The Vermont Statutes Online

Title 19: Highways

Chapter 029: Vehicle Incentive Programs

• § 2901. Definitions

  As used in this chapter:

  (1) “Adaptive electric cycle” means an electric bicycle or an electric cargo bicycle that has been modified to meet the physical needs or abilities of the operator or a passenger.

  (2) “Electric bicycle” has the same meaning as in 23 V.S.A. § 4(46)(A).

  (3) “Electric cargo bicycle” means a motor-assisted bicycle, as defined in 23 V.S.A. § 4(45)(B)(i), with an electric motor, as defined under 23 V.S.A. § 4(45)(B)(i)(II), that is specifically designed and constructed for transporting loads, including at least one or more of the following: goods, one or more individuals in addition to the operator, or one or more animals. A motor-assisted bicycle that is not specifically designed and constructed for transporting loads, including a motor-assisted bicycle that is only capable of transporting loads because an accessory rear or front bicycle rack has been installed, is not an electric cargo bicycle.

  (4) “Plug-in electric vehicle (PEV),” “battery electric vehicle (BEV),” and “plug-in hybrid electric vehicle (PHEV)” have the same meanings as in 23 V.S.A. § 4(85). (Added 2023, No. 62, § 19, eff. July 1, 2023.)

• § 2902. Incentive Program for New Plug-In Electric Vehicles

  (a) Creation; administration.

  (1) There is created the Incentive Program for New Plug-In Electric Vehicles (PEVs), which shall be administered by the Agency of Transportation.

  (2) Subject to State procurement requirements, the Agency may retain a contractor or contractors to assist with marketing, program development, and administration of the Program.

  (b) Program structure. The Incentive Program for New PEVs shall structure PEV purchase and lease incentive payments by income to help all Vermonters benefit from electric driving, including Vermont’s most vulnerable. Specifically, the Incentive Program for New PEVs:

  (1) shall apply to both purchases and leases of new PEVs with an emphasis on incentivizing the purchase and lease of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) with an electric range of 20 miles or greater per complete charge as rated by the Environmental Protection Agency when the vehicle was new;

  (2) shall provide not more than one incentive of not more than $3,000.00 for a PEV, per individual per year, to:

  (A) an individual domiciled in the State whose federal income tax filing status is single with an adjusted gross income under the laws of the United States greater than $60,000.00 and at or below $100,000.00;

  (B) an individual domiciled in the State whose federal income tax filing status is head of household with an adjusted gross income under the laws of the United States greater than $75,000.00 and at or below $125,000.00;

  (C) an individual domiciled in the State whose federal income tax filing status is surviving spouse with an adjusted gross income under the laws of the United States greater than $90,000.00 and at or below $150,000.00;

  (D) an individual who is part of a married couple with at least one spouse domiciled in the State whose federal income tax filing status is married filing jointly with an adjusted gross income under the laws of the United States greater than $90,000.00 and at or below $150,000.00; or

  (E) an individual who is part of a married couple with at least one spouse domiciled in the State and at least one spouse whose federal income tax filing status is married filing separately with an adjusted gross income under the laws of the United States greater than $60,000.00 and at or below $100,000.00;

  (3) shall provide not more than one incentive of not more than $6,000.00 for a PEV, per individual per year, to:

  (A) an individual domiciled in the State whose federal income tax filing status is single with an adjusted gross income under the laws of the United States at or below $60,000.00;

  (B) an individual domiciled in the State whose federal income tax filing status is head of household with an adjusted gross income under the laws of the United States at or below $75,000.00;

  (C) an individual domiciled in the State whose federal income tax filing status is surviving spouse with an adjusted gross income under the laws of the United States at or below $90,000.00;

  (D) an individual who is part of a married couple with at least one spouse domiciled in the State whose federal income tax filing status is married filing jointly with an adjusted gross income under the laws of the United States at or below $90,000.00; or

  (E) an individual who is part of a married couple with at least one spouse domiciled in the State and at least one spouse whose federal income tax filing status is married filing separately with an adjusted gross income under the laws of the United States at or below $60,000.00;

  (4) shall, as technology progresses, establish a minimum electric range in order for a PHEV to be eligible for an incentive;

  (5) shall apply to:

  (A) manufactured PEVs with any base Manufacturer’s Suggested Retail Price (MSRP) that will be issued a special registration plate by the Commissioner of Motor Vehicles pursuant to 23 V.S.A. § 304a or will predominately be used to provide accessible transportation for the incentive recipient or a member of the incentive recipient’s household, provided that the incentive recipient or the member of the incentive recipient’s household has a removable windshield placard issued by the Commissioner of Motor Vehicles pursuant to 23 V.S.A. § 304a;

  (B) manufactured PHEVs with a base MSRP as determined by the Agency of Transportation and meeting the following requirements:

