Minnesota’s new law includes an EV rebate of $2,500 for a new car and $600 for a used one, with no income caps, among other EV incentives.

That puts Minnesota in the company of such states as Connecticut, California, Massachusetts, and Maine, and it joins Illinois as one of two Midwestern states with EV rebate programs.

Minnesotans will receive $15.716 million in first-time rebates for purchasing EVs. The rebates are limited to new vehicles with an MSRP of $55,000 or below and used vehicles that sell for $25,000 or below.

Minnesota auto dealerships will also receive a total of $2 million in one-time grants to offset infrastructure investments needed to sell EVs.

Amber Backhaus, vice president of public affairs at the Minnesota Automobile Dealers Association, said:

Before they can even sell an electric vehicle, dealers must invest hundreds of thousands of dollars in charging stations and new equipment.

These grants will expedite the transition to having EVs available to consumers in dealerships across the state.

The state rebate is in addition to the federal $7,500 tax credit. The rebate is applied at the point of purchase, and tax credits are applied when the EV owner files their annual federal taxes.

Minnesota legislators also approved $13 million for school districts to buy and maintain electric buses and charging infrastructure, and Minnesota’s public electric utilities will now be required to file transportation electrification plans with the Minnesota Public Utilities Commission that will promote EV adoption among their customers.

Brendan Jordan, vice president for Transportation and Fuels at the Great Plains Institute, said:

Taken together, these investments put Minnesota on the map as a serious investor in our electric transportation future.

While Minnesota’s EV adoption rate has comparatively lagged due to insufficient investment, this new level of state support will transform Minnesota into a regional and perhaps national leader in the EV adoption effort.

Read more: Minnesota just passed a 100% clean energy bill – here’s what’s in it

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