Car buyers should check the eligibility requirements for the CVRP and the Federal Tax Credit when considering incentives upon their purchase, reminded Melanie Turner, a spokesperson of the Air Resource Board.
Incentives for California Clean Vehicle Rebate Project
Most California residents qualify for the standard CVRP as long as they don’t exceed income cut-offs. Income cut-offs for single filers are $135,000, $175,000 for head-of-household, and joint filers $200,000.
The standard rebate for a hydrogen fuel cell vehicle is $4,500, a battery electric vehicle is $2,000, and a plug-in hybrid is $1,000. Buyers with low to moderate income will get a bigger rebate. Currently, those vehicles’ rebates are $7,000 for a hydrogen fuel cell vehicle, $4,500 for a battery electric vehicle, and $3,500. Several reports have also indicated that the rebates will increase after February 28. It should be noted that the rebate checks are usually sent within 90 days once the application is approved.
The California Clean Vehicle Rebate Project, managed by the California Air Resource Board, will fund the increased incentives for buying EVs. Buyers with a low to moderate income will expect a higher rebate when purchasing eligible EVs.
Federal Tax Credits
The federal offer two options of tax credits: new clean car credit and used clean car credit. In the latest clean car credit, eligible fuel cell or plug-in electric vehicles may qualify for a credit of up to $7,500. To qualify for this credit, the modified adjusted income limit for married couples is $300,000, heads of households is $225,000, and other filers are $150,000. You can also check the full IRS guidance on this website.
Meanwhile, the used clean car credit has started this year. People who purchase a qualified used electric or fuel cell vehicle from a licensed dealer will get a $25,000 credit or less. The eligibility requirement for this program is based on the modified adjusted income limit: $150,000 for married couples, $112,500 for heads of households, and other filers are $75,000. You can also check this website for complete guidance on the used vehicle.
Meanwhile, KCRA reported that Tesla’s Model 3 and Model Y are the latest electric vehicle to for a CVRP rebate after the company reduces the prices of the said models. You can apply for a rebate if you ordered on or before January 12, 2023.