The Oregon Department of Environmental Quality announced it will temporarily suspend the Oregon Clean Vehicle Rebate Program as of May 1, 2023, which provides rebates for the purchase of electric vehicles (EV). Projections show the program will be oversubscribed in late spring 2023. Program rules require DEQ to suspend rebates once funds are depleted.

"DEQ has one of the most generous EV rebate programs in the country," said Oregon DEQ Director Leah Feldon. According to ODOT, Oregon ended 2022 as the number two state for electric vehicles sold averaging about 1,000 per month. It has been extremely successful with 57,700 registered in September 2022. Feldon says, "The 2023 rebate applications are coming in at our highest rate yet. People are choosing electric vehicles and rebates are instrumental in lowering the costs to Oregonians."

A D V E R T I S E M E N T

A D V E R T I S E M E N T

The program receives funds annually from the state's Vehicle Privilege Tax, which is a tax for the privilege of selling vehicles in Oregon. It's a one-half of one percent (.005) tax that shows on the sales receipt. Don't think you will avoid the tax by purchasing out-of-state, it's called a Vehicle Use Tax. The "sales" tax on all vehicles (with a few resale exemptions) covers all EV program costs, including rebates, program administration and community engagement.

The Oregon Department of Revenue projects the program will receive about $14 million for 2023. Also, it was able to carry over approximately $3.5 million due to a one-time allotment of $15 million last year. Therefore, the 2023 budget was $17.5 million, with $15.5 million available for rebates. DEQ expects the fund to be depleted in the next few months, based on volume of EV sales.


--Ryan Bannister

Post Date: 2023-03-17 15:29:41

Last Update: 2023-03-20 09:12:33