Tennessee Revives Bredesen-Era Subsidies For Electric Vehicles

The state of Tennessee had $682,000 left over when its rebate program for electric vehicles shut down two and a half years ago. 

The money has been unspent ever since. So instead of finding another use, the Department of Environment and Conservation decided to give out rebates for EVs again until the money is gone.

Starting June 15, the program will offer $2,500 in rebates for all-electric cars like the Nissan Leaf, which is made in Smyrna. Plug-in hybrids qualify for $1,500.

But overall, the electric car market has been growing stronger in recent years. When asked to justify state subsidies, program manager Molly Cripps was reluctant to answer.

“I mean, air quality is one piece, certainly,” she said. “It is also to support not just Nissan, but any manufacturers of whether it be an electric vehicle or more sustainable transportation.”

The initial $2.5 million set aside for rebates
was approved five years ago while Democrat Phil Bredesen was still governor. Starting out, it only applied to the Leaf, which had
sluggish sales at first. According to TDEC, 727 rebates were issued over the course of roughly two years.

Like the original program, the purchase has to be made by a Tennessee resident at a Tennessee dealership. The dealer will be responsible for handling the paperwork.

A federal tax credit worth as much as $7,500
remains available for those who purchase electric vehicles. It begins to sunset once 200,000 EVs are sold in the U.S.