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California Clean Vehicle Rebate Project increases incentives for low- and moderate-income drivers

In order to make clean vehicles more accessible to a greater number of California drivers, especially in communities that are highly impacted by air pollution, the Clean Vehicle Rebate Project (CVRP) is implementing increased incentive levels for low- and moderate-income consumers and high-income eligibility caps.

The California Air Resources Board approved the changes in June 2015, as directed by the Charge Ahead California Initiative established by Senate Bill 1275 (De León). They will apply statewide to vehicle purchases or leases effective 29 March 2016.

Since 2010, the CVRP has issued more than $291 million in rebates for more than 137,200 vehicles, according to the Center for Sustainable Energy (CSE), which administers the ARB program. Rebates cover a range of battery electric, plug-in hybrid electric and fuel cell vehicles.

For low- and moderate-income consumers, CVRP rebates for all types of eligible light-duty passenger vehicles are being increased by $1,500. When combined with the $7,500 federal tax credit for battery electric and plug-in hybrid electric vehicles, the California rebates provide savings of up to $11,500. To qualify for the increased rebates, applicants must have household incomes less than or equal to 300 percent of the federal poverty level. For an individual, the gross annual income limit is $35,640, and for a household of four, it is $72,900.

Higher income consumers will not be eligible for CVRP rebates if their gross annual income exceeds $250,000 for single tax filers, $340,000 for head of household filers and $500,000 for joint filers. Income levels will be determined by the amount reported on the applicant’s federal tax return. The caps do not apply to fuel-cell electric vehicles, which represent less than 1 percent of CVRP’s applications and qualify for rebates of $5,000.

Applicants may be required to provide proof of income.

Additional clean vehicle rebates based on income eligibility are available in disadvantaged communities in the South Coast Air Quality Management District and the San Joaquin Valley Air Pollution Control District. ARB’s Drive Clean website offers a guide for clean vehicle incentives at DriveClean.CA.gov.

The incentives, and this project, are part of California Climate Investments, which use proceeds from the state’s cap-and-trade auctions to reduce greenhouse gas emissions while providing a variety of additional benefits to California communities.

Comments

HarveyD

Why are FCEVs limited to about 50% of PHEVs and BEVs subsidies?

Good idea to tie subsidies to people earnings?

Subsidies could start to drop progressively with earnings of above $100K and to zero above $200K?

Lad

I thought the Feds were bad enough by taking a simple rebate and turning it into some damn tax offset device that cuts half the people out of the mix. Now the state comes along with a valueless jimmy to complicate a simple rebate into something that requires vast study time to decide on buying an EV by adding a means test. There are too many Lawyers with time on their hands in Government. Give 'em a wrench and have them tighten bolts so they cause less trouble for the working people.

electric-car-insider.com

@Lad - welcome to the sausage factory.

OP> The caps do not apply to fuel-cell electric vehicles, which ... qualify for rebates of $5,000.

Because... ?

HarveyD

Another easy solution would be to give EVERBODY above 18 a minimum wage of $36K/year and a flat (à la Trump) 20% Income Tax (for everybody including small and large firms) on all net earnings above $36K without any other deductibles. The $36K/year would be adjusted to the cost of living.

Children between 0 and 18 would receive a monthly allowance to compensate.

Married and single adults would get the very same treatment.

Arnold

eci,

It is in California, so no FC's made locally.Or the U.S.

Not that many people receiving the subsidy would be buying the current locally made offering?

lad,

Be careful what you wish for.

SJC

There could be an incentive to buy used LEAFs. $7500 minus $1500 would help pay the tax, license and registration. A lot of the monthly payment would come from fuel savings. Cleaner air and less imported oil helps everyone.

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