Vermont EV Incentives 2026
Vermont offers a $5,000 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.
Vermont EV Incentive Programs
State Rebate / Tax Credit
$5,000Vermont MileageSmart EV Incentive: up to $5,000 for new BEV. Income-based tiers. Apply through Drive Electric Vermont.
Utility Rebates
Green Mountain Power offers up to $400 EV charger rebate.
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
Ended Sept 30, 2025. Not available for 2026 purchases.
Also ended Sept 30, 2025.
If you bought before October 1, 2025, file IRS Form 8936 to claim your credit.