Thinking about going electric in the Green Mountain State? You’ve probably heard about Vermont EV tax credits, but the truth in 2025 is a bit more complicated. While Vermont no longer offers a statewide EV tax credit, there are still thousands of dollars in potential savings through utility rebates and the federal EV tax credit. In this guide, we’ll break down exactly what’s available, how to qualify, and how to stack incentives for maximum value.
Do Vermont EV Tax Credits Still Exist?
As of 2025, Vermont does not have an active state-level EV tax credit. The statewide incentive program, which once offered up to $5,000 for eligible buyers, has ended due to exhausted funding. Purchases made after October 8, 2024 are no longer eligible for that program.
But don’t give up yet — there are still multiple ways to cash in on Vermont EV tax credits through your local electric utility and federal programs.
Utility Rebates: The Real Vermont EV Incentives in 2025
While the state credit is gone, Vermont’s electric utilities continue to offer significant rebates:
Burlington Electric Department (BED)
- New all-electric vehicle: $2,300 ($3,000 for income-qualified)
- High-mileage drivers: Up to $3,750 total
- Used EVs & plug-in hybrids: $1,300 – $3,050 depending on model and income
- Home charger rebate: Up to $1,000 with vehicle purchase
Green Mountain Power (GMP)
- New EV: $2,200 | Used EV: $1,500
- Income-qualified bonus: +$1,000
- Free Level 2 charger with enrollment in GMP’s charging program
Vermont Electric Co-op (VEC)
- New or used EV: $500 base rebate (+$500 for income-qualified)
- Free Level 2 charger for members
VPPSA Municipal Utilities
- New EV rebate: $1,250
- Used EV rebate: $500 (+$400 for income-qualified customers)
💡 Tip: These rebates often stack with the federal EV tax credit — meaning you could save $8,000–$11,000 or more.
Federal EV Tax Credit in Vermont
Even though there’s no state tax credit, Vermont EV buyers can still qualify for the federal Clean Vehicle Credit:
- New EV: Up to $7,500
- Used EV: Up to $4,000
- Eligibility rules: Income limits, MSRP caps, and vehicle assembly requirements apply
- Time-sensitive: Federal EV credits are scheduled to expire on September 30, 2025
How to Maximize Your Vermont EV Savings
- Check your utility first — see which rebate you qualify for.
- Verify federal credit eligibility — ensure the EV meets assembly and sourcing requirements.
- Stack incentives — combine utility rebates, federal credit, and any dealer discounts.
- Install a home charger — take advantage of free or discounted Level 2 chargers from utilities.
Example:
An income-qualified Burlington Electric customer buying a new EV in 2025 could get:
- $3,000 utility rebate
- $7,500 federal credit
Total savings: $10,500 (plus free/discounted charger).
Why Vermont EV Tax Credits Still Matter for Shoppers
Even without a state credit, the term Vermont EV tax credits is still highly relevant — because it captures all available programs that reduce the cost of going electric. For many buyers, these incentives are the difference between stretching their budget and driving away in a brand-new EV.
Final Thoughts on Vermont EV Tax Credits in 2025
- No state-level credit right now — but strong utility rebates and federal credits remain.
- Potential combined savings: $8,000–$11,000+.
- Federal credit expires Sept 30, 2025 — act soon to lock in savings.
👉 Ready to claim your Vermont EV tax credits? Check your eligibility here and compare the latest EV deals today. The sooner you start, the more you’ll save before programs expire.
