Minnesota’s EV tax credits and rebates in 2026 are a thin menu. The state rebate under Minnesota Statute 216C.401 has run out of money and is not accepting applications, the two main federal purchase credits ended for vehicles acquired after September 30, 2025, and what’s left for most buyers is a shrinking set of incentives tied to home charging equipment. The statute and the framework remain on the books, so it’s worth knowing what qualified before, what could come back, and what you can still claim now.
The State Rebate Is Paused
Minnesota’s EV incentive is a direct rebate paid by the Department of Commerce, not a tax credit on your return. That distinction matters: there’s no income cap in the statute, and you don’t need to owe state tax to receive it. The program began accepting applications on February 7, 2024, and the allocated funds have since been claimed. The Department of Commerce is not taking new applications.
Statute 216C.401 has not been repealed. If the legislature appropriates new funding, the program can reopen under the same terms, so the eligibility rules below are still the ones to watch.
Rebate Amounts
- Up to $2,500 for a new EV
- Up to $600 for a used EV
Individuals are limited to one rebate per household. Businesses with a valid Minnesota address are limited to one rebate per year. If you’ve already received a Minnesota EV rebate or tax credit, you can’t receive another.
Which Vehicles Qualified
A new EV qualified for the $2,500 rebate if the manufacturer’s suggested base retail price was $55,000 or less, the vehicle had not been previously owned, and it hadn’t been modified from the manufacturer’s original specifications. It had to be purchased or leased from a licensed dealer, or from a manufacturer without franchised Minnesota dealers.
A used EV qualified for the $600 rebate if the purchase price was $25,000 or less before taxes and fees, it had been previously owned in Minnesota or another state, and it was unmodified from original specifications. Plug-in hybrids qualified alongside fully battery-electric vehicles. In both cases, the vehicle had to be registered in Minnesota.
Who Could Apply
The statute defined four eligible applicant categories: Minnesota residents, businesses with a valid Minnesota address, nonprofit corporations incorporated under Minnesota Chapter 317A, and political subdivisions such as cities and counties.
Federal EV Purchase Credits Ended in September 2025
The One Big Beautiful Bill Act, signed in 2025, eliminated the two federal credits that Minnesota buyers most often stacked with the state rebate.
New Vehicle Credit (Section 30D)
The federal clean vehicle credit of up to $7,500 is no longer available for vehicles acquired after September 30, 2025. There is one carve-out: if you entered a binding written contract and made a payment (a nominal down payment or trade-in counts) on or before that date, you can still claim the credit when you take possession, even if delivery comes later.
Used Vehicle Credit (Section 25E)
The federal used clean vehicle credit is subject to the same cutoff and the same binding-contract exception. Without a pre-October 2025 contract in hand, a 2026 buyer of a used EV in Minnesota can’t claim it.
For anyone shopping now without a locked-in deal, plan as if the federal purchase credits do not exist.
Charging Incentives You Can Still Use
The savings that remain sit on the charging side rather than the vehicle side.
Federal Home Charger Credit (Section 30C)
The federal alternative fuel vehicle refueling property credit covers 30% of the cost of installing a home EV charger, up to $1,000 per charging port. It applies to property placed in service at your main home through June 30, 2026, and expires after that under the One Big Beautiful Bill Act. If you’re installing a Level 2 charger, doing so before July 2026 matters.
Xcel Energy Rebates
Xcel Energy customers in Minnesota can receive up to $500 toward a Level 2 charger or the wiring for a 240-volt circuit when they enroll in one of Xcel’s EV charging programs. Income-qualified customers may receive up to $1,200. Xcel also offers an electric panel upgrade rebate for homes that need electrical work to support a charger. These rebates cover equipment and wiring, not the vehicle.
Otter Tail Power
Otter Tail Power Company offers a $500 rebate to customers who install a Level 2 charger on a qualifying off-peak rate. Utility programs like this generally require enrollment in a specific rate plan that pushes charging to off-peak hours.
The $75 EV Registration Surcharge
Minnesota charges electric vehicle owners an annual registration surcharge of $75 under Minnesota Statute 168.013, on top of the standard registration tax. The surcharge exists because EV owners don’t pay the gasoline taxes that fund road maintenance. Legislative proposals have discussed raising the amount, so confirm the current figure when you register.
If You Already Claimed a Rebate or Credit
Keep the paperwork. For the state rebate, hold onto your purchase or lease agreement, proof of Minnesota registration, and any correspondence with the Department of Commerce. For federal credits, keep the dealer’s time-of-sale report (the IRS ECO confirmation), your purchase contract, and proof of any down payment. The down payment record is especially important if you’re relying on the September 30, 2025 binding-contract exception.
If you transferred a federal credit to the dealer at the point of sale for an immediate discount, the IRS still requires you to reconcile it on your annual return. If your modified adjusted gross income exceeded the limits that applied at purchase ($150,000 for single filers, $300,000 for joint filers), you can be required to repay the credit. Minnesota law treats filing fraudulent or materially false documents with a state agency as a felony, which is reason enough to keep the file accurate and complete.