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Electric Vehicle Rebates

The Tennessee Department of Environment and Conservation’s Office of Energy Programs will offer a two-tiered rebate on qualifying electric vehicles that are purchased or leased and registered after June 15, 2015 in the State of Tennessee.

Electric vehicle dealerships will be responsible for providing the rebate to consumers after such funds are received from the State. The State will rebate $2,500 on zero-emission battery electric vehicles and $1,500 on plug-in hybrid electric vehicles sold or leased (with a three-year minimum lease term) by a Tennessee dealership to Tennessee residents, after a claim is filed by the dealership.

For the purposes of this rebate, battery electric vehicles are defined as fully electric, zero-emission vehicles that have an on-board electrical energy storage device that can be recharged from an external source of electricity. Plug-in hybrid electric vehicles have zero-emission vehicle range capability and an onboard electrical energy storage device that can be recharged from an external source of electricity. In general, plug-in hybrid electric vehicles can be driven using electricity, gasoline or both.

There is currently $682,500 available for this second iteration of the electric vehicle rebate program. The rebate program will go into effect for vehicle purchases or leases made after June 15, 2015. Rebates will be dispersed on a first-come, first-served basis, and the program will remain active until funds are exhausted.

NOTE: The forms required to apply for the electric vehicle rebate program are in the final stages of approval and will be added to this website in the coming days.

The two forms must be filled out by dealerships and sent to alexa.voytek@tn.gov, along with supporting documentation, in order to apply for a rebate.

FAQ:

1. Who can I contact if I have questions?

Alexa Voytek, Program Manager, TDEC Office of Energy Programs, alexa.voytek@tn.gov, 615-532-0238

2. What vehicles are eligible for the program?

The following vehicles are eligible to qualify for a rebate:

Battery electric vehicles (BEV) $2,500 Rebate

  • BMW i3 or i3 Rex
  • Chevrolet Spark EV
  • Fiat 500e
  • Ford Focus Electric
  • Honda Fit EV
  • Mercedes-Benz B-Class Electric Drive
  • Mitsubishi i-MiEV
  • Nissan LEAF
  • smartED and Electric Fortwo
  • Tesla Model S
  • Toyota RAV4 EV
  • Volkswagen e-Golf

Plug-in hybrid electric vehicles (PHEV) $1,500 Rebate

  • BMW i8
  • Cadillac ELR
  • Chevrolet Volt
  • Ford CMAX Energi
  • Ford Fusion Energi
  • Honda Accord Plug-in
  • Porsche 918 Spyder
  • Porsche Cayenne S E-Hybrid
  • Porsche Panamera S E-Hybrid
  • Toyota Prius Plug-in Hybrid

3. Are leased vehicles eligible for the program?

Yes, with a minimum lease term of 3 years.

4. Are there any federal tax incentives for electric vehicles?

Battery electric vehicles and plug-in hybrid electric vehicles purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit varies based on the battery capacity of the vehicle in question. For more information, visit: http://www.fueleconomy.gov/feg/taxcenter.shtml

5. How do I apply for the rebate?

Electric vehicle dealerships will be responsible for submitting the rebate application and providing the rebate to consumers after such funds are received from the State.

In order to apply for the rebate, dealerships should:

  • Complete the Claim for Rebate form;
  • Complete the Schedule for Rebate Claim form;
  • Collect the necessary supporting documentation:
    • Copy of consumer’s Tennessee driver’s license or other form of proof of Tennessee residency;
    • Copy of Official Vehicle Registration form (submitted and finalized either by the dealership or consumer in conjunction with the local county clerk’s office);
    • Copy of lease contract if vehicle is being leased.
  • Email the above forms and documentation to alexa.voytek@tn.gov.

6. What supporting documentation is required to apply for the rebate?

  • Copy of Tennessee driver’s license or other form of proof of Tennessee residency;
  • Copy of Official Vehicle Registration form (submitted and finalized either by the dealership or consumer in conjunction with the local county clerk’s office);
  • Copy of lease contract if vehicle is being leased.

7. What are the applicant requirements?

The applicant must be a Tennessee resident. Commercial entities, government agencies, non-profits, and corporations are not eligible for a rebate.

8. What if I purchased or leased my vehicle before June 15, 2015?

Only vehicles purchased or leased after June 15, 2015 are eligible for the Tennessee rebate.

9. What is required for a vehicle to be eligible for a rebate?

  • The vehicle must be new and manufactured by the original equipment manufacturer (OEM) or its authorized licensee;
  • The vehicle must be purchased or leased after June 15, 2015;
  • The vehicle must be purchased or leased in the State of Tennessee, by a licensed Tennessee dealership;
  • Any leased vehicles must have three year minimum lease terms;
  • The vehicle can be found on the qualifying list of electric vehicles for the State of Tennessee rebate program;
  • The vehicle must be propelled to a significant extent by an electric motor which draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity.

10. Can I purchase the vehicle out of state?

The vehicle must be purchased within the State of Tennessee, from a licensed Tennessee dealership.

11. Is there a deadline to apply?

Rebates will be dispersed on a first-come, first-served basis, and the program will remain active until funds are exhausted.

12. Is the rebate taxable income?

It shall be the sole responsibility of the recipient, individually, to seek professional advice and determine the tax consequences of this rebate.

13. How do I know if rebate funds are still available?

This website will be updated on a bi-weekly basis to reflect the remainder of funds available.