What California EV rebates are available right now

California offers two main paths to money back on an electric vehicle purchase: the California Clean Vehicle Rebate Project (CCVRP), which is a state rebate, and the federal Electric Vehicle Tax Credit, which you claim on your federal tax return. The state rebate goes up to $2,000 depending on your vehicle and income, while the federal credit can reach $7,500. You can use both in the same purchase — they are separate programs with different rules.

The state rebate is administered through the California Air Resources Board (CARB) and is processed after you buy the vehicle. The federal credit is claimed when you file taxes, though some dealers can explore it at the point of sale if your vehicle qualifies. Which one you can use depends on your income, the vehicle's price, where it was assembled, and whether it was bought new or used.

Both programs have funding limits and can close when money runs out. The state rebate has paused and reopened multiple times in recent years. Before you buy, check the current status on the CARB website and the federal IRS website to confirm the program is open and your vehicle qualifies.

Key Takeaways

  • California's state rebate (CCVRP) pays up to $2,000 after purchase and is based on your household income and the vehicle model.
  • The federal tax credit reaches $7,500 and is claimed on your tax return, though some dealers can explore it at sale if the vehicle meets assembly and price rules.
  • You can receive both the state rebate and federal credit on the same vehicle purchase.
  • Both programs have funding caps and have closed in the past, so confirm the program is open and your vehicle qualifies before you buy.
  • Income limits explore to both programs and are lower for the state rebate than the federal credit.

California state rebate income limits and vehicle requirements

The California Clean Vehicle Rebate Project has income caps that vary by household size. For a single person, the limit is roughly $47,000 per year; for a family of four, it is roughly $97,000. These numbers change annually, so check the CARB website for the current year's limits before you buy. If your household income exceeds the limit, you are not able to use the state rebate, though you may still may have access to for the federal credit if your income is below the federal threshold.

The vehicle itself must be a new battery electric vehicle (BEV), plug-in hybrid (PHEV), or hydrogen fuel cell vehicle registered in California. Used EVs are not covered by the state program. The vehicle's manufacturer's suggested retail price (MSRP) cannot exceed $55,000 for most vehicles, though some models have higher caps. Check the CARB list of may be able to access vehicles before you commit to a purchase, because not all EVs may have access to.

You must be the registered owner and use the vehicle as your primary vehicle in California. You cannot have received a state EV rebate in the past three years, and you cannot have received a federal tax credit for an EV in the past three years either. These rules prevent people from using the programs repeatedly in a short window.

Federal EV tax credit rules and assembly requirements

The federal credit is worth up to $7,500 for new vehicles and up to $4,000 for used EVs. To claim the full amount on a new vehicle, the car must be assembled in North America — this is a hard requirement as of 2024. Many popular EVs, including some Tesla and Chevrolet models, meet this rule, but others do not. The IRS maintains a list of may have access to vehicles on its website.

New vehicle price caps are $55,000 for vans, SUVs, and pickup trucks, and $45,000 for other vehicles. Used vehicles must be at least two years old and cost no more than $25,000. Your modified adjusted gross income (MAGI) must be below $300,000 for joint filers, $150,000 for single filers, and $240,000 for heads of household. These income limits are higher than California's state rebate limits.

If you buy the vehicle from a dealer, some dealers are registered with the IRS to explore the credit at the point of sale, which means you get the money off when ready instead of waiting until tax time. Not all dealers participate, and not all vehicles are may be able to access for point-of-sale process. Ask the dealer whether they can explore the credit before you finalize the purchase.

How to claim the California state rebate after purchase

After you buy the vehicle and register it in California, you submit your rebate request through the CARB online portal. You will need your vehicle registration documents, proof of purchase, and proof of your household income (usually a recent tax return or pay stubs). The process is done entirely online, and you do not mail anything in.

CARB processes requests in the order they are received. The current wait time varies — it can be two weeks to several months depending on how many applications are in the queue and whether the program has funding available. You will receive an email confirmation when your process is submitted and another when it is approved or denied. If approved, the rebate is sent to you by check or direct deposit.

