Oregon’s EV Incentive Program Running Out of Money


Oregon’s electric vehicle incentive program---widely publicized for bringing the price of a Tesla Model 3 well below $30,000---is being suspended for a year starting in May, because it is running out of money.

According to a new report from Oregon Live, the Oregon Department of Environmental Quality’s Clean Vehicle Rebate Program has paid out more than $71 million to help buy or lease roughly 25,000 EVs in the past five years.

In February, it was reported the incentives had pushed Model 3 prices from nearly $44,000 to between $26,990 and $28,390, making the Tesla mass-market sedan extremely affordable, bringing it within the territory of the Toyota Corolla in terms of pricing.

The incentive program allowed all state residents to stack the $7,500 federal tax credit with the state's $2,500 Clean Vehicle Rebate; low- and moderate-income residents could get an additional $5,000 rebate.

According to Fox Business, Oregon expects 1.5 million people to be driving EVs in the state by 2035. In December, state policymakers banned the sale of new gas-powered vehicles by 2035.

Incentives are a big part of the EV buying experience, as the price of the vehicle and where its materials are sourced can all contribute to whether or not it qualifies for incentives. In an attempt to get more EVs on the road, states have offered their own incentive programs, and they vary from location to location. 

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