The Overview

Delaware’s electric car rebates can now be set by household income, opening the door to bigger checks for lower-income buyers in a future program. Gov. Matt Meyer (D) signed House Bill 348 on July 23, giving the Department of Natural Resources and Environmental Control (DNREC) more room to decide who gets a rebate and how much. ​

The change comes after the federal tax credit of up to $7,500 for new electric vehicles ended Sept. 30, 2025. Electric vehicle sales dipped after that federal help disappeared, then rose again when gas prices climbed, DNREC’s Doug Denison told Delaware Public Media.

What the Law Does

DNREC can now set rebate amounts based on the money available and market conditions, and vary them by household income, vehicle type, vehicle cost or other factors meant to widen access. The law also allows enhanced rebates for a future program aimed at lower-income families. A 2023 state law had set rebates at up to $2,500 for an all-electric car and $1,000 for a plug-in hybrid, for vehicles priced at $50,000 or less.

Delaware residents and active-duty military members stationed in the state can still qualify, and the law adds businesses, nonprofits, schools and state and local government agencies operating in Delaware. DNREC can set its own rules, such as price limits, and can hire outside companies to run the program. Its current rebates top out at $2,500 for a new all-electric car with a base price under $40,000, and buyers must apply within 90 days of purchase.

Legislative Status

Rep. Sophie Phillips (D) and Rep. Debra Heffernan (D) led the bill in the House, and Sen. Stephanie Hansen (D) joined as a lead sponsor, with seven Democratic representatives as cosponsors. The House passed it 26-13 on May 12, and the Senate passed it 16-5 on June 23, according to the FastDemocracy vote record.

House Republicans voted against the bill, raising concerns about the program’s use of ratepayer money. The rebates are paid for with money Delaware receives through the Regional Greenhouse Gas Initiative, a multistate program that sells permits to power plants for the carbon pollution they release.

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