  (i) shall not exceed a base MSRP of $55,000.00;

  (ii) shall phase out incentives for PHEVs with an electric range of less than 20 miles as rated by the Environmental Protection Agency when the vehicle was new; and

  (iii) shall be benchmarked to a base MSRP of the equivalent of approximately $50,000.00 or less in model year 2023; and

  (C) manufactured BEVs with a base MSRP as determined by the Agency of Transportation and meeting the following requirements:

  (i) shall not exceed a base MSRP of $55,000.00; and

  (ii) shall be benchmarked to a base MSRP of the equivalent of approximately $50,000.00 or less in model year 2023; and

  (6) shall provide incentives that may be in addition to any other available incentives, including through another program funded by the State, provided that not more than one incentive under the Incentive Program for New PEVs is used for the purchase or lease of any one PEV.

  (c) Administrative costs. Up to 15 percent of any appropriations for the Incentive Program for New PEVs may be used for any costs associated with administering and promoting the Incentive Program for New PEVs.

  (d) Outreach and marketing. The Agency, in consultation with any retained contractors, shall ensure that there is sufficient outreach and marketing, including the use of translation and interpretation services, of the Incentive Program for New PEVs so that Vermonters who are eligible for an incentive can easily learn how to secure as many different incentives as are available, and such costs shall be considered administrative costs for purposes of subsection (c) of this section. (Added 2023, No. 62, § 19, eff. July 1, 2023.)

• § 2903. MileageSmart

  (a) Creation; administration.

  (1) There is created a used high fuel efficiency vehicle incentive program, which shall be administered by the Agency of Transportation and known as MileageSmart.

  (2) Subject to State procurement requirements, the Agency may retain a contractor or contractors to assist with marketing, program development, and administration of MileageSmart.

  (b) Program structure. MileageSmart shall structure high fuel efficiency purchase incentive payments by income to help all Vermonters benefit from more efficient driving and reduced greenhouse gas emissions, including Vermont’s most vulnerable. Specifically, MileageSmart shall:

  (1) apply to purchases of used high fuel-efficient motor vehicles, which for purposes of this program shall be pleasure cars with a combined city/highway fuel efficiency of at least 40 miles per gallon or miles-per-gallon equivalent as rated by the Environmental Protection Agency when the vehicle was new; and

  (2) provide not more than one point-of-sale voucher worth up to $5,000.00 to an individual who is a member of a household with an adjusted gross income that is at or below 80 percent of the State median income.

  (c) Administrative costs. Up to 15 percent of any appropriations for MileageSmart may be used for any costs associated with administering and promoting MileageSmart.

  (d) Outreach and marketing. The Agency, in consultation with any retained contractors, shall ensure that there is sufficient outreach and marketing, including the use of translation and interpretation services, of MileageSmart so that Vermonters who are eligible for an incentive can easily learn how to secure as many different incentives as are available, and such costs shall be considered administrative costs for purposes of subsection (c) of this section. (Added 2023, No. 62, § 19, eff. July 1, 2023.)

• § 2904. Replace Your Ride Program

  (a) Creation; administration.

  (1) There is created the Replace Your Ride Program, which shall be administered by the Agency of Transportation.

  (2) Subject to State procurement requirements, the Agency may retain a contractor or contractors to assist with marketing, program development, and administration of the Program.

  (b) Program structure. The Replace Your Ride Program shall structure incentive payments by income to help all Vermonters benefit from replacing lower efficient modes of transportation with modes of transportation that reduce greenhouse gas emissions. The Agency may apply a sliding scale incentive based on electric range, with larger incentives being available for PEVs with a longer electric range.

  (c) Incentive amount. The Replace Your Ride Program shall provide up to a $2,500.00 incentive for those who qualify under subdivision (d)(1)(A) of this section and up to a $5,000.00 incentive for those who qualify under subdivision (d)(1)(B) of this section, either of which may be in addition to any other available incentives, including through a program funded by the State, to individuals who qualify based on both income and the removal of an internal combustion vehicle. Only one incentive per individual is available under the Replace Your Ride Program.

  (d) Eligibility. Applicants must qualify through both income and the removal of an eligible vehicle with an internal combustion engine.

  (1) Income eligibility.

  (A) The lower incentive amount of up to $2,500.00 is available to the following, provided that all other eligibility requirements are met:

  (i) an individual domiciled in the State whose federal income tax filing status is single with an adjusted gross income under the laws of the United States greater than $60,000.00 and at or below $100,000.00;

  (ii) an individual domiciled in the State whose federal income tax filing status is head of household with an adjusted gross income under the laws of the United States greater than $75,000.00 and at or below $125,000.00;

  (iii) an individual domiciled in the State whose federal income tax filing status is surviving spouse with an adjusted gross income under the laws of the United States greater than $90,000.00 and at or below $150,000.00;

  (iv) an individual who is part of a married couple with at least one spouse domiciled in the State whose federal income tax filing status is married filing jointly with an adjusted gross income under the laws of the United States greater than $90,000.00 and at or below $150,000.00; or

  (v) an individual who is part of a married couple with at least one spouse domiciled in the State and at least one spouse whose federal income tax filing status is married filing separately with an adjusted gross income under the laws of the United States greater than $60,000.00 and at or below $100,000.00.

