Create a purchase credit for new Electric Vehicles and Hybrid Vehicles

 

To encourage the purchase and adoption of Electric and Hybrid Powertrain automobiles

 

 

In order to push for a greener future for Minnesota, the state must encourage the adoption of lower emission or no

emissions vehicles. However due to the higher average cost, a temporary subsidy credit would be offered to encourage the

the adoption of BEV’s, REEV, PHEV, and HEV’s

BEV-REx-PHEV Credits:

New: $7,500

HEV Credits

New: $4,000

Used: $2,000

 

 

Battery Electric Vehicles (BEVs): run entirely on electricity stored in a large rechargeable battery pack and have no

internal combustion engine or tailpipe. They must be plugged into an external power source to charge.

Range-Extended Electric Vehicle (REEV): and electric vehicle where all motive power comes from an electric motor, but it

includes an onboard internal combustion engine that acts purely as a generator to charge the battery when needed. There

is no mechanical link between the engine and the wheels; the engine's only job is to produce electricity.

Plug-in Hybrid Electric Vehicles (PHEVs): These vehicles combine an electric motor and a gasoline engine. They have a

larger battery than a traditional hybrid and can be plugged into an external power source to recharge, allowing them to

operate in all-electric mode for a limited range (typically 10-60 miles) before the gas engine takes over.

Hybrid Electric Vehicles (HEVs): These vehicles use a gas engine and an electric motor to improve fuel efficiency.

However, they cannot be plugged in; their batteries are charged internally through regenerative braking and the gas

engine itself, and do not classify as an “electric vehicle” under this bill.

 

 

A 0.25% per bracket increase would generate the approximate 450 million dollars a year to fund the program

 

This credit has no penalties, but the buyer must claim it manually or it will not be issued.

The credit will be available until a combination of BEV, REEV, and PHEV sales make up at minimum 50% of car sales in the

state off Minnesota for two consecutive years.

 

1st of January, 2028