Mayor, Burlington Electric Department, and Federal Partners Announce Increase in Electric Vehicle Incentives

Rebate Boost Will Help Offset Some Impacts from Expiration of Federal EV Tax Credits

Burlington, VT – Mayor Emma Mulvaney-Stanak and Burlington Electric Department (BED), joined by representatives from the offices of Sen. Bernie Sanders, Sen. Peter Welch, and Rep. Becca Balint, the Sierra Club Vermont, and fifth-graders from Champlain Elementary School, today announced a temporary increase to BED’s electric vehicle (EV) incentives to help offset the upcoming September 30, 2025 expiration of the federal tax credit for EV purchases, as set forth in the President’s recently-signed reconciliation bill. Despite the federal change, the Mayor and BED are continuing their commitment to the City’s Net Zero Energy goal and electrification strategy by sharing that BED will be boosting EV rebates on the purchase or lease of new EVs to $5,000, and $5,700 for income-qualified customers. These are increases from the current levels of $2,300 and $3,000, respectively. BED plans to make these boosted incentives available through the end of 2026 or as long as incentive funds remain, whichever comes first.

“Here in the City of Burlington, we are prepared to continue leading on clean energy and electrification efforts,” stated Mayor Emma Mulvaney-Stanak. “While the federal administration is reversing climate-forward policy and incentives across the board, this enhanced EV incentive from BED will continue to ensure Burlington residents are supported in making the switch to electric vehicles.”

 

New EV Rebate Levels

  • Only for EVs purchased or leased on or after October 1, 2025
  • Only for all-electric vehicles (not PHEVs)
  • Only for new vehicles, not used

“The president of the United States is directing the full regulatory, legal, and financial weight of the federal government towards helping his fossil fuel executive friends and donors get even richer at the expense of a healthy and habitable planet for our kids and grandkids,” stated Sen. Sanders. “I am glad that communities like Burlington are doing the opposite by increasing support for people who want to cut carbon emissions and their fuel and maintenance costs by switching to electric vehicles. We have got to continue the fight against climate change, with or without Donald Trump and his friends in Big Oil.”

“Vermont has long led the charge in the transition to clean energy and electrification, and it’s important that work continues,” stated Sen. Welch. “While some in Washington work to destroy climate-driven progress at every turn, these enhanced EV initiatives will help keep emissions down and encourage more Vermonters to drive electric.”

“As Republicans roll back climate incentives and resources, Vermont is stepping up,” stated Rep. Balint. “Clean energy is so important to Vermonters, and we won’t back down so easily. Burlington drivers who have made the switch are not only supporting our transition away from fossil fuels, but they’re seeing lower costs. I’m thankful that our state continues to lead in the fight for climate action.”

“Burlington Electric is excited to continue supporting our customers in making the transition from fossil fuel vehicles to EVs, despite the significant federal headwinds and the abrupt elimination of the federal EV tax credit,” said Darren Springer, BED General Manager. “Our team planned for this possibility at the start of the year and, with today’s announcement, Burlington drivers who make the switch to electric will benefit from our largest-ever rebate. Driving electric means lower emissions, cheaper costs per mile, and keeping more energy dollars in the local economy. We thank the Mayor, City Council, and Electric Commission for their continued support of our Net Zero Energy initiatives and rebate programs, our state partners for the policy support that makes these incentive programs possible, and our federal delegation for their efforts to continue to fight for climate action in Washington, D.C.”

“The Federal Administration’s retreat from the federal EV tax credit is robbing people of their choice to buy or lease electric vehicles that are good for our wallets, clean air, and the climate,” stated Robb Kidd, Vermont Chapter Director, Sierra Club. “The Sierra Club applauds Burlington Electric Department’s commitment to incentivizing clean transportation in the face of the federal U-turn on these popular tax credits. BED is making it possible for more of its customers to adopt transportation options that reduce air and climate pollution, rather than cowering to the President and his fossil fuel allies.”