  (B) The higher incentive amount of up to $5,000.00 is available to the following, provided that all other eligibility requirements are met:

  (i) an individual domiciled in the State whose federal income tax filing status is single with an adjusted gross income under the laws of the United States at or below $60,000.00;

  (ii) an individual domiciled in the State whose federal income tax filing status is head of household with an adjusted gross income under the laws of the United States at or below $75,000.00;

  (iii) an individual domiciled in the State whose federal income tax filing status is surviving spouse with an adjusted gross income under the laws of the United States at or below $90,000.00;

  (iv) an individual who is part of a married couple with at least one spouse domiciled in the State whose federal income tax filing status is married filing jointly with an adjusted gross income under the laws of the United States at or below $90,000.00;

  (v) an individual who is part of a married couple with at least one spouse domiciled in the State and at least one spouse whose federal income tax filing status is married filing separately with an adjusted gross income under the laws of the United States at or below $60,000.00; or

  (vi) an individual who is a member of a household with an adjusted gross income that is at or below 80 percent of the State median income.

  (2) Vehicle removal.

  (A) In order for an individual to qualify for an incentive under the Replace Your Ride Program, the individual must remove an older low-efficiency vehicle from operation and switch to a mode of transportation that produces fewer greenhouse gas emissions. The entity that administers the Replace Your Ride Program, in conjunction with the Agency of Transportation, shall establish Program guidelines that specifically provide for how someone can show that the vehicle removal eligibility requirement has been, or will be, met.

  (B) For purposes of the Replace Your Ride Program:

  (i) An “older low-efficiency vehicle”:

  (I) is currently registered, and has been for two years prior to the date of application, with the Vermont Department of Motor Vehicles;

  (II) is currently titled in the name of the applicant and has been for at least one year prior to the date of application;

  (III) has a gross vehicle weight rating of 10,000 pounds or less;

  (IV) is at least 10 model years old;

  (V) has an internal combustion engine; and

  (VI) passed the annual inspection required under 23 V.S.A. § 1222 within the prior year.

  (ii) Removing the older low-efficiency vehicle from operation must be done by disabling the vehicle’s engine from further use and fully dismantling the vehicle for either donation to a nonprofit organization to be used for parts or destruction.

  (iii) The following qualify as a switch to a mode of transportation that produces fewer greenhouse gas emissions:

  (I) purchasing or leasing a new or used PEV;

  (II) purchasing a new or used bicycle, electric bicycle, electric cargo bicycle, adaptive electric cycle, or motorcycle that is fully electric, and the necessary safety equipment; and

  (III) utilizing shared-mobility services.

  (e) Administrative costs. Up to 15 percent of any appropriations for the Replace Your Ride Program may be used for any costs associated with administering and promoting the Replace Your Ride Program.

  (f) Outreach and marketing. The Agency, in consultation with any retained contractors, shall ensure that there is sufficient outreach and marketing, including the use of translation and interpretation services, of the Replace Your Ride Program so that Vermonters who are eligible for an incentive can easily learn how to secure as many different incentives as are available and such costs shall be considered administrative costs for purposes of subsection (e) of this section. (Added 2023, No. 62, § 19, eff. July 1, 2023.)

• § 2905. Annual reporting

  (a) The Agency shall annually evaluate the programs established under this chapter to gauge effectiveness and shall submit a written report on the effectiveness of the programs to the House and Senate Committees on Transportation, the House Committee on Environment and Energy, and the Senate Committee on Finance on or before the 31st day of January in each year following a year that an incentive was provided through one of the programs.

  (b) The report shall also include:

  (1) any intended modifications to program guidelines for the upcoming fiscal year along with an explanation for the reasoning behind the modifications and how the modifications will yield greater uptake of PEVs and other means of transportation that will reduce greenhouse gas emissions; and

  (2) any recommendations on statutory modifications to the programs, including to income and vehicle eligibility, along with an explanation for the reasoning behind the statutory modification recommendations and how the modifications will yield greater uptake of PEVs and other means of transportation that will reduce greenhouse gas emissions.

  (c) Notwithstanding 2 V.S.A. § 20(d), the annual report required under this section shall continue to be required if an incentive is provided through one of the programs unless the General Assembly takes specific action to repeal the report requirement. (Added 2023, No. 62, § 19, eff. July 1, 2023.)