The DRIVE EV program in Rhode Island offers rebates for residents who purchase electric or hybrid vehicles, ranging from $1,500 to $2,500 for new vehicles and $750 to $1,500 for used vehicles, based on a report by The US Sun on December 22, 2022.
The program is available for certain brands and has price limits for new and used vehicles. It aims to reduce greenhouse gas emissions and combat climate change.
The rules for rebates under the Inflation Reduction Act have recently changed, according to Congress. The rebates are now based on consumer income and price limits. To be eligible for the maximum rebate of $7,500, individuals must have an adjusted gross income of $150,000 or less, according to The US Sun.
There are higher limits for head-of-household filers and joint filers. There are also price limits for eligible vehicles, with an $80,000 limit for vans, SUVs, and pickup trucks and a $55,000 limit for other vehicles. The sales cap on electric or plug-in hybrid vehicles has been removed.
A published report by CNBC on August 10, 2022, states that the rebates for used electric cars are worth up to $4,000 and have income, price, and vehicle age requirements. To qualify, a consumer’s modified adjusted gross income must be less than $150,000 for married couples or $75,000 for single filers; the sale price of the car cannot exceed $25,000; the car must be at least two years old, and the credit can only be claimed once every three years.
Starting on January 1, 2024, car dealerships will be able to offer the $7,500 rebate as an upfront discount. The DRIVE EV program has already distributed nearly half a million dollars in rebates since this summer.
According to the program, 23 electric vehicles meet the new requirements introduced in the IRA. Several states are also offering their own rebates in addition to federal ones.