State and Federal Electric Vehicle Incentives
Learn more about the incentives that make electric vehicles more affordable
Incentives that give you greater buying power!
The benefits of driving an electric vehicle (EV) are terrific...
- Greatly reduced fueling costs
- Minimal parts and maintenance
- Reduces your carbon emissions
- Exhilarating acceleration and power
Best of all, rebates and incentives save you money when you purchase or lease a new EV, helping make your transaction more affordable.
Clean Vehicle Rebate Project (CVRP)
Meet the eligibility requirements to receive cash back on your new electric vehicle based on the type selected. Applicants with low-to-moderate household incomes (less than or equal to 400 percent of the federal poverty level) are eligible for increased rebate amounts.
|EV Type||Standard Rebate||Increased Rebate|
|Fuel cell electric||$4,500||$7,000|
|Plug-in hybrid electric||$1,000||$3,500|
Clean Vehicle Assistance Program (CVA Program)
Participants who receive a vehicle grant buy-down and/or financing through the CVA Program, may be eligible to participate in the Clean Vehicle Rebate Project (CVRP). The CVA Program provides grants and financing assistance to low-income Californians for the purchase of a new or used hybrid or electric vehicle. Please note that CVRP may have different vehicle and applicant eligibility requirements than the CVA Program. For more information on the CVA Program and its eligibility requirements please visit the website: https://cleanvehiclegrants.org/.
California Clean Fuel Reward (CCFR)
CCFR is available to all California residents who buy or lease a new eligible vehicle through a participating retailer. This instant electric vehicle reward is offered on a sliding scale, depending on battery size, up to $1,500.
CCFR and CVRP Rebate Now can be combined for CCFR recipients who also meet all CVRP eligibility criteria.
For more information on CCFR and its eligibility requirements, please visit the website: https://cleanfuelreward.com.
Federal Tax Credits
The federal government provides a substantial tax credit for new battery electric and plug-in hybrid EVs, ranging from $2,500 - $7,500, depending on the capacity of the EV’s battery. All battery electric vehicles are eligible for the full $7,500, whereas some plug-in hybrids with smaller batteries receive a reduced amount. Check out the breakdown of tax credit amounts.
Note that the federal EV tax credit amount is affected by your tax liability. For example, if you purchase an EV eligible for $7,500, but you owe only $4,000 in taxes, you will receive a $4,000 credit.
If you lease your EV, the tax credit goes to the manufacturer. However, dealerships often factor the tax credit into the cost of the lease, lowering your down payment or monthly payments. Ask the sales rep how the tax credit is being applied.
Once a manufacturer’s EV sales exceed 200,000, the available tax credit enters a phase out period that begins with full rebate amounts in that quarter and the following quarter. After this grace period, the tax credit is cut in half for the next two quarters. Then the amount is cut in half again for a final two quarters before it is phased out completely. Following is an example of a battery electric vehicle that reached the 200,000 sales mark in July 2020, and the tax credit phase out has begun.
|Tax Credit Amount||For Vehicles Delivered|
|$7,500||On or before Dec. 31, 2020|
|$3,750||Jan. 1 to June 30, 2021|
|$1,875||July 1 to Dec. 31, 2021|
|$0||After Dec. 31, 2021|
Additional tax credits are available through December 31, 2021 for the purchase of fuel cell electric vehicles (FCEVs), zero emission motorcycles (ZEMs) and EV charging equipment. Maximum credit amounts are $8,000 for FCEVs, $2,500 for ZEMs, $1,000 for residential EV charging equipment and $30,000 for commercial EV charging equipment. Contact the Internal Revenue Service or a certified accountant for more information.