In 2023, Californians interested in purchasing battery electric, plug-in hybrids, and hydrogen fuel cell vehicles will be eligible for cash incentives in the form of state-funded rebates, as per The San Diego Union Tribune.
Offered incentives in 2023
Remarkably, additional incentive programs will rise as the year goes on. The Air Resources Board provided a $3,000 boost to rebate amounts to encourage Californians with low and moderate incomes to buy zero-emission vehicles.
| Zero-emission vehicles | Rebate |
| Battery electric vehicle | $7,500 |
| Hydrogen fuel cell vehicles | $7,500 |
| Plug-in hybrids | $6,500 |
For purchasing an EV or hydrogen fuel cell vehicle, qualified buyers will receive $7,500; for plug-in hybrids, they will receive $6,500.
These incentives will go into effect in February, and 30-month leases will qualify for rebates.
Who are the low- to moderate-income people?
Low to moderate income is now considered by the Clean Vehicle Rebate Project to be 400% of the federal poverty level, depending on the household size.
To put it simply, they are a household with an income of $54,000 or less for a single individual and $111,000 or less for a household with four members.
High prices impede California’s 2035 target
Policymakers aim to promote zero- and low-emission vehicles since California will ban the sale of new internal combustion engine vehicles by 2035.
Unfortunately, the average EV costs $67,000, making it unaffordable for most low and moderate-income customers. Therefore, rebates will fill in some of the gaps.
According to California Transportation Programs for the Center for Sustainable Energy Director Jonathan Changus, incentives make it possible for low- and middle-income households to purchase electric vehicles despite their high demand.
“As we’re seeing demand increase for EVs, the folks that are purchasing them are of means. Without the incentives though, the low and moderate income families are not going to have access to cleaner, lower maintenance vehicles.”
Jonathan Changus, California Transportation Programs for the Center for Sustainable Energy Director
Disqualified people on the government rebates
There will be no rebates for taxable incomes higher than a certain amount. These are the following people who earn more than these maximum gross annual incomes:
- $135,000 for single filers
- $175,000 for the head of household
- $200,000 for joint filers
Other government initiatives to boost ZEV uptake
Clean Cars 4 All program
Rebates come from the state’s general fund in the 2021–22 fiscal year budget; other incentives will come in 2023. The Clean Cars 4 All program will be available in the San Diego area in the first half of the year. It will provide generous grants for lower-income drivers who will trade in their gasoline-powered vehicles and trucks.
San Diego County Air Pollution Control District rebate
Furthermore, the San Diego County Air Pollution Control District will offer EVs and plug-in hybrids a $9,500 rebate. Customers can use this voucher to make purchases from participating merchants.
To be qualified, you must earn less than $83,250 per year for a family of four or 300 percent of the federal poverty level. You will also receive an additional $2,000 if you meet specific needs-based criteria.
SDG&E rebate
Last month, San Diego Gas & Electric received approval from the California Public Utilities Commission for its rebate initiative. The Pre-Owned EV Rebate Program will offer $1,000 rebates for all customers and $4,000 for low-income customers who qualify.
Low Carbon Fuel Standard credits
Notably, about $5 million per year is in the three-year program budget, funded by Low Carbon Fuel Standard credits. They expect this to start in the second quarter of 2023.
Inflation Reduction Act’s Federal Tax Credit
The federal government also offers a tax credit of up to $7,500 for buying an EV. Still, there are complicating factors. As of the recently enacted Inflation Reduction Act, vehicles must be assembled in North America to qualify. This bill made confusion and complaints from some automakers. It will delay the issuing of guidance for tax credits until March.
But once it’s resolved, California drivers who qualify for SDG&E, Clean Cars for All, and the Clean Vehicle Rebate Project will also be eligible for the federal tax credit.
By 2030, California Governor Jerry Brown set a 5 million zero-emission vehicles goal. However, as of October 1, only 1.3 million vehicles were on state roads and highways. According to recent information from the California New Car Dealers Association, 18.7% of all new cars sold in the Golden State are electric vehicles or hybrid plug-ins.
Nonetheless, these government initiatives would significantly aid in encouraging citizens from all economic classes to switch to clean mobility.
