A new $1.5 million initiative will allow thousands of Americans to qualify for thousands of dollars in rebates if they buy a new or used electric vehicle. Rhode Island’s DRIVE EV program, for example, rewards residents with payments of up to $2,500 if they purchase a new electric car.

The program, launched in July by the Rhode Island Office of Energy Resources, offers buyers a discount to encourage the sale of such vehicles. This is aimed at combating climate change and meeting the greenhouse gas (GHG) emissions reduction targets mandated by the Climate Act of 2021.

This program has already distributed nearly half a million dollars in rebates since the summer, so there are still many thousands of dollars to be distributed. For Rhode Islanders, they can get up to $2,500 on the purchase of a new electric car, and up to $1,500 for the purchase of a new plug-in hybrid electric vehicle.

These rebates are reduced to $1,500 and $750 respectively if used. The vehicle brands eligible for these rebates are Chevrolet, Hyundai, Tesla, Toyota and Volkswagen.

However, there is a price limit: the new electric model cannot cost more than $60,000 new or $40,000 used.

The authorities have established new rules that eliminate the sales cap and take into account the income of consumers. Individuals reporting adjusted gross income of $150,000 or less will be eligible for the rebate of up to $7,500. This limit increases to $225,000 for filers who are head of household and $300,000 for joint filers.

Consumers will be eligible for a higher tax credit if they purchase a U.S.-made car. Rebates also apply to used electric cars, with credits of up to $4,000.