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Heavy-Duty Vehicle Rebate Program



Many trucks don’t have to run on gasoline. Alternative fuel vehicles come in every shape and size. The Delaware Heavy-Duty Vehicle Rebate Program provides funds to help offset the costs of purchasing a heavy duty dedicated compressed natural gas (CNG) truck.

The program proves rebates of $20,000 for new qualifying heavy duty CNG class 7 or 8 vehicles (GVW >26,000 pounds). It is aligned with Delaware’s commitment to innovation in the transportation sector, reducing greenhouse gases, and improving Delaware’s air quality. The program will accept applications for through June 30, 2018, or until funding has expired.

Who is Eligible?

The Delaware Heavy-Duty Vehicle Rebate Program is open to Delaware commercial entities, non-profits, individuals or businesses located in Delaware or who have in-state affiliates in the State of Delaware. Each entity must have a Primary Point of Contact who will be responsible for ensuring that all paperwork is filled out correctly.

Motor carriers (fleets) are limited to five awards under this rebate program. Heavy duty trucks that have been previously registered (in any state) or paid for by the Motor Carrier (other than a vehicle down payment in order to receive the rebate) are ineligible. Pre-owned electric trucks are not eligible for this grant program. Passenger-carrying (public transit, etc.) vehicles are not eligible.

Applicants to this program will be required to submit proof of ordering the class 7 or 8 vehicle, as well as proof of payment. Once the heavy duty truck is under the ownership of the motor carrier, the rebate will be released from the State of Delaware. Fleets must work through the dealer or dealer’s representative to be eligible for this program. Please see the full Description and Guidelines for additional details.

How to Apply

Complete an application form to start the process of applying for a Heavy-Duty Vehicle Rebate. The process includes a number of steps that follow specific timing requirements.  The Primary Point of Contact is responsible for making sure that all forms are complete and that all steps in the process are completed on time.

Once the application process has been completed and the vehicle has been delivered, the Primary Point of Contact submits a reimbursement package. As with the application, the reimbursement forms are designed to be filled out electronically.  Applicants should fill out the forms electronically before printing and signing them. Any illegible documents will be returned, unprocessed, to the Primary Point of Contact.

The reimbursement package contains a checklist listing all of the documents that need to be submitted.

In order to receive a rebate, applicants must submit a Delaware W-9 form. The W-9 form must be submitted online.

About Taxes

This rebate may be considered taxable income by the U.S. Internal Revenue Service and the Delaware Department of Revenue. It shall be the sole responsibility of the recipient, individually, to seek professional advice and determine the tax consequences of this rebate.

Heavy-Duty Vehicle Rebate Program Application Process

The Primary Point of Contact submits an application form for a rebate. Applications should be submitted to the Delaware Division of Energy and Climate. Documents can be sent via email (DNREC.Transportation@state.de.us) or by US mail (100 W. Water Street, Suite 5A, Dover, DE 19904).
The Division of Energy and Climate reviews the application for completeness and sends a rebate acknowledgement letter to the Primary Point of Contact by email.
Within ten business days of receiving the rebate acknowledgement letter, the Primary Point of Contact signs and emails a commitment letter to the Division of Energy and Climate.
Within seven business days of signing a commitment letter, the Primary Point of Contact emails the 7-Day Form, and a vehicle purchase order, to the Division of Energy and Climate to confirm that the vehicle has been ordered.
Within 30 business days of signing a commitment letter, the Primary Point of Contact emails the 30-Day Form, including the Vehicle Identification Number (VIN) and delivery date, to the Division of Energy and Climate to confirm that vehicle delivery.
Within 120 business days of signing a commitment letter, the Primary Point of Contact delivers the vehicle to the motor carrier and sends a reimbursement package to the Division of Energy and Climate.

If additional time is needed to complete vehicle delivery, the Primary Point of Contact is responsible for alerting the Division of Energy and Climate and emailing the 120-Day Extension Form to request an extension.

The Division of Energy and Climate reviews the reimbursement package and submits approval for the release of funds.
Funds are released and a check is sent to the Primary Point of Contact.

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