Special guests at today’s announcement were 19 students from Ms. Aziza Malik’s fifth-grade class at Champlain Elementary School, who shared their thoughts on the importance of providing enhanced EV incentives.

Christina Moore stated: “You might be thinking, why do electric vehicle rebates matter to fifth-graders? Well, I want to grow up breathing clean air without smoke and pollution. I want Vermont winters to still have snow, and summers that aren’t too hot or smoky. I love our lakes, mountains, and forests, and I want kids like me to enjoy them too. Choosing electric vehicles instead of gas cars helps protect the things that make Vermont so special and beautiful. Every family deserves the chance to choose an electric vehicle.”

Kristian Overman-Smith stated: “We are proud to stand together today because this announcement about electric vehicle rebates isn’t just about cars. The truth is, the generations before us created most of the pollution, but they’re not the ones who will have to live through the hardest part of it. Our grandparents had a better world, but now it’s our turn to fix things and make it better. As kids, we already walk, bike, and scooter to school—but when families do need to drive, electric vehicles are the best choice. Still, they are expensive, and that’s why rebates are so important. It’s not fair if only wealthy families can afford cleaner cars. Rebates make it possible for everyone to do their part. Every kid deserves clean air and a safe climate.”

Michael Shapiro stated: “Today’s announcement is about our lives, our future, and the world we will grow up in. When I grow up, I want to live in a world where driving doesn’t hurt the planet. I want kids to play outside without worrying about asthma, smoky skies, or extreme weather. That’s why Burlington Electric Department’s rebate matters so much. By offering $5,000 or $5,700 for families who qualify, our City is helping make electric vehicles more affordable. I’m proud that Burlington is leading the way, because it shows we care about kids’ futures. And together, we believe our generation can make the world better.”

Boosted Rebates
The funds to be used for the boosted rebates are available through Act 44 of 2023 and Act 142 of 2024 – State of Vermont legislation that enables BED to utilize a portion of its efficiency funds and Thermal Energy Process Fuel (TEPF) funds to bolster electrification programs. As part of its 2025 planning, BED had reserved funds to increase EV incentives in the event the federal government ended its support for EVs. BED also has worked collaboratively with the Vermont Department of Public Service to include support for rental weatherization policy implementation in its updated plan for use of the TEPF funds, which was submitted via letters and updates to the Vermont Public Utility Commission on June 18, 2025, August 14, 2025, and most recently August 29, 2025.

Helping All Burlingtonians, Saving with Off-Peak Charging, Expanding EV Charging Network
Since launching BED’s EV and PHEV incentives in 2017, 22.6 percent of BED’s EV rebates have been issued to income-qualified customers as enhanced rebates to make driving electric more affordable for all. Beyond EV rebates, drivers who charge their EVs while enrolled in BED’s off-peak charging rates are able to fuel up for as little as 75 cents per gallon equivalent. BED also has invested in Burlington’s public charging network, including a partnership with the Vermont Agency of Commerce and Community Development to fund a pilot program allowing us to install five on-street, utility pole-mounted, drop-down Level 2 chargers with the goal of supporting renters and drivers who may not have off-street parking. The drop-down charges also provide an off-peak rate to make driving electric more affordable. Further, BED has partnered with EVmatch to support EV charging for its customers who live in multi-family rental properties. Incentives are available to property owners who install EV charging stations at multi-family properties. Lastly, BED has invested in public level 3 fast chargers and level 2 chargers that are available in locations around the community.

For full details of all available BED rebates, please visit burlingtonelectric.com/rebates.

Tools to Help Assess Available Incentives
Resources to help BED customers determine which incentives are available to them include:

  • BED’s Energy Services Team offers free consultations about electrifying homes.
  • BED’s Sustainability Team has weekly “office hours” at King Street Laundry.
  • BED’s Net Zero Energy podcast teaches about taking steps toward Net Zero Energy.
  • Drive Electric Vermont details State of Vermont and utility EV incentives.