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Your Guide to Securing California’s EV Rebate Before Funds Run Dry

October 30, 2024

Federal incentives offer up to $7,500 in EV rebate for new electric vehicles (EVs) and $4,000 for pre-owned EVs.
The California Clean Vehicle Rebate Project (CVRP) offers rebates from $1,000 to $7,000.
Southern California Edison’s Pre-Owned EV Rebate offers up to $4,000 for qualifying used EVs, making it a great option for those looking to save on a second-hand electric car.

When it comes to electric vehicle (EV) rebates in California, we’ve seen significant updates that affect both new and pre-owned EV buyers. The savings are real, but here’s the thing – some of these programs are nearly out of money or have a large waiting list. The clock is ticking, and those rebates won’t be around forever.

Federal incentives for EVs purchased after 2023 offer up to $7,500 for new battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). On the pre-owned side, there’s a $4,000 federal tax credit available, which is a fantastic deal for anyone looking to save on a second-hand model.

And here’s where it gets even better. There’s no longer a minimum tax liability required for buyers transferring these credits at the point of sale. That’s right, you can take advantage of the savings without waiting for tax season.

In California, state rebates stack on top of federal incentives, making the offers even sweeter. The California Clean Vehicle Rebate Project (CVRP) is still a strong option, with rebates ranging from $1,000 to $7,000 on a new eligible zero-emission vehicle (ZEV).

That said, the program’s funds are running low, and applications received after September 6, 2023, are already on standby. As the program website notes, “Funds for CVRP are nearly exhausted.” So, if you’ve been eyeing a clean ride, this is the time to jump in before the doors close.

Your Guide to Securing California EV Rebate Before Funds Run Dry - Ford F-150 Lightning

If you’re worried about the upfront cost of going electric, don’t stress. California’s Clean Cars 4 All program is here to help. It’s designed to make hybrids and EVs more affordable for lower-income buyers, offering big incentives in major areas like South Coast and the Bay Area.

“The aim is to make clean vehicles accessible to every Californian,” states the California Air Resources Board (CARB). If you’re income-qualified, you could receive up to $9,500 in assistance.

But don’t overlook the opportunities for pre-owned vehicles. Southern California Edison’s (SCE) Pre-Owned EV Rebate is offering up to $4,000 for qualifying used EVs, making this one of the most attractive rebates for those on the hunt for a second-hand car. According to SCE, “This rebate helps make clean transportation affordable for more people while supporting the state’s climate goals.” With income-qualified rebates of $4,000, this could be your ticket to an affordable EV without compromising on the tech you want.

Across California, various municipal and regional programs provide additional savings. Take the Alameda Municipal Power rebate, which offers up to $2,000 for a used BEV under $22,000. Or check out Los Angeles Department of Water and Power’s Charge Up LA! initiative, where rebates for used EVs go up to $2,500, which is a solid boost if you’re looking for a pre-owned model.

And for businesses or individuals in the market for something a bit larger, don’t forget the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). It’s offering between $20,000 and $240,000 for medium and heavy-duty EVs, with no income restrictions. That’s serious money on the table, especially if you’re thinking about upgrading your fleet or business vehicles.

2024 Tesla Model 3 Highland test drive at Electrify Expo

There are definitely trade-offs to consider, especially with pre-owned vehicles, like potential wear and tear, but these rebates make the decision a lot easier. A solidly vetted used EV can offer the same tech, like advanced driver-assistance systems (ADAS) and always-on displays, without the steep price of buying new. Plus, the additional savings make these deals even harder to pass up.

All this to say, the California EV rebate programs are changing fast, and there’s real money on the table – thousands of dollars in savings. But with funds running low and deadlines looming, you’ll want to move quickly, whether you’re all in for an electric vehicle or just curious about trying out a hybrid.