Summary
– The Oregon Clean Vehicle Rebate program closed temporarily in 2023 due to funding issues
– A surge in EV purchases led to the reopening of the rebate program for 2 months in 2024
– Funding for rebates from the state is collected through taxes from dealerships
– Oregon has one of the highest rates of EV sales in the nation
– Buyers purchasing or leasing eligible electric vehicles could receive federal tax credits if they missed the state rebate opportunity
Article
The Oregon Clean Vehicle Rebate program reopened this spring after running out of funding in May 2023. The program closed on June 3, but due to high demand, funding is expected to run out ahead of the deadline. The rebates have had a significant impact on EV sales, with dealerships reporting a surge in new EV purchases during the rebate period. The rebates range from $2,500 to $7,500, making electric vehicles more affordable for Oregonians.
In the first quarter of 2023, over 16% of new vehicle sales in Oregon were electric vehicles, the second-highest rate in the nation. The Oregon Department of Energy reported that there were 84,865 zero-emission vehicles in Oregon as of December 2023. The program was paused last year due to surging sales and depleted funds, which led to the closure of the program on May 1, 2023.
Despite the closure and limited availability of rebates, buyers who purchased EVs during the open window this year may still be eligible for refunds if the taxes collected by Oregon dealerships are higher than expected. The federal government also offers a $7,500 tax credit for new, eligible electric vehicle purchases or leases, with an additional $4,000 for eligible used electric vehicles. More than 20,000 EV buyers missed out on the Oregon rebate due to funding shortages.
Oregon’s Clean Vehicle Rebate program is funded through the state vehicle privilege tax collected by dealerships. The program has a base funding of $12 million per year, which can increase if tax collections exceed that amount. The Oregon Department of Environmental Quality received over $15 million in funds in 2023, with an additional $3.5 million in carryover funds. However, this year, only $7.9 million is available for EV rebates.
DEQ has applied for an EPA grant to fund a portion of the Charge Ahead Rebate program, which is aimed at helping lower-income households afford cleaner transportation choices. The agency is constantly updating available rebate funding on its website to keep applicants informed. Applications for rebates must be submitted within six months of taking possession of the vehicle, with the waitlist prioritized when funding is replenished.
Oregon’s Clean Vehicle Rebate offers rebates ranging from $750 to $7,500 based on the type of vehicle and buyer income level. The Charge Ahead Rebate provides higher rebates for low to moderate-income Oregonians, with income limits set at below 400% of the federal poverty guideline. The program has helped make electric vehicles more accessible to a broader range of consumers. Applicants can visit the DEQ site for more information on the rebate program.
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