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Vermont launches the first state e-bike incentive program in the US, plus other EV programs

Vermont is launching new electric bike and car incentive programs and is also continuing an existing EV incentive program for state residents. The transportation sector currently causes about 40% of the state’s carbon emissions. 

The State of Vermont Agency of Transportation has selected the San Diego-based independent nonprofit Center for Sustainable Energy (CSE) to develop and administer the incentive programs. CSE has also worked with California, Connecticut, Massachusetts, New Jersey, New York, and Oregon as clean transport incentive program managers.

The programs, authorized by the 2021 Vermont Transportation Bill (Act 55), provide several types of funding:

  • $50,000 to establish an electric bike incentive, the first authorized statewide e-bike program in the United States
  • $3 million to support incentives for the lease or purchase of new plug-in electric vehicles (PEVs)
  • $1.5 million to create the Replace Your Ride Program, providing $3,000 for Vermonters to scrap older, high-polluting vehicles for cleaner transportation options

CSE will develop a point-of-sale and consumer-direct Electric Bicycle Incentive Program for e-bike purchases made by residents at Vermont retailers or online.

The PEV program, which was launched in late 2019, offers financial incentives to low- and moderate-income residents for buying or leasing plug-in hybrid or all-electric vehicles. The base manufacturer’s suggested retail price has to be $40,000 or less.

Financial Incentives are income based and offered in the following amounts.

Individuals who file as single, head of household, or married filing separately will get a state incentive of $3,000 for a PHEV or $4,000 for an EV if they make $50,000 or less. Those who make between $50,001 and $100,000 will receive $1,500 for a PHEV or $2,500 for an EV.

Married persons filing jointly and individuals filing as qualifying widowers will receive a state incentive of $3,000 for a PHEV or $4,000 for an EV if their income is $75,000 or less. Those with an income of $75,001 up to $125,000 will receive $1,500 for a PHEV or $2,500 for an EV.

Read more: Here’s every electric vehicle that currently qualifies for the US federal tax credit

CSE will also develop the new Replace Your Ride program. It will be an income-qualified program to encourage Vermonters to scrap vehicles more than 10 years old and replace them with cleaner transportation, including new and used PEVs, electric bikes, and shared mobility options such as bike sharing, car sharing, and public transit. Incentives can be combined with the Incentive Program for New PEVs, MileageSmart (Vermont’s used vehicle incentive program), or the Electric Bicycle Incentive Program.

The Replace Your Ride and Electric Bicycle Incentives are expected to launch later this summer.

For more information on current Vermont clean transportation incentives, visit Drive Electric Vermont.

Photo: Vermont Bike & Brew

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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at Check out her personal blog.