Chicago, IL (RDL) – A Washington Policy Center policy brief released on Wednesday determined that the state’s $45 million Electric Vehicle Instant Rebate Program for purchasing or leasing electric vehicles fell well short of its claims to provide environmental results and assist middle-income persons in purchasing EVs.
According to the Washington State Department of Commerce, the program offered low-income drivers up to $9,000 off a new EV lease at the point of purchase. According to the state agency, this equates into leasing payments of less than $200 per month, which is far lower than the typical gas-powered vehicle cost of more than $700 per month.
“Now that the data for vehicle registrations are in for the two-and-a-half months that it was working, we wanted to know did it work and did it achieve the goals?” queried WPC Vice President for Research Todd Myers during a Wednesday interview with The Center Square. “The answer is it fell far short of the promises that were made.”
Myers stated that the subsidies were meant to raise EV or plug-in hybrid electric vehicle sales by around 8,700, but they only accounted for about half of that, or 4,800 automobiles.
“The CO2 emissions were absolutely minuscule,” Myers noted. “For $45 million, we reduced emissions by .03%; that’s it, so virtually nothing for $45 million in taxpayer money.”
The program, introduced by then-Gov. Jay Inslee on April 22 – Earth Day – last year, promises to make EVs more affordable for low-income households.
“We found that’s not really true at all,” Myers said. “Before the subsidies went into effect, in April the average income of ZIP codes where cars were purchased was $122,000.”
The rebates began on August 1 and lasted fewer than three months.
“During the period the rebates were being offered, that fell to about $118,000,” Myers said. “So, it’s basically much the same people who were buying electric vehicles before the subsidies who were buying them during the rebates – and they’re certainly not poor.”
According to WPC’s policy brief, up to October, “EVs and plug-in hybrids accounted for 21.8% of new vehicle sales in Washington, only slightly above the 2023 level of 20.5% and well below the 35% level that will be required in 2026.”
Myers noted that those who buy or lease a vehicle during the rebate period can benefit from significant rebates. He used the example of someone on a 36-month lease.
“They got $9,000 from the state and another $7,500 from the federal government, for a total of $16,500 in free taxpayer money,” Myers explained.
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According to WPC, the Tesla Model 3 was the most popular vehicle acquired during the discount scheme, with sales more than doubling compared to 2024 sales before the rebate.
The Center Square called the Washington Department of Ecology to get a response to WPC’s strongly critical policy brief.
“Washington is a national leader in the transition to clean vehicles, and more than one in five new vehicles sold in our state is now battery-electric or plug-in hybrid,” Andrew Wineke, Ecology’s deputy communications director, said in an email. “There are now more than 200,000 zero-emission vehicles on the road in Washington, a total that grew more than 30% in just the last year. If sales this year match the numbers we saw in 2024, we will easily clear the 2025 targets set in Washington’s zero-emission vehicle regulations.”
He went further: “Vehicle rebates are just one part of a suite of tools we’re using to accelerate the shift to clean vehicles, and we expect that progress to continue in the years ahead.”
Inslee’s final budget proposal included an additional $82 million for a follow-up program for the current biennium.
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