SEATTLE — In a move set to revolutionize access to electric vehicles (EVs), the Washington State Department of Commerce has officially launched its innovative Electric Vehicle (EV) Instant Rebate Program. This pioneering initiative, effective today, offers an unprecedented opportunity for low-income drivers to transition to electric mobility by providing up to $9,000 in rebates on new EV leases at the point of sale. This significant discount can bring monthly lease payments down to under $200 for a range of popular electric models, a stark contrast to the current average monthly payment for gas-powered cars which exceeds $700.
Washington State stands out as the first in the nation to prioritize low-cost leasing within an EV incentive program. Under this groundbreaking Low Income Electric Car Program, Washington residents with incomes up to 300% of the federal poverty level are eligible for substantial rebates. This income threshold translates to an annual income of $45,180 for an individual or $93,600 for a family of four. Qualifying residents can receive $9,000 towards a new EV lease of three years or more, or $5,000 for purchasing a new EV or opting for a two-year lease. The program extends its reach to used EVs as well, offering a $2,500 rebate for both purchases and leases of pre-owned electric vehicles.
The official program launch took place at an event near King Street Station in Seattle’s Chinatown-International District, with Governor Jay Inslee and Commerce Director Mike Fong in attendance. “For folks who want to pay zero dollars at the gas pump, electric vehicles make that possible,” Governor Inslee stated. “These rebates open up so many affordable new options to thousands of lower-income drivers. This brings down costs for consumers and reduces pollution in our communities.”
Director Fong emphasized the program’s commitment to inclusivity, stating, “No one should be left behind in the drive toward electric. Transportation is the biggest contributor to greenhouse gas emissions and harmful air pollution, and the most impacted communities have the fewest alternatives. By creating more options to drive electric, this program will help individuals and the state move toward a healthier future.”
Data indicates that approximately 37% of Washington residents fall at or below 300% of the federal poverty level, and disproportionately, these are individuals from communities of color and historically marginalized groups. Commerce’s research during the development of the state’s Transportation Electrification Strategy revealed that households earning below $100,000 annually are equally interested in and prepared to adopt electric vehicles as higher-income households, but are often deterred by the higher upfront costs. This low income electric car program directly addresses this barrier.
A diverse selection of leading EVs was showcased at today’s launch event, highlighting the expanding EV market’s ability to cater to various price points and transportation needs. The combination of diverse EV options and these substantial rebates means that, depending on factors like consumer credit scores, individuals could potentially save up to $18,000 when transitioning to a new EV. Current nationally advertised lease deals suggest that applying the full $9,000 rebate as a down payment can bring monthly payments to under $200 for at least seven different EV models, with no initial down payment and after accounting for estimated fees. This low income electric car program significantly enhances EV affordability.
With $45 million in allocated funding, the program anticipates facilitating an estimated 7,500 to 9,000 rebates. The precise number will depend on the distribution between purchases and leases, as well as new and used vehicle rebates.
How the Low Income Electric Car Program Works
The low income electric car program is designed to be straightforward and accessible. Individuals and households earning up to 300% of the federal poverty level are eligible for rebates ranging from $2,500 to $9,000, applied instantly at the point of sale or lease. To qualify, applicants must be Washington State residents and register the vehicle for personal use with the Washington State Department of Licensing.
Prospective drivers are encouraged to visit participating dealerships to explore low-cost lease and sale options available through the state’s instant rebate program. The dealership will verify income eligibility through a signed attestation and confirm the applicant’s credit score meets lease requirements. Subsequently, the dealer will deduct the applicable rebate amount from the vehicle cost before applying standard dealer, state, and local fees to calculate the final lease or purchase total.
Consider this example: A dealership advertises a three-year lease at $259 per month with $2,259 due at signing, resulting in a total lease cost of $11,324 ($2,259 + $259 x 35 months). For an eligible customer under the low income electric car program, the $9,000 state EV Instant Rebate reduces the lease cost dramatically to $2,324. After adding a $500 lease fee, $200 documentation fee, and approximately $685 for state and local transit, title, and registration fees, the final lease total becomes $3,709, or just $103 per month over the 36-month term. Crucially, the rebate is applied directly at the time of the transaction, simplifying the process for consumers.
These combined incentives make EVs accessible to a broader spectrum of the population. Participating dealers in the low income electric car program are also eligible for incentives to further promote EV adoption. Complementing the financial rebates, the program will also offer EV charging education through a series of ride-and-drive events, empowering new EV drivers with the knowledge they need.
疊加優惠和電動汽車充電設施擴展
This new rebate program complements existing incentives for transitioning to electric vehicles. The federal government offers a $7,500 federal EV tax credit for purchasing select new EVs and $4,000 for used EVs priced under $25,000. Furthermore, depending on the dealership, lease incentives of up to $7,500 may also be available. The Washington State rebate can be combined with both the federal tax credit – now conveniently available as a point-of-sale discount – and a statewide sales-tax exemption applicable to certain electric vehicles. These stacked incentives make the low income electric car program even more impactful.
Rebate Amounts Summary:
New EVs:
- State rebate for purchase or 2- or 3-year lease: $5,000
- State rebate for 3+ year lease: $9,000
- Federal rebate for purchase of select models: $7,500
Used EVs:
- State rebate for purchase or 2- or 3-year lease: $2,500
- State rebate for 3+ year lease: $2,500
- Federal rebate for purchase of select models: $4,000
Full battery electric vehicles with a manufacturer’s suggested retail price below $90,000 are eligible under this low income electric car program, excluding motorcycles, scooters, and low-medium speed vehicles like golf carts.
While home charging is common for EV owners, the availability of public charging stations is rapidly expanding. New and prospective EV drivers will benefit from an increasing number of charging stations throughout Washington communities, fueled by both public and private investments in the state’s charging network. Earlier this year, Commerce announced the addition of over 5,000 new stations, including installations in underserved rural and vulnerable communities. These new charging stations are partially funded by the state’s Climate Commitment Act. Furthermore, the Biden-Harris Administration has allocated federal grants for new high-speed chargers in Washington, including charging infrastructure for heavy-duty trucks at the ports of Seattle and Tacoma. These investments ensure convenient charging access for participants in the low income electric car program and all EV drivers.
Drivers can easily locate the nearest public charging station using platforms like PlugShare.
Washington State is recognized as one of the leading states in the U.S. for EV adoption, with EV drivers in the state saving an average of $1,630 in fuel costs for every 10,000 miles driven. Moreover, reduced emissions in disproportionately impacted communities will contribute to healthier and safer living environments. The low income electric car program is poised to amplify these benefits.
EVs inherently possess a significantly lower carbon footprint compared to traditional gasoline vehicles. In Washington, the average EV is responsible for approximately 653 pounds of carbon dioxide emissions annually over its lifespan, whereas a gasoline-powered vehicle emits 12,523 pounds – over 19 times more.
It is estimated that this impactful low income electric car program has the potential to reduce CO2 emissions in the transportation sector – Washington’s largest contributor to greenhouse gas emissions – by up to 25,000 metric tons.
Explore photos and video from today’s launch event on Commerce’s flickr site.
