Vermont is testing a new trade-in program to encourage residents to switch from gas powered vehicles to electric vehicles EVs. What Happened: The Green Mountain State announced a new trade-in incentive program called Replace Your Ride. It wants to incentivize residents to switch to EVs.
California is working towards a future of no gas-powered vehicles, as a result of the move.
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The Inflation Reduction Act could give incentives to U.S. residents for buying new electric vehicles.
The first phase of Vermont's program is intended to help lower-income residents replace their old gas-powered light-duty vehicles, according to Electrek. The vehicles must have a suggested retail price of $40,000 or less for plug-in hybrid models and $45,000 or less for electric vehicles.
The incentive for getting electric vehicles can be stacked with existing incentives.
Why It s Important: Vermont transportation secretary Joe Flynn praised the move as helping cut the state's carbon emissions.
The transportation sector is responsible for about 40% of Vermont's carbon emissions. The state is working to reduce emissions by giving incentives for Vermonters to switch to cleaner transportation options, and allowing those incentives to be combined with existing state and local utility programs for even greater cost-savings, Flynn said.
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Vermont is funding the Replace Your Ride initiative with $4.5 million allocated from transportation bills in 2021 and 2022.
Vermont is the second state to launch a gas-powered replacement incentive plan after California launched a similar plan for several regions of the state.
The Tesla Inc. TSLA, which has no dealerships in the state of Vermont, is not on the list. Tesla would not be included in the incentive plan from the state, which would result in a fall in the price range of the vehicles included in the incentive plan.
According to a study by USA Today, Vermont was ranked ninth of all 50 states for the most electric vehicle charging stations per electric vehicle registered in the state.
Vermont could be ahead of the other states in moving the push for clean energy due to the number of charging stations and the new electric vehicle rebate plan.