Income Eligibility

Income eligibility requirements were introduced to the program for individual applications on March 29, 2016.

At the time an applicant submits a signed application for a rebate, the most current CVRP Implementation Manual available, as well as the Terms and Conditions signed by the applicant, will apply. Both the Terms and Conditions and Implementation Manual in place at the time of application submission will determine the applicant’s eligibility for the program. These governing documents are updated several times every year and changes may impact how an applicant’s income is calculated, and therefore the applicant’s eligibility for the program. The next scheduled updates to CVRP governing documents can be found in the CVRP FAQs.

Gross Annual Income Definition

For the purposes of CVRP, gross income includes both taxable and non-taxable income sources. This includes, but is not limited to, the following.

Wages, unemployment, workers' compensation, Social Security, Supplemental Security Income, public assistance, veterans' payments, survivor benefits, pension or retirement income, interest, dividends, rents, royalties, income from estates, trusts, educational assistance, alimony, child support, assistance from outside the household, and other miscellaneous sources.

An applicant’s most recent federal tax return (as reflected on their IRS tax transcript) or other proof of income documentation as determined by the administrator may be used to help calculate gross annual income. CVRP considers an applicant’s most recent federal tax return to be the one most recently required to be filed by the IRS. CVRP switches to requesting a new tax filing year for applications submitted the day after the federal income tax filing due date.

For applications submitted using the 2021 or 2022 tax year, the Administrator will review the following sections of an applicant’s federal tax return as reflected on their IRS tax transcript to help determine gross annual income:

• On IRS Form 1040: Sum of lines 1–7. Line 9 is not used to calculate total gross income for the Clean Vehicle Rebate Project.
  and (if applicable),
• On IRS Form 1040 Schedule 1: Sum of lines 1-8.
  Note: If Line 8, “Other Income,” is negative, then it will not be included as part of CVRP’s income calculation, unless an exception applies. If Line 8 on Schedule 1 is negative, then the corresponding “Statement” filed with your 1040 must be provided. CVRP will review documentation for possible exceptions. One such exception is the inclusion of a negative community property adjustment. Net operating losses carried over from previous years are not an exception.

In some situations, more documentation will be requested at the discretion of the Administrator if tax transcripts do not appear to reflect gross annual income as defined by the Implementation Manual. An example is when an applicant's gross income as reflected on recent taxes is negative.

Only a portion of applicants are selected for income verification. Please do not submit copies of your federal tax return unless requested by a CVRP team member. See the Income Verification section below for information about income documentation that may be required.

Income Cap for Higher–Income Consumers

Consumers are not eligible for CVRP rebates if their gross annual incomes are above the thresholds listed below. The income cap applies to all eligible vehicle types except fuel cell electric vehicles.

AB 544 - High Occupancy Vehicle Decals

For a vehicle purchased on or after January 1, 2018, an applicant's participation in both the Clean Air Vehicle Decal Program and CVRP is based upon both the applicant's gross annual income and the vehicle type:

In other words, for higher-income consumers that purchase or lease a BEV or PHEV that do not qualify for a CVRP rebate, qualification for the Clean Air Decal should be unaffected. Higher-income consumers that purchase or lease a FCEV, and thus, are currently exempt from the income caps listed above, will not receive a rebate if they have received a Clean Air Decal, and vice versa.

The CVRP Rebate and California’s Clean Air Program are administered by different entities. Information and updates regarding California’s Clean Air Decals may be found at: www.arb.ca.gov/msprog/carpool/carpool.htm; or by calling (800) 242-4450. CVRP staff are unable to help consumers determine income eligibility for the decal program and recommend that consumers apply to the program that is most important to them.

Important Note: The CVRP Income Limits listed on the Decal Application from the DMV are not reflective of CVRP's income limits that went into effect on February 24th, 2022. Consumers are advised to always refer to the CVRP website for the most current information and to determine eligibility for the CVRP rebate program.

Increased Rebate Levels for Low– and Moderate–Income Consumers

Consumers with household incomes less than or equal to 400% of the federal poverty level are eligible for an increased rebate. The option to apply for an increased rebate is shown on the online application based on the income information the applicant provides. Applicants who are claimed as dependents are not eligible for increased rebates regardless of their income. Increased rebate amounts are available for fuel cell electric vehicles, battery electric vehicles and plug–in hybrid electric vehicles.

