What EV incentives are available in Minnesota in 2026?

Minnesota offers a $2,500 state incentive. Minnesota EV Rebate: up to $2,500 for new BEV. Income limit of $150K single / $225K joint. Apply through MNcleancar.org. The OBBBA car loan interest deduction (up to $10,000/year through 2028) is available for all US-assembled vehicles, including EVs.

Is the federal EV tax credit available in Minnesota in 2026?

The federal clean vehicle tax credit ended for vehicles acquired after September 30, 2025. Minnesota residents purchasing a qualifying EV before that date can still claim the credit. The OBBBA car loan interest deduction (up to $10,000/year through 2028) replaced it — this applies to all vehicles assembled in the US, including EVs.

What is the electricity rate for EV charging in Minnesota?

Minnesota's residential electricity rate is 14.3¢/kWh. At that rate, charging an EV 12,000 miles/year costs roughly $452. See the full Minnesota EV charging cost breakdown for details.

Minnesota EV Incentives 2026

Minnesota offers a $2,500 state incentive for EV buyers in 2026. The federal EV tax credit ended Sept 30, 2025, but state programs are independent and still active. The OBBBA car loan interest deduction (up to $10,000/yr) also applies.

$2,500

State Rebate

$10K/yr

OBBBA Interest Deduction

14.3¢

Electricity Rate (kWh)

Minnesota EV Incentive Programs

State Rebate / Tax Credit

$2,500

Minnesota EV Rebate: up to $2,500 for new BEV. Income limit of $150K single / $225K joint. Apply through MNcleancar.org.

OBBBA Car Loan Interest Deduction (All States)

The One Big Beautiful Bill Act created a new above-the-line tax deduction for interest on auto loans for American-assembled vehicles — gas or electric.

• Deduct up to $10,000/year in loan interest
• Available through 2028
• Vehicle must be assembled in the US
• No income cap

Example: 7% interest on a $40K loan → ~$2,800 deductible in year one. At 22% tax bracket: ~$616 in real savings.

Federal EV Credit Status

✗

$7,500 new EV credit (Section 30D)

Ended Sept 30, 2025. Not available for 2026 purchases.

✗

$4,000 used EV credit (Section 25E)

Also ended Sept 30, 2025.

✓

Pre-Oct 2025 purchases still qualify

If you bought before October 1, 2025, file IRS Form 8936 to claim your credit.

EV Incentives in Other States

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Related for Minnesota

Charging Costs in Minnesota Cost Per Mile in Minnesota All State Incentives