TAX REBATE OF $9,000 AVAILABLE TO MILLIONS OF AMERICANS
Making the switch from a gas to an electric vehicle is about to become considerably cheaper for those living in Washington thanks to a new tax rebate.
Tax rebates worth up to $9,000 will become available in August 2024 for those planning to purchase an electric vehicle in the northeastern state. The Washington EV Instant Rebate program will open for car buyers who meet certain income requirements on new and used electric vehicles.
Up to $45 million will be spent by Washington's Department of Commerce on funding the program, which will expire in June 2025 or when the financing runs out, according to a report by The Seattle Times. Newsweek has contacted the department for comment via email outside of normal working hours.
How Does the Tax Rebate Work?
The rebate is targeted at low-income Washingtonians who may be looking to change their vehicle. The income cap is set at $45,180 annually for a single person, or $93,600 for a family of four, and prospective buyers must have a credit score that qualifies for any lease deal on offer. The median household income for Washington is $91,306, according to 2022 statistics recorded by the U.S. Census Bureau.
Then, buyers need to choose an EV and give the dealer proof of their income. The rebate is instant, meaning it is applied at the point of purchase.
Up to $9,000 will be taken off the price for a new EV lease of three years or more. For those purchasing on two-year leases, up to $5,000 is available. Used EVs are also eligible for a $2,500 rebate on both purchases and leases. Vehicles must be fully battery-electric and be worth below $90,000.
The rebate can make monthly lease repayments less than $100 per month, according to the state's Department of Commerce.
An example from the state's Department of Commerce states: "A dealer is advertising a three-year lease at $239 per month with $1,999 due at signing—for a total lease cost of $10,364 ($1,999 + $239 x 35 months). For the qualifying customer, a $9,000 state EV Instant Rebate brings the lease cost down to $1,364. The dealer applies a $500 lease fee, $200 documentation fee, and collects state and local transit, title and registration fees of $734, making the final lease total $2,798, or $78 per month over the 36-month agreement."
Washington has previously made steps to reduce its carbon emissions through funding the public's transition to electric vehicles. In 2019, sales and use tax exemption was reinstated for the sales of vehicles powered by electricity, as well as certain plug-in hybrids.
"Washington state is already a leader in EV adoption, but many more people interested in ditching the gas pump may think they can't afford to do it," Governor Jay Inslee said in a press release on April 23. "With these new rebates, we're significantly lowering the entry point, opening the door to EVs for people of modest incomes as we continue paving the way to a clean transportation future for all."
Washington State Department of Commerce director Mike Fong said the rebate is necessary to encourage motorists to reduce greenhouse emissions. "It is important that people who live in our most-impacted communities, which tend to be urban and lower income, have access to cleaner transportation options, including the choice of EV ownership," he said. "These rebates can help many more people all across the state buy or lease an EV."
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2024-04-29T14:06:02Z dg43tfdfdgfd