For the purposes of CVRP, a household includes all family members or other unrelated persons, including the rebate applicant, who reside together and/or share common living expenses. Income verification is completed for all members of the household ages 18 years and older. Note: Roommates who do not have a lease separate from the applicant are considered part of the applicant’s household.

The table below lists the Increased Rebate Household Income Limits effective July 12, 2023. These numbers are based on 400% of the 2023 Federal Poverty Level. For example, a family of 3 with a combined household income of less than $99,440 would qualify for the increased rebate.

Federal poverty level is updated annually, usually in the first calendar quarter of the year. CVRP applies the update on the second Wednesday in July of that year to all applications received on or after that date. The current levels can be found at https://aspe.hhs.gov/poverty-guideline.

Income Verification

Only a portion of applicants are selected for income verification. Businesses are not subject to income verification or income requirements. If you are not selected, you do not need to submit proof of income. If you are selected, you must provide proof of income. Failure to provide documentation for income verification will result in your application being canceled and no rebate issued. See our FAQ "How do I know if I’ve been selected for income verification?" for more information.

For applicants selected for income verification and who have not filed their most recent federal tax return, CSE will review the previous year’s tax return transcript to determine income eligibility. Wage and Income Transcripts may also be requested to create a complete financial picture for the most recent tax year. Filing an extension for the tax year being requested is not considered filing for the purposes of CVRP income calculations unless the extension has been processed by the IRS.

Consumers applying for standard rebate:

Standard rebate applicants selected^* for income verification must submit IRS Form 4506-C ^†, Request for Transcript of Tax Return, as proof of income. Please review the guidance in our Sample Supporting Documents to ensure you correctly complete this form and avoid delays in your verification.

Consumers applying for increased rebate:

Increased rebate applicants selected^* for income verification must submit:

• One completed Household Summary Form that reflects the current household
• A completed IRS Form 4506-C ^† for every household member age 18 and older currently living in the household, regardless of filing status

Additional documentation may be requested to provide complete details on income and household size.

Please review the guidance in our Sample Supporting Documents to ensure you correctly complete the forms above and avoid delays in your verification.

If an applicant participates in one or more of the public assistance programs on CVRP’s Categorical Eligibility List, they may also submit documentation confirming their participation for consideration by the Administrator. Note that depending on the program, documentation required may vary.

Categorical Eligibility List

• CalWORKs/TANF (Temporary Assistance for Needy Families Program)
• Medicaid
• Medi-Cal (Income Qualified Medi-Cal Only)
• SSI (Supplemental Security Income)
• CAPI (Cash Assistance Program for Immigrants)
• Section 8 Rental Certificate Program for Very Low and Extremely Low Income classifications (HUD)
• EFMP/CC4A (San Joaquin Valley APCD, South Coast AQMD/Clean Cars 4 All)
• Clean Vehicle Assistance Program (CVA Program)

If you have questions about this list, please call 866-984-2532.

^†You may request your Tax Return Transcript online, free of charge, by visiting the IRS Get Transcript website. This document may be submitted along with your 4506-C to support processing your application. Applicants will be required to self-request their transcripts in cases where CVRP is unable to obtain a copy from the IRS. For applicants who believe they may be marked for fraud, self-requesting your transcript in advance may help avoid delays in processing your application. If we cannot obtain a copy of your transcript within the required timeframe, your application will be cancelled, and you may be unable to re-apply. Eligibility will be reviewed based on the Terms and Conditions in place at the time a new application is submitted. Extensions will not be granted.

*You do not have to submit proof of income unless you have been selected for income verification.

Rebate Limit

Individual and business applicants are not eligible to receive more than one CVRP rebate either via direct purchase and/or lease as of December 3, 2019. Applicants who have not already met their rebate limit prior to December 3, 2019, will be eligible for one additional rebate. Those that have already met their two-rebate limit will remain ineligible for an additional rebate. Individuals or businesses that have met the rebate limit with non-fuel cell vehicles may apply for one additional rebate for an eligible fuel cell vehicle. This fuel cell vehicle exception does not apply to Rebate Now applications.

Traditional rental and car share fleets are subject to limits of 20 rebates per calendar year. Public fleets are limited to 30 rebates per calendar year.