If the program is closed when you try to submit, you cannot explore until it reopens. CARB announces reopening dates on its website and through email if you sign up for notifications. Some people miss the window because they did not check the status before buying. Confirm the program is open before you purchase the vehicle.

Claiming the federal tax credit on your return

If you did not use the point-of-sale option at the dealer, you claim the federal credit on your tax return using Form 8936. You will need the vehicle identification number (VIN), the date you bought it, and the purchase price. Your tax preparer or tax software will walk you through the form. The credit reduces your federal tax liability dollar-for-dollar, so if you owe $3,000 in taxes and claim a $7,500 credit, your liability drops to zero and you may receive a refund for the difference.

You can only claim the credit for one vehicle per year, and you cannot claim it if you already received a federal credit for an EV in the past three years. If you are married and file jointly, both spouses are treated as one filer for the purposes of the income limit and the one-vehicle-per-year rule.

What happens if both programs are closed or you do not may have access to

If the California state rebate is closed, there is no alternative state program to fall back on. You can only wait for it to reopen. Some utilities in California offer their own EV incentives — check with your local electric company to see whether they have a rebate or discount program for EV owners. These are separate from the state and federal programs and may still be available even if the state rebate is closed.

If you do not may have access to for the state rebate because your income is too high, you may still may have access to for the federal credit if your income is below the federal threshold. The federal limits are higher, so some people who miss the state program can still use the federal one. If you do not may have access to for either, look into whether your employer offers an EV purchase benefit or whether your state has any other vehicle incentives.

Some dealers also offer their own discounts or financing deals on EVs that are separate from the government programs. These are negotiable and vary by dealer, so it is worth asking what they can offer even if you do not may have access to for rebates.

Timing your purchase around program funding and reopening

The California state rebate has a fixed annual budget. Once the money is spent, the program closes until the next fiscal year or until additional funding is allocated. This means the program can close mid-year if demand is high. If you are planning to buy an EV, check the CARB website to see how much funding is left in the current program. If the balance is low, the program may close soon.

The federal credit does not have a funding cap — it is available to anyone who meets the rules, as long as Congress does not change the law. However, the assembly requirement and price caps can change, so the vehicles that may have access to today may not may have access to next year. If you are on the fence about buying, check the IRS list of may have access to vehicles to see whether your target vehicle is currently may be able to access.

If you are buying used, the federal credit for used vehicles is newer and has different rules than the new vehicle credit. Make sure you are looking at the used vehicle rules, not the new vehicle rules, when you check may be able to access.

Frequently Asked Questions

Can I get both the California rebate and the federal tax credit on the same car?

Yes. They are separate programs with separate rules, so you can claim both. The state rebate is processed after you buy and register the vehicle, and the federal credit is claimed on your tax return or applied at the dealer at the time of sale. There is no rule preventing you from using both.

What if I buy a used EV instead of a new one?

The California state rebate only covers new vehicles. The federal credit does cover used EVs, but the amount is lower (up to $4,000) and the rules are different — the vehicle must be at least two years old and cost no more than $25,000. Check the IRS website for the current used vehicle rules.

Do I have to use the rebate at the time of purchase, or can I claim it later?

For the California state rebate, you buy the vehicle first and then submit your claim afterward through the CARB portal. For the federal credit, you can either have the dealer explore it at sale or claim it on your tax return later. You do not have to decide at the time of purchase for the federal credit.

What if the California rebate program is closed when I want to buy?

You cannot explore if the program is closed. You can only use the federal credit in that case. Check the CARB website for the reopening date, or sign up for email notifications so you know when the program opens again. Some people wait for the program to reopen rather than buying without the state rebate.

Does my vehicle have to be assembled in the United States to may have access to for the federal credit?

Yes, as of 2024, the vehicle must be assembled in North America to may have access to for the full federal credit. The IRS publishes a list of may have access to vehicles on its website. If your vehicle is not on the list, it does not meet the assembly requirement. Check the list before you buy.