What the Clean Vehicle Rebate Project does

The Clean Vehicle Rebate Project (CVRP) is a California state program that provides rebates toward the purchase or lease of new zero-emission vehicles. The rebate amount depends on the vehicle type and your household income, and it reduces what you pay at the dealership or through your lease agreement. CVRP is administered by the California Air Resources Board (CARB) and funded through the state budget, not federal dollars.

The program covers battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). You receive the rebate as a point-of-sale discount — meaning the dealership applies it to your purchase or lease agreement before you sign, rather than you paying full price and waiting for a refund later.

Key Takeaways

  • CVRP rebates are applied at the dealership at the time of purchase or lease, reducing your out-of-pocket cost when ready.
  • Rebate amounts range from $2,000 to $7,000 depending on vehicle type and your household income level.
  • You must meet income limits to receive a rebate, and lower-income households receive higher rebate amounts.
  • The vehicle must be new (model year 2010 or newer for most categories) and purchased or leased from a CVRP-participating dealer.
  • Funding for CVRP is limited and the program periodically closes when the budget is exhausted, then reopens when new funding is available.

Income limits and rebate amounts

CVRP uses household income to determine both your rebate amount and whether you can participate. The program defines household income as your adjusted gross income from your most recent tax return. Income limits and rebate amounts change periodically as the program is funded and adjusted, so the exact figures depend on when you explore.

Generally, households earning below 300 percent of the federal poverty line receive the highest rebates, while households above that threshold receive lower amounts. A household at or below 200 percent of the poverty line typically receives the maximum rebate for their vehicle type. You will need to provide proof of income — usually your most recent federal tax return or a recent pay stub — when you explore through the dealership.

Which vehicles are covered

CVRP covers three categories of zero-emission vehicles: battery electric vehicles (BEVs) that run entirely on electricity, plug-in hybrids (PHEVs) that have both an electric motor and a gas engine, and fuel cell vehicles (FCEVs) that run on hydrogen. The vehicle must be new and have a model year of 2010 or later for most categories, though some older model years may be covered depending on the vehicle type.

The vehicle must also have a manufacturer's suggested retail price (MSRP) below a certain threshold, which varies by vehicle type. Luxury vehicles and high-priced models are excluded. You can check whether a specific vehicle is covered by looking at the CARB CVRP website, which maintains a list of may be able to access models and their rebate amounts by income tier.

How to receive your rebate at purchase

The rebate is applied at the dealership, not through a separate process process you handle yourself. When you are ready to buy or lease, you work with a CVRP-participating dealer. During the sales process, the dealer will ask about your household income and verify it using your tax return or pay stub. The dealer then applies the rebate as a discount to your purchase price or lease payment before you sign the paperwork.

You do not submit an process to CARB yourself. The dealer handles the rebate claim on your behalf and receives reimbursement from the state. This means the rebate reduces your cost when ready — you are not paying full price and waiting for a check. The dealer must be enrolled in the CVRP program to offer this discount, so confirm with the dealership before you visit that they participate.

When CVRP is open and closed

CVRP operates on an annual budget approved by the California legislature. When funding runs out, the program closes to new rebate claims. Closures can happen at any point during the year depending on how quickly the budget is spent. When the program is closed, dealerships cannot process new rebate claims, though existing claims that were submitted before the closure date may still be processed.

The program reopens when the state budget includes new funding, which typically happens at the start of a new fiscal year in July, though timing varies. You can check the current status of CVRP on the CARB website, which displays whether the program is open or closed. If you are shopping for a vehicle and CVRP is closed, you can still purchase the vehicle, but you will not receive the rebate until the program reopens — and reopening is not may provide.

Income verification and documentation

When you explore for the rebate at the dealership, you will need to prove your household income. The dealer will ask for your most recent federal tax return (Form 1040) or a recent pay stub showing year-to-date earnings. Self-employed individuals may need to provide additional documentation such as a Schedule C from their tax return. The dealer verifies this information and submits it to CARB as part of the rebate claim.

Keep in mind that CVRP uses your adjusted gross income (AGI) from your tax return, not your gross salary. If you have deductions, capital losses, or other adjustments, your AGI may be lower than your total earnings. Bring the actual documents to the dealership — photocopies or digital images are typically acceptable, but the dealer will tell you what format they need.

Rebates for used vehicles and other limitations

CVRP covers only new vehicles, not used or pre-owned electric vehicles. If you are buying a used EV, you will not receive a CVRP rebate. Some California counties and cities run separate rebate programs for used EVs, so check with your local air quality management district or city government to see what may be available in your area.

You can receive only one CVRP rebate per household every two years. If you have already received a rebate within the past two years, you are not may be able to access for another one until that period expires. Additionally, the vehicle must be registered in California and primarily used in the state. Vehicles registered out of state or used primarily outside California do not may have access to.

Frequently Asked Questions

What happens if CVRP closes before I finish buying my vehicle?

If the program closes after you have started the purchase process but before the dealer submits the rebate claim, you will not receive the rebate. The closure date is when CARB stops accepting new claims, not when you sign the paperwork. Ask the dealer to confirm the claim will be submitted before any announced closure date.

Can I use CVRP if I lease instead of buy?

Yes, CVRP covers both purchases and leases of new zero-emission vehicles. The rebate is applied to your lease payment or capitalized cost, reducing your monthly payment or upfront costs. The income verification and may be able to access rules are the same for leases as for purchases.

Do I have to pay back the rebate if I sell the vehicle?

No, you do not have to repay the rebate if you sell the vehicle later. The rebate is a one-time discount applied at purchase or lease signing. If you sell the vehicle, the rebate stays with you — it does not transfer to the new owner or revert to the state.

What if my household income is above the limit?

If your household income exceeds the CVRP income limit, you are not may be able to access for a rebate through this program. However, you may be may be able to access for federal tax credits if you purchase a may have access to electric vehicle. Check the IRS website or speak with a tax professional about federal incentives that may explore to your situation.

How do I know if a specific dealership participates in CVRP?

The CARB CVRP website maintains a list of participating dealers by county. You can search by your location to find dealers near you that are enrolled in the program. Calling ahead to confirm a dealer participates before you visit is a good idea, since dealer enrollment can change.