California tax credit for Electric Vehicles
The incentives come in two forms: tax credits and rebates.
Anyone purchasing a new plug-in hybrid or battery electric car — collectively called plug-in electric vehicles or PEVs — is eligible for a federal tax credit.
State and local credits and rebates, however, aren’t available everywhere. Information about them can be spotty, and because programs are susceptible to politics and budgetary issues, funding can be reduced or eliminated without warning.
Well-trained salespeople are usually up to date on plug-in vehicle incentives. But not all dealerships that sell plug-in electric vehicles have knowledgeable staffers. That complaint was raised repeatedly by consumers in a 2014 PEV shopping study conducted by the University of California, Davis.
Here’s what you need to know to make sense of it all.
The credit is determined by the vehicle’s battery size and all-electric range, so most battery-electric vehicles, or BEVs, qualify for the maximum of $7, 500. Plug-in hybrids, or PHEVs, almost always qualify for less because they typically have smaller batteries with less all-electric range. As of publication, the maximum credits available for various plug-in hybrids range from a low of $3, 793 for the BMW i8 to a high of $7, 500 for the Chevrolet Volt. (Tax credits for fuel cell vehicles can be more — the Toyota Mirai currently rates a credit of up to $8, 000.)
And because the amount is a credit against taxes owed and not a flat rebate, your total federal income tax bill determines the final value.
For example, if you purchase a plug-in electric vehicle with a maximum federal tax credit of $7, 500 and your total income tax bill that year is $8, 000, you’ll get the full benefit of the $7, 500 credit (and owe $500). But if your tax bill is $6, 200, you’ll be able to claim only a $6, 200 credit. The government won’t send you a check for the remaining $1, 300 and you can’t carry it over to the next year.
If you lease, the credit goes to the leasing company. But to encourage people to lease plug-in electric vehicles, leasing companies, which are usually owned by the automakers, often apply the rebate to the lease. That reduces your monthly payments and sometimes cuts the down payment that many leases require.
When does it expire?
The full-value tax credits expire for each plug-in electric vehicle manufacturer when it has sold 200, 000 qualifying cars. Then there’s a one-year period of quarterly reductions until that manufacturer’s plug-in vehicles no longer qualify for any federal assistance.
None of the automakers are close to hitting the limit. General Motors, which sells two plug-in hybrids and one battery-electric vehicle, became the first to cross the 100, 000 mark earlier this year. Tesla Motors has sold close to 100, 000 between its Model S and Model X battery-electric vehicles. It could also be the first to hit the limit as it ramps up production of its upcoming Model 3, for which it has taken nearly 400, 000 advance reservations.
This could change, but as of now, only 12 states offer financial incentives to purchasers and lessees of plug-in vehicles. Five states that used to offer incentives — Georgia, Illinois, Oregon, Tennessee and Texas — have canceled their programs. Several states have also added special fees for battery-electric vehicle owners to help offset the loss of gas tax revenue used to maintain state highways.
The good news for plug-in electric vehicle shoppers is that where they are available, state and local incentives are in addition to the federal tax credit. Here’s a list of the 12 states and the maximum incentives they currently offer (actual incentive may be less, depending on price of car):
|California||$2, 500 rebates for battery-electric vehicles and $1, 500 for plug-in hybrids, but special provisions for low-income purchasers and lessees can increase a rebate by up to $1, 500. Fuel-cell cars may be eligible for a $5, 000 rebate.|
|Colorado||$5, 000 tax credit; lessees get up to $2, 500|
|Connecticut||$3, 000 rebate|
|Delaware||$2, 200 rebate|
|Louisiana||$1, 500 tax credit (rises to $3, 000 in 2018)|
|New York||$2, 000 rebate|
|Rhode Island||$2, 500 rebate|
|Utah||$1, 500 tax credit|
|West Virginia||$7, 500 tax credit|
Unless otherwise noted, the programs are funded on a calendar- or fiscal-year basis and may run out of money.
Some states also provide cash rebates or tax credits for installing home electric-vehicle charging stations. Others provide incentives such as sales tax and license fee reductions, free parking, toll-road fee waivers and single-occupant use of carpool lanes. In a few states, communities and public utility companies offer cash incentives.How to cook turnip greens? Mom cleaning tips how to get ink out of furniture upholstery? music teachers helper how to forward What does vsc mean on a car? How to get mildew smell out of clothes? What does nein mean in german? How to abbreviate? How to fill out money order? How to enlarge penis? What are fruit flies? how will cd4 helper t cells be impacted if hiv What is the meaning of a moth? How to get on wheel of fortune? How to see deleted messages? what is a dietary helper What is mezcal? What does rate mean? What does a zit look like? User manual lg - tone platinum wireless in-ear how to tips? how to shut down chrome helper lioden what is a helper What are the best spray paint can tips? How to treat nerve pain? What are adrenal glands? What is gender dysphoria? How to get rid of flu? how to disable apps in browers helper objects How to play harmonica? How the cookie crumbles meaning? How to calculate dividend payout? What is meaning of priyanka? How much are tips at us nails for sns? What does cdn error mean on peacock? What is the meaning of focal length in camera? How to host a zoom meeting? What does yt mean in text? Where can ypu buy suface pro 3 pen tips? How to end period faster naturally? What kinda tips for pot delivery ca.? What does superset mean? What does optimize mean? What are good tricks on clash of clans? Tricks to remember how to spell the word language? What does it mean to be non binary? How much schooling to be a nurse? What are the rubber tips on earbuds called? what was mother little helper drug How to play mind tricks? What time does the buccaneers play today? Stat gel tips how many mm? How to stake cardano? What does consensus mean? What does dea mean? What are the side effects of trulicity? What is soy lecithin? what the hell is web helper What is the meaning of archaeologists? How to file extension for taxes? How to kill boxelder bugs? How to stream jeopardy? How to factory reset phone? How to enable 2fa fortnite? How to load a dishwasher? Why is my lip twitching spiritual meaning? What is the meaning of teachers? What is the meaning of a dreidel? What ego death meaning? How to train a goldfish to do tricks? What is the meaning of stussy? How to detox from sugar? Why are my nail tips translucent? What number of college students are nondrinkers? how to unpack wii u games without wiiu helper how to use steam inventory helper to count keys What is the meaning of bootleg fire? 10 tricks will forever change how you clean your house? How to do in text citations apa? What is toxic shock syndrome? What is candida? How to learn roller skating tricks? What does too mean? What is the meaning of specific gravity? Taylor swift look what you made me do video meaning? What does the name jason mean? How long does paint take to dry? How to block an email address in gmail? How to know when you're ovulating? How do you handle a student who tips over chairs? What is the most common birthday? How to properly apply nail tips? How to get rid of toenail fungus fast? What meat is beef tips? How to put snapchat on dark mode? What does a vertical angle look like? What is the meaning of the easter egg? Susan wolf meaning in life and why it matters? What does abjure mean? Tips on how to drive on dirt in race car? What does wryd mean? What does it mean when your platelets are high? How long should you cook brisket rib tips? How to add new tips on a bolo?