How the Oregon Rebate for Electric Cars Works

If you’re an Oregonian and thinking about an electric car, you may want to wait a bit as a bill is about to be signed into law that will establish a rebate of up to $2,500 for electric vehicles sold in the state. This rebate can be had in addition to the $7,500 federal tax credit for EVs, which means Oregonians can get up to $10,000 off an electric vehicle!

The bill also establishes an additional rebate of up to $2,500 for low to moderate income Oregon residents, who can then collectively save up to $12,500 on a qualifying electric vehicle. The rebate program will go into effect in early October 2017.

Which electric vehicles qualify for the rebate

A qualifying vehicle for the new Oregon rebate must:

• Have a base manufacturer’s suggested retail price of less than $50,000
• Be covered by a manufacturer’s express warranty on the vehicle drive train, including the battery pack, for at least 24 months from the date of purchase
• Be either a battery electric vehicle OR a plug-in hybrid vehicle that has at least 10 miles of EPA-rated all-electric range and warranty of at least 15 years and 150,000 miles on emission control components.
  1. $2,500 goes to vehicles with battery capacities above 10 kWh.
  2. $1,500 goes to vehicles with a battery capacity of 10 kWh or less.
• Be a new vehicle, or used only as a dealership floor model or test-drive vehicle
• The rebate will apply to new electric vehicles that are purchased or leased, with a minimum 24-month lease term.

How the electric vehicle rebate will be given

• Send in your rebate application within 6 months of buying the vehicle or starting the vehicle lease.
• You may need to send it to the Oregon Department of Environmental Quality, or a third party non-profit. The application details have not yet been released.
• The rebate will “attempt” to be issued within 60 days of receiving the application (the bill says attempt).

Additional rebates for low-income Oregonians (aka charge ahead rebate)

Ideally, EV rebate programs should provide additional financial assistance to low-income drivers. Low-income households typically spend more on transportation than higher earners, and transportation can comprise up to 30 percent of low-income household budgets. So, being able to save on transportation fuel and vehicle maintenance by choosing an electric vehicle can mean even more to low-income households in Oregon and beyond.

Fueling an electric vehicle in Oregon is like paying the equivalent of $0.97 for a gallon of gasoline. In addition, battery electric vehicles have fewer moving parts and don’t require oil changes, so electric vehicle maintenance costs have been estimated to be 35 percent lower than comparable gasoline vehicles.  The eGallon price is calculated using the most recently available state by state residential electricity prices. The state gasoline price above is either the statewide average retail price or a multi-state regional average price reported by EIA. The latest gasoline pricing data is available on EIA’s webpage. Find out more at www.energy.gov/eGallon.

How the Oregon charge ahead rebate works

• Have a household income less than or equal to 80 percent of the area median income (low income) or between 80 and 120 percent of area median income (moderate income).
  1. Area median income is defined by the Oregon Housing and Community Services Department and is tied to the closest metropolitan area in Oregon.
• Live in an area of Oregon that has elevated concentrations of air contaminants commonly attributed to motor vehicle emissions.
• Retire or scrap a gas-powered vehicle that has an engine that is at least 20 years old AND replace that vehicle with an electric vehicle.
• The electric vehicle can be used or new.
• Send in an application to the Oregon Department of Environmental Quality or third party non-profit. Details are still be worked out.
• Get up to an additional $2,500 in rebate off the electric vehicle.

How the Oregon electric vehicle rebate is funded

These rebates are being established as part of a broader transportation package, so the funding mechanisms in the bill are being levied not only for electric vehicles but also for maintaining Oregon’s roads, bridges, and tunnels and other transportation projects.

Beginning in 2020, electric vehicles will be subject to greater titles and registration fees in Oregon, expected to be about $110.

Oregon will also pay for road work with a 4 percent gas tax, increasing incrementally up to 10 cents by 2024. The bill also enforces a $16 vehicle registration fee, a 0.1 percent payroll tax, and 0.5 percent sales tax on new vehicles.

The bill additionally allows Oregon to introduce rush-hour congestion roadway tolls. Cyclists aren’t off the hook, either. Adult bicycles (defined as bikes with wheels at least 26 inches in diameter) over $200 will be subject to a $15 excise tax. These funds will go toward grants for bicycle and pedestrian transportation projects.

Overall, the electric vehicle rebate fund will be at least $12 million annually, though other monies, like donations, can be deposited into the fund too. $12 million is enough cash for 4,800 full $2,500 rebates each year.

Oregon residents bought 1,969 new pure EVs and 1,506 new PHEVs in 2016, so there’s still a good amount of room for this rebate to help grow the Oregon electric vehicle market. Overall, this is a wonderful program that will both help increase electric vehicle sales in Oregon and help expand the benefits of driving on electricity to those who need it the most.