Mileage Smart program drove 1,277 used‑vehicle incentives; state funding exhausted in fall 2024

Andrea Wright, environmental policy manager at the Vermont Agency of Transportation (VTrans), told the House Transportation Committee on March 13 that the Mileage Smart program — created by the legislature under Act 59 (2019) and codified in Act 62 (2023) — issued incentives to help low‑income Vermonters purchase fuel‑efficient preowned vehicles from October 2020 through fall 2024.

Wright described eligibility and program mechanics: recipients must be Vermont residents at least 18 years old, hold a Vermont driver’s license, and have household adjusted gross income below 80 percent of state median income; the program limited one incentive per individual and required a minimum 12‑month ownership period. “To be eligible for the Mileage Smart program, participants have to be a Vermont resident, at least 18 years of age and have a valid Vermont driver's license,” Wright said.

Capstone Community Action served as the program’s administrator in partnership with VTrans. Phil Cicchini, Capstone’s weatherization business manager, said outreach used the Community Action (CAP) network statewide and dealer education to enroll participants. He said dealers were initially slow to accept the process but later became a primary referral channel. “After they realized who we are and that we’re there to work with them and to facilitate these fields, they…were more than willing to lease cars before they got the incentive check,” Cicchini said.

Wright and Capstone provided totals and recent program changes: approximately $5.7 million in incentives were issued to 1,277 recipients (an average of about $4,500 per vehicle). The program introduced a $40,000 maximum purchase price for eligible vehicles on Jan. 1, 2024. Incentives and eligibility tiers were adjusted in June 2024 — in part to stretch limited funding pending EPA Carbon Pollution Reduction Grant timing. Under the earlier rules an incentive could be up to $5,000; after the June changes SNAP recipients retained a $5,000 all‑electric/plug‑in allotment, while the 80% state median income category saw used electric/plug‑in incentives reduced to $2,500 and incentives for used conventional hybrids removed.

Wright said the program was initially designed to prioritize higher‑efficiency vehicles and lower‑income recipients. She summarized funding appropriations from multiple Transportation Acts and transfers that left a total of roughly $5.7 million distributed and the program out of funds in October 2024. Wright said returning the program to earlier incentive levels (the $5,000 average) would likely cost just over $2 million per year.

Committee members asked how recipients were identified and whether Capstone followed up with buyers after purchase. Cicchini said CAP network outreach and dealer engagement were primary channels; he and other Capstone staff said a university evaluation (UVM) was commissioned to study follow‑up outcomes but that Capstone itself did not perform long‑term ownership verification as part of routine operations.

Capstone staff said program administration requires sustained staffing capacity to manage dealer relations, intake, outreach and reimbursements. Will Eberly, Capstone’s weatherization director, said that to maintain the higher levels of volume seen in late 2023 and early 2024 the program would need sufficient administrative capacity and reliable reimbursement/billing systems. He said dealers were already engaged and could ramp quickly if funding were restored. “The dealers were really firing on all cylinders supporting the program,” Eberly said, noting that a reduction in incentive amounts in mid‑2024 led to lower volume.

Committee members raised additional questions about geographic distribution of incentives and dealer networks; Capstone staff acknowledged that distribution concentrated around dealers that actively participated and that rural networks and charging‑station availability likely affected all‑electric vehicle uptake in some regions.

Ending: Wright and Capstone recommended considering funding and staffing levels that would allow the program to sustain equitable outreach, reengage dealership partners and support dealer education, and they noted that broader studies (including UVM work) could inform follow‑up metrics such as continued ownership and in‑state retention of vehicles.