Federal rebates for buying an electric vehicle have come to an end. But for a time, they'll be available to some Ann Arbor residents.
The city of Ann Arbor offers rebates for all sorts of things that save energy — from heat pumps to e-bikes to electric lawn mowers — as part of its climate action program.
It's now offering electric vehicle rebates, for a limited time.
Ann Arbor Mayor Chris Taylor said high prices are "really hitting people hard these days," and he hopes some residents can get relief from the price of gas by taking advantage of the rebate.
The rebate will be generally shaped to mirror the federal electric vehicle rebates that are no longer available:
- Up to $7,500 for a new, all-electric vehicle, purchased by an income qualified City of Ann Arbor household
- Up to $7,500 for a new, all-electric vehicle purchased by a local, City of Ann Arbor business
- Up to $5,000 for a new, all-electric vehicle purchased by a non-income qualified City of Ann Arbor household
- Up to $4,000 for a used all-electric vehicle
The program will run through September 2026 or until all funds are expended. A total of $500,000 has been allocated to the EV rebate program.
To qualify:
- All applicants must be residents of, or a registered business in, the City of Ann Arbor. Residents must be 18 years of age or older.
- There is a limit of one rebate, regardless of category, per household or business.
- The vehicle must be all electric, not a hybrid electric vehicle or plug-in hybrid electric vehicle.
- The vehicle must be placed in service upon rebate disbursement. A vehicle is placed in service when one takes possession of the vehicle.
- A vehicle must be placed in service after May 1, 2026.
- Vehicles must be purchased from a dealer.
- A household’s annual gross income (including all members of the household, regardless of relationship) is at or below 120% of the Area Median Income (AMI) for Ann Arbor.
- Rebates may not exceed 90% of a qualified all-electric vehicle’s cost.
The A2ZERO Home Energy Rebates program started in 2024, and uses millage dollars to focus on home decarbonization, with rebates explicitly for:
- Cold climate heat pumps
- Ductwork
- Heat pump water heaters
- Induction cooktops
- Heat pump dryers
- Electrical panel upgrades
- Battery storage systems
- E-bikes
- Insulation and air sealing
The city expanded rebates in 2025 to include yard care electrification for snowblowers, leaf blowers, lawn mowers, chainsaws, hedge trimmers, pole saws, string trimmers, edgers, and brush trimmers.
Taylor says people are struggling with housing costs in Ann Arbor too, and the city's housing affordability millage is working to provide some relief there also.