Vehicle Eligibility

Eligible vehicles must meet requirements that include, but are not limited to, the following:

• Be on the list of Eligible Vehicles.
• Be new, as defined in the California Vehicle Code (CVC) Section 430, and manufactured by the original equipment manufacturer (OEM) or its authorized licensee. Vehicles considered new vehicles solely for determination of compliance with state emissions standards are not eligible.
• Be registered as new in California. Vehicles may not be purchased, leased, or delivered out of state. Purchases/leases must be made via a California purchase or lease contract. Vehicles ordered online and delivered outside of California are not eligible. The seller's address as reflected on the purchase or lease agreement must be in California.
• Have an odometer reading below 7,500 miles at the time of purchase or lease.

As of February 24, 2022, vehicles must meet the following criteria to be eligible for a rebate:

• Have a base Manufacturer Suggested Retail Price (MSRP) for the following vehicle categories:
  • Base MSRP of $60,000 or less for vehicles that fall under the Large Vehicles category. This includes minivans, pickups, and SUVs.
  • Base MSRP of $45,000 or less for vehicles that fall under the Cars category. These are all other light-duty vehicles classes (e.g.; hatchbacks, sedans, wagons, and two-seaters).

With the exception of fuel-cell electric vehicles, all vehicles must meet the base MSRP caps according to the listed vehicle categories above. Vehicle categories are based on EPA class. Check the CVRP Eligible Vehicles list to determine if a vehicle is eligible.

Funding Availability

If funds are not available at the time of your application, you may still apply and be placed on a rebate waitlist. Rebates for approved applications on the waitlist will be issued if additional funding from the state of California becomes available. If funds are available at the time you submitted your application, your rebate amount will be reserved when you apply online. You will receive your rebate if you meet all requirements and submit correct supporting documents within the given time frame.

Application Requirements

After applying online, submit complete all supporting documents online within 14 calendar days of application date. Applicants with canceled applications that cancel because required supporting documentation was not submitted within the required timeframe will need to re-apply. Eligibility will be reviewed based on the Terms and Conditions in place at the time a new application is submitted. Extensions will not be granted.

The name of the applicant must be listed on all original documentation. For tips and other guidance, please view sample supporting documents. Please contact the administrator immediately if there is a mistake on your application form. Submitted application forms with an incorrect applicant name will need to re-apply. Eligibility will be reviewed based on the Terms and Conditions in place at the time a new application is submitted. Extensions will not be granted.

Please visit What supporting documents do I need to submit for my application? for more details.

^*For CVRP preapproval applications, vehicle documentation (purchase/lease agreement and proof of registration) is not required until after the applicant has purchased or leased a vehicle. If the dealership claims the rebate and subtracts the preapproved rebate amount from the vehicle price, the dealership is required to submit these documents; if the applicant claims the rebate, the applicant is required to submit them in order to receive the rebate payment.

Ownership Requirement

Consumers must retain ownership of the vehicle in California for a minimum of 30 consecutive months immediately after the vehicle purchase or lease date. Original lease terms of at least 30 months are required for program eligibility.

The new vehicle must be registered with the California Department of Motor Vehicles (DMV) for a minimum of 30 consecutive months^* for use in California. Any government-owned vehicle not registered with the California DMV is still required to operate within California for 30 consecutive months immediately after the vehicle purchase or lease date.

Rental and car share fleets can select a reduced rebate amount and reduced ownership requirement.

*Note: CARB verifies vehicle ownership through periodic checks of Vehicle Identification Numbers (VINs) in the California DMV database. If a vehicle purchaser or lessee sells or returns the rebated vehicle to the dealer, CARB or its designee reserves the right to recoup CVRP funds from the original vehicle purchaser identified on the rebate form and may pursue other remedies available under the law for unauthorized early termination of vehicle ownership.

If you do not retain ownership or register the vehicle for 30 consecutive months, please contact CVRP staff.

Get the Details

The CVRP Implementation Manual is the governing document for CVRP. You can find detailed information on eligibility and program implementation in it.

The CVRP Terms and Conditions contain a summarized version of the requirements found in the Implementation Manual. You must agree to the Implementation Manual and Terms and Conditions as part of the rebate application process.