2023 MOR-EV Report
ANNUAL REPORT TO THE SENATE AND HOUSE COMMITTEES ON WAYS
AND MEANS, THE JOINT COMMITTEE ON TRANSPORTATION, AND THE
JOINT COMMITTEE ON TELECOMMUNICATIONS, UTILITIES AND ENERGY
Massachusetts Department of Energy Resources | September 30, 2024
Table of Contents
Glossary ...................................................................................................................................... 1
Introduction ................................................................................................................................ 2
Overview of MOR-EV Program 2014-2022 ................................................................................ 3
MOR-EV in 2023 ........................................................................................................................4
2023 Program Overview: Light-duty Vehicles ......................................................................... 5
MOR-EV Standard ..............................................................................................................6
MOR-EV Used ....................................................................................................................9
MOR-EV+ ......................................................................................................................... 11
MOR-EV Trade-In ............................................................................................................. 13
Culturally Competent Outreach .............................................................................................. 13
Demographic Program Participation Analyses ............................................................................15
Voluntary, anonymous Demographic Survey Data ..................................................................15
Results of Survey Data Analysis .........................................................................................15
Environmental Justice Populations .........................................................................................21
State EJ Population Analysis: Municipality .........................................................................21
State EJ Population Analysis: Vehicle Registration Address .............................................. 22
LIDAC Populations ............................................................................................................... 22
Results of LIDAC Analysis ............................................................................................... 22
Recommendations ..................................................................................................................... 23
Appendices .............................................................................................................................. 25
Acknowledgements ................................................................................................................... 70
Glossary
AGHI Annual gross household income
AGI Adjusted gross income
BEV Battery electric vehicle
CBO Community-based organization
CSE Center for Sustainable Energy
1
CUV Crossover utility vehicle
DOER Department of Energy Resources
EJ Environmental justice
EV Electric vehicle
FCEV Fuel cell electric vehicle
GECA Green Energy Consumers Alliance
GHG Greenhouse gas
ICEV Internal combustion engine vehicle
LIDAC Low-income or disadvantaged community
MOR-EV Massachusetts Offers Rebates for Electric Vehicles
MSRP Manufacturer's suggested retail price
National HHI National average household income
OEJE Office of Environmental Justice & Equity
OEM Original equipment manufacturer
PHEV Plug-in hybrid electric vehicle
State Median HHI State median household income
SUV Sport utility vehicle
ZEM Zero emission motorcycle
ZEV Zero emission vehicle
Introduction
The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program aims to provide air
pollution emission reductions for the Commonwealth by increasing the use of zero emission
vehicles (ZEVs). Overseen by the Department of Energy Resources (DOER) and implemented by
a third-party program administrator, MOR-EV provides incentives to residents, businesses, non-
profits, and public entities to electrify light-, medium-, and heavy-duty vehicles.
MOR-EV program offerings currently include but are not limited to a standard rebate for new
ZEVs, a point-of-sale rebate option to enable improved cost accessibility at the time of vehicle
purchase or lease, rebates for used ZEVs, and a rebate adder intended for Commonwealth residents
with limited income that can be combined with other MOR-EV rebates. In early 2023, DOER
established a culturally competent outreach campaign, which is print accessible and accessible to
English language learners, to inform dealers, vehicle salespeople, consumers and businesses in
underserved communities, communities with high percentages of low-income households and
communities with high proportions of high emissions vehicles about the MOR-EV programs and
incentives. In addition, MOR-EV provides additional rebate funding to medium- and heavy-duty
vehicles that operate in Environmental Justice Communities to further minimize air pollution
impacts in those areas.
The underlying objectives of MOR-EV include:
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• increasing consumer awareness and adoption of ZEVs
• increasing consideration of ZEVs in vehicle purchase/lease decisions
• reducing greenhouse gas (GHG) emissions of the transportation sector
• improving air quality and associated health benefits
• enhancing vehicle fuel diversity and security
• promoting economic growth
This report addresses the directive from the 2022 Act Driving Clean Energy and Offshore Wind1
that requires DOER to provide annual reporting on the MOR-EV program as follows:
“The report shall include an analysis of the programs established in this section including, but
not limited to, by examining historic and present participation of low-income and moderate-
income households, examining participation among demographic groups, including data by
race and ethnicity, and recommending strategies and investments to reduce or eliminate any
disparities in program participation; provided, however, that, every 3 years, the report shall
also examine the cost-effectiveness of the programs in reducing greenhouse gas emissions,
using recent multi-year data.” (source)
As 2023 is the first reporting year, it should be noted that many of the program changes enabled by
the 2022 Act were not implemented until later in the calendar year; see section titled “MOR-EV in
2023” for further details.
