Oregon’s EV incentive program that brought Tesla prices below $30k is running out of money

Oregon’s electric vehicle incentive program that was widely publicized for bringing the price of a Tesla Model 3 well below $30,000 is being suspended for a year starting in May because it is running out of money.

According to a new report from Oregon Live, so many people have applied for the program because of the hefty incentives that the program is being paused for 12 months in May.

The Clean Vehicle Rebate Program is reportedly running out of money as it has paid out over $71 million to help buy or lease roughly 25,000 EVs in the past five years.

In February, we reported that the incentives had pushed Model 3 prices from nearly $44,000 to between $26,990-$28,390, making the Tesla mass-market sedan extremely affordable and bringing it within the territory of the Toyota Corolla in terms of pricing.

The incentive program allowed vehicles to be stacked with the $7,500 federal tax credit. The Oregon Department of Environmental Quality’s Oregon Clean Vehicle and Charge Ahead Rebate also was $7,500, but the savings didn’t stop there.

Local Oregon residents could also receive $2,500 extra, and low and moderate-income residents were given an additional $5,000 rebate that could have been used on new or used electric cars.

According to Fox Business, Oregon expects 1.5 million people to be driving EVs in the state by 2035. While the state has not committed to a ban on gas vehicle sales by that time, other states, like California and Maryland, have already taken steps to make it a reality.

Incentives are a big part of the EV buying experience as the price of the vehicle and where its materials are sourced can all contribute to whether or not it qualifies for incentives.

In an attempt to get more EVs on the road, states have offered their own incentive programs, and they vary from location to location. However, most EVs can be purchased by stacking state and local rebates with federal incentives.

The $7,500 credit is in effect for deliveries taken no later than March 31, 2023.

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