Consider purchasing an electric vehicle in the warm state of California. Well, the following information might influence your choice. Beginning on February 28, the Golden State will increase its rebates to make it easier for people with low to moderate incomes to purchase their ideal electric vehicle (EV).
So, from where is this extra cash coming? Greetings from the California Air Resources Board and the CVRP (California Clean Vehicle Rebate Project). Yes, those who support keeping the air clean and fresh support your decision to switch to electricity.
Who gets to ride this wave of rebates, though? Tesla’s Model 3 and Model Y appear to be ready to surf this electric wave. Hey, the news just got better thanks to a price drop by Tesla on these EV miracles.
Hold your horses, though; each program’s eligibility requirements are different, including the Federal Tax Credit and the CVRP. To claim that you require a golden ticket in order to enter the chocolate factory is absurd! If you’re all about those incentives, Melanie Turner, a representative for the Air Resources Board, says it’s crucial to verify the lists of vehicles that qualify for both programs.
CVRP Savings and Income Thresholds: A Comprehensive Guide
The ordinary CVRP is the first one; many Californians are eligible for it. The typical rebate sums? A hydrogen fuel cell car will cost you $4,500, a battery-powered car will cost you $2,000, and a plug-in hybrid will cost you $1,000. The threshold for solo filers is $135,000, for head of household it is $175,000, and for joint filers it is $200,000. Here is the income scoop.
These refunds will be in high demand starting in February. A fuel cell electric vehicle cost $7000, a battery electric vehicle cost $4500, and a plug-in hybrid cost $3500. Previously. The surprise is that this data has recently undergone a makeover. A fuel cell or battery-electric vehicle now costs a cool $7,500, while a plug-in hybrid electric vehicle costs $6,500.
You qualify if your annual income is up to 400% of the federal poverty threshold. Here’s the lowdown on those restrictions:
$54,360 for a single-person household
$73,240 for a two-person household
$92,120 for a three-person family
$111,000 for a four-person family
$544,580 for a family of four
Rebate checks typically arrive 90 days after your application is approved.
Making the Most of Available Federal Tax Credits and EV Incentives
Folks, that’s not all! Federal tax credits are also available. You may be eligible for a clean car tax credit of up to $7,500 if you purchase a new plug-in electric vehicle or fuel cell vehicle in 2023.
Now, to qualify for this credit, your modified adjusted income must be less than $150,000 for single filers, under $225,000 for heads of household, and under $300,000 for married couples filing jointly.
If you purchase one from an authorized dealer for $25,000 or less, you may be eligible for a credit of up to $4,000, or 30% of the transaction price. The maximum income for this one? $75,000 for other taxpayers, $112,500 for heads of households, and $150,000 for married couples filing jointly.
You now have a serving of California’s EV tax credit with a side of sunshine. There is some serious green waiting for you, whether your electric wonder of choice is a Tesla or another marvel.