Overview of MOR-EV Program 2014-2022
Between 2014-2022, MOR-EV provided rebates for the purchase or lease of battery electric
vehicles (BEVs), fuel-cell electric vehicles (FCEVs), and plug-in hybrid electric vehicles (PHEVs)
with a purchase price below a certain threshold. The design of MOR-EV evolved several times
over the years. Details on the various phases of the program are included below.
Phase 1, from June 2014 until January 2016, included rebates of $2,500 for BEVs (including cars,
CUVs, SUVs, and pick-up trucks), PHEVs with an onboard battery size of 15 kWh or more
(referred to as PHEV Plus), and fuel cell electric vehicles (FCEV). Phase 1 also included rebates
of $1,500 for PHEVs with an onboard battery of less than 15 kWh and $750 for fully electric zero
emission motorcycles (ZEMs).
Phase 2, from February 2016 through December 2018, continued the rebate levels from Phase 1
for vehicles with a manufacturer’s suggested retail price (MSRP) of less than $60,000. Vehicles
with a MSRP greater than or equal to $60,000 received a reduced rebate of $1,000.
Phase 3, from January through September 2019, reduced the rebates from $2,500 to $1,500 for
BEVs and FCEVs, and from $750 to $450 for ZEMs; it eliminated all rebates for PHEVs. The
program did not provide rebates for any vehicles with a MSRP of $50,000 or higher. MOR-EV was
1
M.G.L. c. 25A, § 19; St. 2022, c. 126, § 123.
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then suspended from October through December 2019, during which time the program provided
notice to potential participants that rebates would no longer be available. Rebates were ultimately
provided to these EV purchasers, although these participants are all considered free riders in the
analysis because they made the purchase decision with the understanding no rebate was available.
Phase 4, from January through December 2020, resumed the program at similar rebate levels as
were offered in Phases 1 and 2 with two adjustments: (1) PHEV pluses received a $1,500 rebate
instead of a $2,500 rebate (and were designated as eligible by having a range of 25 or more electric
miles rather than based on onboard battery size) and (2) ZEM rebates concluded. Beginning June
25, 2020, commercial and nonprofit fleets (including rental cars, company cars, and delivery
vehicles) also became eligible to receive rebates.
Phase 5, from January 2021 through June 2023, MOR-EV rebates were available for the purchase
or lease of BEVs, FCEVs, and eligible PHEVs. In 2021, the MOR-EV Program offered a $2,500
rebate for eligible BEVs and FCEVs as well as a $1,500 rebate for eligible PHEVs with an all-
electric range of at least 25 miles. Starting November 10, 2022, the rebate amount for BEVs and
FCEVs increased to $3,500; there were no changes made to the PHEV rebate amount in 2022.
Throughout 2021, the vehicle purchase price cap was set by statute as $50,000 for any eligible
vehicle type. In 2021, fleets were limited to a maximum of ten rebates per calendar year, but this
cap was removed in 2022.
During this period, the Commonwealth also passed the 2022 Act Driving Clean Energy and
Offshore Wind, which required several changes to MOR-EV to be phased in during the following
year. The first change was that the vehicle price cap be increased to $55,000 for BEVs and FCEVs
that were purchased on or after November 10, 2022; in addition, the rebate amount increased to
$3,500 for BEV and FCEV rebate applications that were approved on or after this date.
MOR-EV in 2023
Due to the new climate legislation in 2022, the program underwent another overhaul, with most
changes phased in during 2023. These changes included the removal of PHEVs from the program
(since the legislation defined ZEVs as those that produce “no engine exhaust carbon emissions”),
an additional rebate for income-qualifying residents, and rebates for used vehicles. To distinguish
among the various rebate offerings, the rebate for new light-duty ZEV purchases or leases is now
referred to MOR-EV Standard. Infographic 1 below illustrates the rebate offerings that were active
in 2023, the relative incentive value, available method(s) of securing a rebate, and any associated
restrictions to participation.
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Infographic 1: MOR-EV Rebates Available in 2023
*With an approved prequalification voucher
The first program modification in 2023 was to institute that PHEVs were no longer eligible under
MOR-EV Standard. As of July 1, 2023, the MOR-EV program only accepted applications for
purchases or leases of PHEVs that took place on or before June 30, 2023, and no further rebate
applications for PHEVs were accepted after September 28, 2023.
