Electric vehicles (EVs) made up 11.6% of Vermont’s new light-duty vehicle sales in the first half of 2024, and the number of electric vehicles in Vermont increased by 49% from July 2023 through summer 2024, according to WCAX.com. Whether your community is fueling its own fleet or encouraging local and visiting EV drivers to fuel up in your community, the grants, loans, and incentives below can help you install EV charging infrastructure.
Consult program-specific guidance for additional information. Links to other sites offered in this document are provided to assist municipalities: the inclusion of a link does not imply endorsement or approval of the linked site or product.
Funding Opportunities
Vermont Community Electric Vehicle Chargers Incentive Program – This statewide program administered by Green Mountain Power for the VT Department of Housing and Community Development supports turnkey services including technical assistance, a design for sighting of the chargers, completion of a full plan for installation, make-ready upgrades, charging hardware, and full installation of the chargers. Locations such as workplaces, multi-unit dwellings, and public attraction (town office, library, park and ride, park, etc.) are eligible. Grant amount varies based on level of charger installed. Pre-approved electrical contractors and local electric utilities offer technical assistance to help applicants who may have limited experience with EV charging.
Electric Utilities – Most Vermont electric utilities offer an incentive for installing EV charging stations including:
- Green Mountain Power has business (and municipal) incentives for Level 2 or Level 3 chargers located with workplaces and public locations. The Level 2 rebate is $750 per port, and the Level 3 is $10,000 per site. GMP also offers special EV charging rates.
- Vermont Public Power Supply Authority manages EV charging and other rebate incentives for its 11 municipal utility members. current rebate is $950 on the purchase of a Level 2 charger for workplace or public use.
- Vermont Electric Coop offers a credit on your power bill for the installation of Level 2 and Level 3 public charging stations. The credit is $500 per connection incentive (ex. 2-head charger credit is $1,000).
- Burlington Electric Department offers two incentives: a rebate of up to $2,500 on the EV charger hardware for a workplace, and special reduced EV rate on the electricity used to run the charger.
- Stowe Electric offers a rebate for Level 2 or Level 3 DC Fast Charging stations installed at a workplace, public building or parking lot, or commercial location and available for customers, visitors, and public users. The Level 2 rebate is $500 for workplace or public chargers, and the Level 3 is $1,000 per charger (maximum $2,000 per year per customer).
Federal Alternative Fuel Vehicle Refueling Property (§ 30C) – Tax exempt entities, including municipalities, can use this incentive after installing electric vehicle charging equipment and other alternative fuels like hydrogen. The credit is claimed using the “elective pay” process. Essentially, the municipality files for a partial refund of its costs through the IRS at the close of the calendar year in which the project was put into service. The refund amount is 6% or 30% depending on whether labor provisions are met (Davis Bacon wages + apprenticeship hours). The refund is capped at $100,000 per single item. Projects must be in low-income (New Market Tax Credit) or non-urban census tracts to qualify. The credit is available until 2032 unless rescinds by Congress.
VLCT published a resource, Claiming Tax Incentives for Your Clean Energy Project, that explains elective pay and provides an overview of the claims process. If the project is under 1 MW, the filing process is relatively easy. We encourage municipalities to consult with a CPA and their attorney when pursuing this incentive.
Vermont State Infrastructure Bank Electric Vehicle Charging Stations – This program provides loans for EV charging stations made available for public use. Loan amount is up to $100,000. Loan rate is 1% fixed with a term dependent on the useful life of the asset. A 2% commitment fee applies. The loan is managed by the Vermont Economic Development Authority (VEDA). Discuss your proposed project with VEDA prior to applying.
VEDA Electric Vehicle Workplace Charging Station Loan Program – Borrowers must be customers of an electric utility with an EV charging program acceptable to VEDA. The EV charging infrastructure can be available for use by employees, customers, and/or the public. Funds purchase and installation of charging equipment and connection to the utility. The VEDA loan may be up to 80% of the project cost up to a maximum of $25,000. The project balance may be funded by the utility rebate and/or equity from the applicant. Interest rates are 4% for loan terms up to three years and 5% for loans with a longer term up to five years. Contact your current VEDA loan officer or EV@veda.org to begin the application process.
Other Funding Opportunities
EV charging infrastructure may be an eligible activity through other grants if part of a larger project. Two examples: building renovations or new construction using USDA Rural Development Community Facilities grants; loans and trailhead construction using transportation or recreation grants.
Where to Find Help
Municipalities are welcome to use VLCT’s Ask a Project Pro service to discuss potential funding sources for a project or for project development advice. Through this service, VLCT narrows funding opportunities to those most pertinent to a project, saving municipalities time and resources. We also provide coaching for project development and grant management.
Many municipalities lack capacity for grant writing and administration. VLCT published a resource, Increasing Municipal Capacity for Grants, that offers ideas for assistance with grants.