State rolls out rebates on electric vehicles for low-income drivers

State officials are offering new incentives to low-income drivers in Washington who want to go electric. For people with qualifying incomes, instant rebates of up to $9,000 dollars are now available for leasing fully electric vehicles. Up to $5,000 can go towards purchasing new ones. The state’s program is being administered by participating dealerships.

Washington Commerce Director Mike Fong helped launch the program in a parking lot near Lumen Field in Seattle. He said the state’s push for more EVs is one of many aggressive strategies to address climate change. And their research shows that the interest in EVs is very similar between higher-income and lower-income families and individuals.

“But the number one cited barrier is cost,” Fong said. “And we believe we, with this first in the nation, leaning-in model, focusing on leasing — low income, affordable leasing of electric vehicles — is our way of really leveling the playing field and really enabling EV adoption to really go across the whole state.”

To qualify for the rebate , an individual must show an income that is at or below 300% of the current federal poverty level — currently $45,180 per year — and go to a participating dealership to sign up . The most affordable leasing options should start at less than $100 dollars a month. So far, 122 dealerships statewide are taking part in the program.

State push to accelerate EV adoption

Electric vehicles are already taking off in Washington: their number has nearly doubled over the past two years . That’s helping to drive down costs, rapidly.

Washington Governor Jay Inslee said the state has also subsidized more widespread charging infrastructure that is rolling out soon. And Washington is home to two battery manufacturers in Moses Lake, who are working on technology to extend EVs’ range. So it’s all coming together.

“But we don't want to wait. We want to get as many Washingtonians as possible, regardless of their economic circumstances, to be able to to experience the thrill of having an EV,” Inslee said.

With a quiet, powerful engine, low maintenance – and zero gas costs, he added.

But right now, the cost of switching to an EV is still an obstacle for many drivers. That’s why the state created this rebate program targeting lower-income drivers.

Leasing not the best solution, critics say

The oldest EV club in the region, the Seattle Electric Vehicle Association, is criticizing the state program, for its emphasis on leasing over ownership. SEVA hosts monthly meet-ups, where members help broker person-to-person sales of used vehicles, and guide new EV drivers through the purchasing process. They have directed buyers to online resources where they can get federal rebates on those transactions.

SEVA President Jay Donnaway said he’s unaware of any way to do that with the state rebates. He doesn’t like how the program puts dealerships at the center of the program, potentially at the expense of a lower-income buyer’s interests.

“You're incentivizing someone who may earn a maximum of $45,000 in a year to lease a vehicle valued at up to $90,000,” Donnaway said.

He said the program is boosting business for participating dealerships, who he fears might take unscrupulous advantage of customers.

If someone misses a payment, Donnaway said there is nothing to stop the dealer from repossessing the vehicle, offering it to another customer and taking advantage of their rebate.

“The only thing guaranteed is that the lessor gets to keep $5-9,000. And the lessee has nothing at the end of 24-36 months, other than an extended test drive in a very nice vehicle.”

State rebates are available on purchases, but they max out at $5,000 for a new EV and $2,500 for a used one.

Donnaway said he’s hopeful the state will keep an eye on the rebates and prevent any untoward business practices by participating dealerships. On the upside, he acknowledges the intent of the program could actually pan out.

“I am optimistic that it'll get a lot of people into an affordable used EV that is perfect for commuting and local errands,” he said.

The state’s new low-income rebates are available through next June at participating dealerships, statewide - but there’s only enough funding for a maximum of 8,000 vehicles.