Next, the MOR-EV Used program launched, offering a rebate of $3,500 for the purchase or lease
of eligible used vehicles and the MOR-EV+ low-income rebate adder become available, providing
an additional rebate of $1,500 is available to income-qualifying Massachusetts residents. Both
rebate programs were launched on August 8, 2023. Also as of August 8, 2023, the MOR-EV
Standard, Used, and MOR-EV+ rebates became available through participating dealerships in the
Commonwealth at the point of sale or at the time of lease, with the latter two requiring pre-approval
through the MOR-EV program administrator to be redeemed at a participating dealership.
Alternatively, applicants are still able to apply to for any of these rebates online within 90 days of
the purchase or lease of an eligible vehicle.
And finally in 2023, MOR-EV launched an additional $1,000 rebate adder for the purchase or lease
an eligible EV on or after August 8, 2023, if a qualified internal combustion engine vehicle (ICEV)
traded in at that time. This program launched on December 6, 2023, and its annual budget is capped
at one percent of the projected, upcoming fiscal year light-duty rebate spending. Applicants can
apply for the MOR-EV Trade-In rebate alongside their online application for a MOR-EV Standard,
MOR-EV Used or MOR-EV+ application or apply online after having received a MOR-EV rebate
at the point-of-sale.
2023 PROGRAM OVERVIEW: LIGHT-DUTY VEHICLES
The following figures and data are from the most recent MOR-EV Annual Report, which covers
the period of March 2023 through February 2024. It was prepared by the Center for Sustainable
Energy, the entity that administers the program on behalf of DOER. This section focuses on light-
duty vehicles only given that they represent most dollars spent/rebates issued historically and
during the reporting period.
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MOR-EV Standard
The light-duty rebate program, in particular MOR-EV Standard rebates, continue to be the most
active component of the overall program in terms of volume and spending as show in Figure 1.
Figure 1: Total Number of Rebates by Program and Amount Issued
Total Number of Rebates Total Rebate Amount
Rebate Amount Issued
# of Rebates Issued
15,000 12,854 $50,000,000
12,000 $40,000,000
9,000 $30,000,000
6,000 $20,000,000
3,000 $10,000,000
303 185 34 298 3
- $-
S&P Global registration data recorded 19,290 registrations of MOR-EV-eligible vehicles in this
time frame.2 In comparison, the MOR-EV rebate data shows 12,854 approved MOR-EV Standard
applications, resulting in an overall program participation rate of 66% for the reporting period.
Tesla Model Y had the highest number rebates and highest participation rate (83%). This was a
significant increase from prior years due to the Model Y being eligible again. The Tesla Model 3
and Volkswagen ID.4 Pro also had the second and third highest participation rates at 77% and 71%,
respectively.
2
The Massachusetts Vehicle Census (MVC) cannot be filtered by specific dates in order to
precisely align with the MOR-EV reporting timeframe herein, but for context, the MVC data shows
there are 28,692 BEVs registered statewide that are either new or one year-old.
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Figure 2: Top 20 Most Rebated Vehicles Under MOR-EV Standard
Tesla Model Y 6,630
Tesla Model 3 2,654
Volkswagen ID.4 895
Chevrolet Bolt EUV 561
Hyundai Ioniq 5 397
Toyota RAV4 Prime 230
Chevrolet Bolt EV 217
Subaru Solterra 151
Nissan Ariya 145
Kia Niro EV 108
Hyundai Ioniq 6 95
Toyota bZ4X 94
Ford Mustang Mach-E 85
Hyundai Tucson PHEV 68
Kia EV6 65
Hyundai Kona Electric 64
Nissan LEAF 60
BMW i4 eDrive35 50
Kia Sportage PHEV 48
MINI Cooper SE Hardtop 2 Door 47
- 2,500 5,000 7,500
Number of rebates issued
Following the increase in the price cap from $50,000 to $55,000 as allowed by the 2022 Act, a
significant portion (57%) of MOR-EV Standard rebates were issued to vehicles in the highest
eligible price segment, between $50,000 and $55,000.
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Figure 3: Percentage of MOR-EV Standard Rebates Issued by Total MSRP Price Segment
4% 3% 15% 19% 57%
0% 20% 40% 60% 80% 100%
Percentage of Rebates Issued per Price Segment
$25,000-$30,000