Washington State has launched the EV Instant Rebate Program to get lower-income drivers into electric vehicles, with over 3,300 state residents participating in less than 60 days since the program began. With more than half of the available funding already utilized, the program allows participants to own or lease an EV for as low as $100 per month, three times higher than expected. The initiative started with $45 million allocated from the state’s general fund and is anticipated to run out of cash by October. The program’s success is attributed to the ability to apply rebates to car leases, with two-thirds of participants opting for this approach.
The average rebate amount so far is $7,292, benefiting households earning $51,975 annually, with 90% of participants stating they could not have afforded an EV without the rebate. Washington state has been a champion for EV adoption, with a mandate for all new vehicles sold to be zero carbon emissions by 2035. While the program has been effective, critics argue that there are more cost-effective ways to achieve similar climate benefits, such as certified carbon offsets. Commerce has calculated that for every $1 spent on the rebate program, there will be $2.84 in benefits over five years, including social cost savings from avoided carbon emissions, improved health outcomes, fuel savings, and vehicle cost savings.
The rebate program is exclusive to Washington residents, with income eligibility dependent on household size. New EVs are eligible for rebates of $5,000 for purchase or two-year lease, or $9,000 for a three-year lease, while used EVs qualify for a $2,500 rebate for purchases and leases of two years or longer. Vehicles priced at $90,000 or less are eligible for the rebate, with additional discounts available for state sales tax and federal tax rebates based on the vehicle’s price and manufacturer. Funding for rebates comes from the state general fund’s Electric Vehicle Incentive Account, with $65 million still available for future incentives.
Washington officials expect to issue a total of 6,000 rebates before the current funds are exhausted, emphasizing that vehicles are being purchased at a faster rate than anticipated. The program aims to drive EV adoption and reduce carbon emissions significantly, aligning with the state’s environmental goals. Participants have praised the initiative for making EV ownership more accessible and affordable, with many expressing gratitude for the rebate that enabled them to make the switch to electric vehicles. As the program nears its funding limit, drivers are encouraged to take advantage of the rebates before they run out.
