California is discontinuing its popular electric car rebate program, which frequently runs out of funds and has large waiting lists, in order to concentrate on offering incentives primarily to low-income car buyers.
The Clean Vehicle Rebate Project, which has been in operation since 2010, will come to an end this year when it runs out of funds. Instead, the state will extend a program next year that only provides subsidies to low-to-middle income individuals — those who have a harder time affording electric vehicles.
Who Is Eligible for Electric Car Rebates?
The income constraints will be significantly stricter. According to the California Air Resources Board, Californians that earn more than 300% of the federal poverty level will no longer be eligible for a state subsidy when purchasing an electric vehicle.
That amount is currently $43,740 for a single person as well as $90,000 for a family of four, with sliding grades based on household size.
Persons earning up to $135,000 as well as joint filers earning up to $200,000 eligible under the current program, which is being phased out.
The incentives for electric vehicles ranged from $7,500 for low-income households to $2,000 for higher-income households.
The Clean Cars 4 All program, which is presently available only in the five biggest air districts, is set to be expanded statewide next year.
The redesigned program would provide residents across the state with up to $12,000 to scrap as well as replace their older gas-powered vehicles with cleaner choices.
Those who do not want to get rid of their old automobile can apply for up to $7,500 in purchase grants.
Car buyers may also be eligible for a $7,500 federal tax credit on certain automobiles, with income limits of $150,000 per person and $300,000 for married couples filing jointly.
Read More: Rockford Passes Three-Year Property Tax Rebate Initiative
California Attempting New Model Cars Be Zero-Emission
California is attempting to electrify its 25 million cars, lessen the state’s dependency on fossil fuels, and clean up its severe air pollution.
To that end, the state requires that 35% of new car models sold in California in 2026 be zero-emissions, rising to 68% in 2030 and 100% in 2035.
For the mandate to be successful, the government must ensure that individuals of all economic levels within the state can purchase electric vehicles.
Read More: 3 Compelling Reasons To Share A Bank Account With Your Spouse