California EV Tax Credit: Estimating Benefits for Electric Car Purchases
The Golden State is increasing its rebates to assist individuals with low to moderate incomes purchase their electric vehicle (EV) of choice.
The eligibility requirements for the California Clean Vehicle Rebate Project (CVRP) and the Federal Tax Credit are distinct.
If you have an interest in receiving benefits, Melanie Turner, a spokesperson for the Air Resources Board, stresses the importance of reviewing the appropriate vehicle lists for both programs.
Californians Are Eligible for CVRP
First, the standard CVRP, into which a large number of Californians qualify.
The threshold for single filers is $135,000, for heads of household it is $175,000, and for married individuals filing jointly it is $200,000.
Beginning in February, these will be the incentives that will be in high demand. Previously, the price of a fuel-cell electric vehicle was $7,000, the price of a battery electric vehicle was $4,500, and the price of a plug-in hybrid was $3,000. However, the clincher is that these figures were recently redesigned. A fuel cell or battery-electric vehicle currently costs $7,500, whereas a plug-in hybrid electric automobile costs $6,500.
Up to 400 percent of the federal poverty level is permissible.
Here’s the skinny on those restrictions:
- $54,360 for a single-person household
- $73,240 for a two-person household
- $92,120 for a three-person household
- $111,000 for a four-person household
- $129,880 for a five-person household
In most cases, rebate payments are issued within ninety days of a successful rebate application.
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New Plug-in Electric Eligible for Tax Credit
If you buy a brand-new plug-in electric vehicle as well as fuel cell vehicle in 2023, you could be qualified for a $7,500 tax credit.
To qualify for this credit, your modified adjusted gross income must be less than $300,000 if you’re married filing jointly, less than $225,000 if you’re filing as head of household, and less than $150,000 for all other filers.
If you purchase one from an authorized seller for $25,000 or less, you could receive a credit of a maximum of $4,000 equal to 30% of the purchase price.
What are the revenue limits for this?$150,000 for married people filing jointly, $112,500 for individuals, and $75,000 for everyone else.
Source: MARCA
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