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)
Provides savings directly to purchasers and lessees of fuel cell, battery electric and plug-in hybrid electric vehicles. View eligible models.
Simply 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 300 percent of the federal poverty level) are eligible for increased rebate amounts.
|EV Type||Standard Rebate||Increased Rebate|
|Fuel cell electric||$5,000||$7,000|
|Plug-in hybrid electric||$1,500||$3,500|
To find out if you qualify for increased rebate amounts, see income eligibility.
CVRP Rebate Now – Preapproved Applicants
Car shoppers can get preapproved for their CVRP rebate online prior to visiting a dealership through Rebate Now, a pilot program currently offered only to San Diego County residents. You can use your preapproved rebate as a down payment at the time of sale or lease at participating dealerships countywide.
Federal EV Tax Credit
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 2018, and the tax credit phase out has begun.
|Tax Credit Amount||For Vehicles Delivered|
|$7,500||On or before Dec. 31, 2018|
|$3,750||Jan. 1 to June 30, 2019|
|$1,875||July 1 to Dec. 31, 2019|
|$0||After Dec. 31, 2019|