Unprecedented EV sales and a lack of funding to keep up with them have brought the Oregon EV and plug-in hybrid rebates to a halt.
The Oregon Department of Environmental Quality (DEQ) recently announced that it is temporarily suspending the state’s Clean Vehicle Discount Program due to projections that the program will be oversubscribed in late spring. April 30 is the last day to buy or rent a vehicle that may qualify for a discount.
Nissan Leaf 2023
The program is funded annually from the Oregon Vehicle Privilege Tax, which includes both rebates as well as secondary costs such as administration and outreach, according to a DEQ press release. DEQ’s press release, adding that some of the funds were transferred from last year. Based on current electric vehicle sales volumes, the agency expects the current $15.5 million in rebates to run out over the next few months.
The state’s Clean Vehicle Discount Program was introduced in 2018, offering discounts ranging from $750 to $2,500 on new electric vehicles, plug-in hybrids, or electric motorcycles that qualify for a mechanical MSRP. copies under $50,000. The Upfront Component All people earning up to 400% of the federal poverty line are eligible for a discount of up to $5,000, meaning lower-income buyers can receive a discount of up to $5,000. up to $7,500 state in addition to any federal rebate they can claim.
The Oregon program has issued more than $71 million in rebates since its launch.
Kia Niro Plug-In Hybrid 2023
Oregon residents who buy or rent an EV, plug-in hybrid, or eligible electric motorcycle can still please discountand Oregon DEQ issued a Sponsorship page available to track the amount remaining for the 2023 rebate. Once funding is exhausted, applications will be placed on a waitlist for new funding for 2024. There is no waitlist for approved vehicles. purchased or rented after April 30; DEQ notes that those vehicles will not receive the state rebate.
DEQ notes that electric vehicles that are not part of the state’s program may still be eligible for federal tax credits, but that’s also no longer straightforward because of new rules enacted under the federal tax credits. Inflation Reduction Act (IRA). The rush to a rule change could actually exacerbate Oregon’s funding problem.
According to electric vehicle advocacy group Forth, there is some hope for the price drop to continue, if the Oregon Legislature is able to pass a state bill that would allocate an additional $30 million for the program, continuing through year 2025.
Oregon’s total annual EV rebate
“Oregon electric vehicle discounts are an important tool to combat climate change, protect families from unpredictable fuel costs, and build independence,” said Jeff Allen, chief executive officer of Forth. about energy. choose a clean electric car.
Electric vehicle sales were preloaded this year because of the Internal Revenue Service (IRS) instructions will cut the effect tax credits on certain U.S.-made electric vehicles down to $3,750 or less when issued. The IRS has promised that it will fast track new rulesbut that led to a strange sale and claim against people who wanted to get the full federal money when they could.
This isn’t the first time a state EV incentive program has run out of money due to strong demand. california make its EV incentives smaller in 2021, partly due to funding, and at the same time MSRP reduction and income limit.
The The US West Coast is now aligned, as part of California’s Advanced Clean Auto Regulations and an actual ban on plug-in ICE vehicles by 2035, with both Oregon and Washington pledging to join California. In the short term, however, it doesn’t look like Oregon will be able to use incentives as a tool to drive electric vehicle adoption further.
–wi-th report from Bengt Halvorson
