2022 Tax Incentives for EV Purchases in California
There are lots of reasons to purchase an electric vehicle (EV). Not only are EVs better for the environment because they don’t use gas, which is a fossil fuel, but charging up the battery can be more affordable than filling up your tank. There are some performance advantages to EVs as well, including almost immediate acceleration and a super quiet ride. One of the biggest reasons to purchase an EV, however, are the tax incentives.
Tax Incentives for EV Purchase in CA
A long list
There’s a long list of potential incentives, and some of them depend on the type of vehicle you choose and for what you are using the vehicle. For example, there are incentives for both private or company use, as well as some that are county or city specific. You’ll want to do some research to make sure that you take advantage of all eligible tax incentives and rebates. Your dealership should be able to help you identify for which incentives you qualify.
CVRP
One of the most known offers is California’s Clean Vehicle Rebate Project (CVRP) which gives rebates for zero-emission vehicles. Right now, the incentive is up to $7,000 for the purchase or lease of qualifying vehicles including electric, plug-in hybrid electric and fuel cell vehicles. This incentive is available until the funding is depleted. It’s easy to apply for this rebate as the application and all necessary documents can be submitted online. Once reviewed and it’s determined that you qualify, you’ll receive a rebate check.
Clean Fuel Reward Program
The Clean Fuel Reward Program provided by the California Air Resources Board provides up to $750 for qualifying new vehicle purchases or leases. The $750 is applied to the purchase price from participating dealerships of EVs with a battery capacity greater than 5 kWh.
More tax incentives coming
New legislation is being reviewed that would boost the federal $7,500 incentive up to potentially $12,500. This would be a result of President Biden’s Build Back Better bill. The legislation would maintain the $4,000 for the base tax credit, plus there would be $3,500 for vehicles with a battery that is at least 40 kWh. Another $4,500 will be provided for EVs made in the U.S. with union labor and $500 for a U.S.-made battery. Another change is that currently the tax credit is nonrefundable (meaning is goes toward your taxes owed, but you don’t get a check) but it would turn into a refundable tax credit (meaning the government would issue you a check). Some other qualifications apply, and your dealership will be able to help you navigate any new tax incentive legislation if/when it is passed.
Tax Incentives Make EV Purchase Attractive
California’s tax incentives for EV purchase make owning an electric vehicle even more appealing. When you include environmental, fuel and other benefits of owning an EV, tax incentives just add to the total package that an EV offers. Plus, with potentially larger tax incentives on the way for 2022, there’s no time like the present to consider an EV purchase.
Learn more about available incentives
Contact any of our dealerships to learn more about which tax incentives their vehicles qualify.