Get ’em while you can: WA set to run out of EV rebates next month

Less than two months in and Washington is fast running out of money for electric vehicle rebates.

The state Department of Commerce’s instant rebate program, offering people thousands to spend on new and used electric vehicles, was expected to continue into the spring, said Steven Hershkowitz, director of the Clean Transportation Program. But at this pace it’s set to run out of cash next month. 

So grab rebates while you still can.

Electric vehicle sales are ticking up relatively slowly across the country, but Washington has a much higher adoption rate, particularly in King, Snohomish and Pierce counties. The vehicles — alongside hybrids — serve as a crucial component of the transition away from fossil fuels, their appeal perhaps increasing alongside high gas prices.

To date, the state has doled out more than 3,300 rebates, totaling more than half of the $45 million available through the program, Amelia Lamb, spokesperson for the Department of Commerce, said in a news release. About 90% of those who received a rebate said they could not have otherwise afforded the vehicles.

Particularly promising is the popularity of rebates for vehicle leases, said state Sen. Joe Nguyen, D-West Seattle. This approach offers a unique way of equitably supporting the adoption of electric vehicles, he said. 

More than two-thirds of the rebates granted went toward leases, Lamb said. The average rebate was $7,292.

The amounts available for new EVs are:

• State rebate to purchase or for a two- or three-year lease: $5,000
• State rebate for three-year-plus lease: $9,000
• Federal rebate to purchase select models: $7,500

Rebates for used EVs are:

• State rebate to purchase or for a two- or three-year lease: $2,500
• State rebate for three-year-plus lease: $2,500
• Federal rebate to purchase select models: $4,500

Washington is the first state to include low-cost leases into this type of program, said Michael Furze, assistant director for Commerce’s Energy Division. And the move has been a game-changer, he said. Its popularity indicates that leasing is the most effective way to speed the transition toward electric vehicles.

Program data from August shows that the average rebate recipient lives in a household making an annual income of $51,975, Lamb said.

But funding set aside from the state’s general fund is fast running out, Lamb said. The state Legislature next year could allocate millions more from the Electric Vehicle Incentive Account to continue the program.

Nguyen said there’s general interest in sending more funding, especially given the success already seen by the program. Those interested in the rebates can seek more information at waevinstantrebates.org.