Your Guide to California’s Electric Car Rebates and Incentives
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Electric vehicles are among the most popular cars in California. Not only are many Californians environmentally conscious, but the state has some of the best infrastructure in the nation for electric vehicles. To further encourage EVs, past and current California electric car rebate offerings make these vehicles more affordable for all residents.
Introduction to California's Electric Car Incentives
California offers a range of rebates and incentives for EV buyers to reduce purchasing costs. An electric car rebate in California can make all the difference between this vehicle type being within your budget or unaffordable. We dive into some of the most popular programs to help you understand how these rebates work, how you can get one for eligible vehicles, and how EVs can impact your car insurance in California.
California Clean Fuel Reward: Overview and Benefits
Launched in 2020, the California Clean Fuel Reward sought to connect potential EV buyers with resources and information about EV ownership. It created the Clean Vehicle Rebate Project (CVRP), which offered rebates of up to $7,500 for the purchase or lease of a new, eligible zero-emission vehicle. This included electric, plug-in hybrid electric, and fuel-cell electric vehicles. However, as of November 8, 2023, the program is no longer accepting new applications.
Instead, there are several smaller California electric car rebate programs:
- Pre-Owned EV Rebate: Offered by Southern California Edison (SCE), this program provides a $1,000 or $4,000 rebate on the purchase or lease of a pre-owned EV based on household income.
- Charge Ready Home Rebate: Another SCE rebate, this program offers up to $4,200 in rebates for installing a Level 2 EV charger within 120 days of purchasing or leasing an EV.
- Used Electric Vehicle Rebate Program: An offering of the Los Angeles Department of Water and Power (LADWP), this local program gives rebates for purchased or leased EVs. You can submit an application online or by mail.
Maximizing Savings: Federal EV Tax Credits
While California has some of the best state rebate programs for electric vehicles, federal tax credits offer additional incentives. The federal rebate program offers eligible applicants up to $7,500 in federal tax credits for buying a new, qualified plug-in EV or fuel-cell electric vehicle, although income limits apply. The credit is available to individuals and their businesses, and eligibility requirements include:
- The vehicle must be for your own use, not for resale.
- The vehicle must be used primarily in the U.S.
- Your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly or a surviving spouse; $225,000 for heads of households; or $150,000 for all other filers.
Low-Income Assistance: Driving Clean Assistance Program (DCAP)
DCAP is another California electric car rebate program that provides incentives to eligible low-income consumers to purchase or lease new or used EVs. The consumer rebate offers up to $12,000 if you live in a disadvantaged community and you scrap an older vehicle, or up to $7,500 if you do not scrap an older vehicle.
The program also offers access to low-interest loans capped at 8%, access to transit passes or e-bikes, and up to $2,000 in additional incentives to offset charging costs.
Finding discounts on California auto insurance in addition to leveraging this program gives low-income individuals access to more environmentally friendly vehicles.
Exploring Local Utility Incentives for Home Charging
Several state rebate programs can offset the costs of installing charging units, and a number of utility companies in the state also offer their own version of a California rebate for an electric car. These include:
- Alameda Municipal Power (AMP): Rebates of up to $4,000 for the purchase of a pre-owned EV with a purchase price under $40,000
- Burbank Water and Power (BWP): Rebates of up to $1,000 for residential customers who purchase a pre-owned EV
- Central Coast Community Energy (CCCE): Rebates of up to $4,000 for residential, commercial, and public agency customers for the purchase of new or pre-owned EVs or electric motorcycles (plus up to a $10,000 rebate for installing Level 2 charging stations at home or workplaces)
- Pacific Gas & Electric (PG&E): Rebates of $1,000 to residential customers for the purchase of a pre-owned EV
- Pasadena Water & Power (PWP): Rebates of $250 to residential customers for the purchase or lease of an eligible new or pre-owned EV, plus an additional $250 if purchasing or leasing from a Pasadena dealership
How to Apply for Electric Car Rebates and Incentives
While the CVRP is closed to new applications, California electric car rebates offered by local utilities offer streamlined online application processes. If you're thinking about purchasing a clean air vehicle or zero-emission vehicle like an EV or fuel-cell EV, check your eligibility on your utility provider's website.
To claim the federal tax credit, you must submit Form 8936 with your federal tax return.
Compare Car Insurance Quotes to Save More on Your EV
Everybody wants to save money. If you can reduce your carbon footprint and get a consumer rebate or tax credit at the same time, why wouldn't you?
Once you have your EV, if you're looking for cheap car insurance in California, it's easier to find than you think. Use EverQuote's comparison tools to get real-time quotes and find the best coverages for your budget.