The Complete Guide to New York’s Drive Clean Rebate

Mar 6, 2020   

New York State offers an aptly-named Drive Clean Rebate that applies to over 40 models of electric vehicles, including all Tesla models.

The Drive Clean Rebate provides a point-of-sale rebate of up to $2,000 towards the purchase or lease of a new electric vehicle. All new Tesla models qualify for the rebate, with reduced amounts available for electric vehicles from other brands featuring an electric range of less than 120 miles. However, electric vehicles with a base MSRP of over $60,000 are capped at a $500 rebate. Model 3 and Model Y would qualify for the full $2,000 rebate, while Model S and Model X would qualify for a $500 rebate.

New Tesla

Model 3 Rebate Amount $2,000
Model Y Rebate Amount $2,000
Model S Rebate Amount $500
Model X Rebate Amount $500

Dealers, or in this case Tesla Stores, apply the rebate at the point of purchase — customers immediately receive a discount of up to $2,000 off the purchase price of any Tesla. Customers who choose to lease (with a lease term of at least 36 months) can use the rebate effectively as a capitalized cost reduction, similar to a down payment.

All New York State residents qualify for the rebate. The Drive Clean Rebate also applies to the purchase or lease of an eligible vehicle by businesses and government entities. Tesla Stores apply for the rebate directly from the New York State Energy Research and Development Authority following the purchase, with no additional intervention required by the consumer. (Recipients of the rebate do need to sign a Vehicle Purchaser Terms and Conditions document at the time of purchase, which can be reviewed here.)

A new Tesla has to be purchased from a participating Tesla Store within New York State to qualify. An ownership period of at least 36 months is required, otherwise the operator of the program may seek reimbursement for a portion of the original rebate amount.

The Drive Clean Rebate became effective on March 21, 2017. $55 million has been budgeted towards the rebate, with roughly $21.8 million in rebates remaining to be claimed.

Tesla customers in New York State have been awarded 4,266 rebates to date.

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