What California offers for electric vehicle buyers right now
California's main rebate program for electric vehicles is the Clean Vehicle Rebate Project, which offers up to $7,500 for new battery electric vehicles and up to $4,500 for used ones. The program is administered by the California Air Resources Board (CARB) and pays money directly to your dealer at the time of purchase — you do not wait months for a check. Income limits explore: households earning more than $300,000 per year are not may be able to access, and the vehicle price cap is $55,000 for new cars and $25,000 for used ones.
California also has the Federal Tax Credit, which is separate from the state rebate. The federal credit is up to $7,500 for new vehicles and up to $4,000 for used ones, though it has its own income caps and vehicle price limits. You can stack both — getting the California rebate at purchase and then claiming the federal credit on your tax return the following year — but the combined benefit is capped by the vehicle's actual price.
Beyond these two main programs, California offers additional incentives through utility companies and regional air quality districts, though these vary by location and vehicle type. Some focus on commercial vehicles or specific makes, while others target low-income buyers with extra funding.
Key Takeaways
- The Clean Vehicle Rebate Project gives up to $7,500 at the dealer for new electric vehicles, with income limits and vehicle price caps you should check before shopping.
- Used electric vehicles may have access to for up to $4,500 through the state program, but the car must be at least two model years old and cost under $25,000.
- The federal tax credit is separate from California's rebate and can be stacked on top of it, though the total cannot exceed what you actually paid for the vehicle.
- Dealer participation in the state rebate program is required, so confirm your dealer is enrolled before you negotiate the purchase price.
- Utility company rebates and regional incentives exist in some areas but vary by location, so check with your local utility and air quality district.
How the Clean Vehicle Rebate Project works at purchase
When you buy a new electric vehicle from a dealer enrolled in the program, the rebate is applied as a point-of-sale discount. The dealer subtracts the rebate amount from your final price before you sign the paperwork. You do not fill out a separate form or wait for approval — the dealer handles the transaction with CARB's system in real time.
To receive the rebate, you must meet three conditions: your household income must fall below the limit (which varies by family size but caps out around $300,000 for a family of four), the vehicle must be new and priced under $55,000, and the dealer must be enrolled in the program. Check the CARB website or ask the dealer directly whether they participate. Not all dealerships are enrolled, and some may have stopped participating if they hit their allocation for the year.
The rebate amount depends on the vehicle's battery size and your income level. Higher-income households get a smaller rebate than lower-income ones for the same vehicle. The CARB website has a lookup tool where you can enter a specific vehicle model and your income to see the exact amount you would receive.
Used electric vehicle rebates and age requirements
Used electric vehicles are handled through a separate track. The vehicle must be at least two model years old (so in 2025, that means 2023 or older), priced under $25,000, and purchased from a dealer or private seller. Unlike the new vehicle program, used vehicle rebates are not applied at the point of sale — you purchase the car normally and then submit documentation to CARB afterward.
The rebate for used vehicles is up to $4,500, and income limits are lower than for new vehicles. A household earning over $150,000 per year is not may be able to access for the used vehicle rebate, regardless of family size. You will need the vehicle's title, a bill of sale, and proof of your income to submit a claim.
Processing time for used vehicle rebates is typically four to eight weeks after CARB receives your complete process. Because this is not an when ready discount like the new vehicle program, you pay the full purchase price upfront and wait for the rebate money to arrive by check or direct deposit.
Federal tax credit versus California state rebate
The federal tax credit is a separate incentive that reduces your federal income taxes the year after you buy the vehicle. It is worth up to $7,500 for new vehicles and up to $4,000 for used ones, but it has different rules than California's program. The federal credit requires the vehicle to be assembled in North America, limits the price to $55,000 for new vehicles and $25,000 for used ones, and has income caps that are higher than California's.
You can receive both the California rebate and the federal credit on the same vehicle, but the combined amount cannot exceed the vehicle's purchase price. For example, if you buy a $40,000 electric vehicle and receive a $5,000 California rebate, you can claim up to $35,000 in federal credits (though the actual federal amount may be less depending on the vehicle and your income). The California rebate reduces your tax basis for the federal credit calculation.
The federal credit is claimed on your tax return using Form 8936, not at the time of purchase. You will need to keep your purchase documents and vehicle registration to file the claim. If you owe less federal tax than the credit amount, you cannot carry the unused portion forward to future years — it straightforward expires.
Income limits and vehicle price caps by program
| Program | New Vehicle Price Cap | Used Vehicle Price Cap | Income Limit (Single) | Income Limit (Family of 4) |
|---|---|---|---|---|
| California Clean Vehicle Rebate (New) | $55,000 | N/A | $200,000 | $300,000 |
| California Clean Vehicle Rebate (Used) | N/A | $25,000 | $100,000 | $150,000 |
| Federal Tax Credit (New) | $55,000 | N/A | $300,000 | $600,000 |
| Federal Tax Credit (Used) | N/A | $25,000 | $300,000 | $600,000 |
Income is measured as your modified adjusted gross income (MAGI) from your most recent tax return. For the California program, you will need to provide a copy of your tax return or a verification letter from the IRS. The income limits are strict — if you are even one dollar over the threshold, you do not may have access to.
Vehicle price is the manufacturer's suggested retail price (MSRP) before any discounts or rebates. If a dealer offers you a discount that brings the vehicle below the price cap, you still may have access to. The price cap applies to the vehicle itself, not to add-ons like extended warranties or dealer packages.
Regional and utility company incentives
Beyond the state and federal programs, some California utilities and air quality districts offer their own rebates. Southern California Edison, Pacific Gas and Electric, and San Diego Gas and Electric all have programs that may provide additional money for electric vehicle purchases or charging equipment. These programs change frequently and have their own income limits and vehicle requirements.
The South Coast Air Quality Management District (SCAQMD) in the Los Angeles area offers rebates for low-income households that can stack on top of the state program. The Bay Area Air Quality Management District has similar programs. These regional incentives are often more generous for lower-income buyers and may cover vehicle types or price ranges that the state program does not.
To find what is available in your area, contact your local utility company directly or check the California Energy Commission's website for a list of active programs by region. Many of these programs have limited funding and close when money runs out, so timing matters.
Dealer enrollment and how to confirm participation
Not every dealership is enrolled in the Clean Vehicle Rebate Project. Enrollment is voluntary, and some dealers choose not to participate because of the administrative burden or because they have already hit their annual allocation. Before you visit a dealer or negotiate a price, confirm that they are enrolled in the program.
The CARB website has a dealer lookup tool where you can search by zip code or dealership name. You can also call the dealer directly and ask whether they participate in the Clean Vehicle Rebate Project. If they do, ask whether they still have allocation available — some dealers run out of rebate slots partway through the year and cannot offer the discount until the next allocation period.
If your preferred dealer is not enrolled, you have two options: buy from an enrolled dealer instead, or purchase the vehicle and then explore for the used vehicle rebate after two years. The used vehicle rebate is available to anyone who meets the income and price requirements, regardless of where the car was originally purchased.
Frequently Asked Questions
Can I get both the California rebate and the federal tax credit on the same car?
Yes. The California rebate is applied at purchase, and the federal credit is claimed on your tax return the following year. The combined amount cannot exceed what you paid for the vehicle, and the California rebate reduces the amount you can claim for federal taxes. For example, a $7,500 California rebate means you can claim up to $7,500 in federal credit (not the full $7,500 federal maximum) if the vehicle qualifies.
What happens if my dealer is not enrolled in the rebate program?
You can purchase the vehicle without the point-of-sale rebate and then explore for the used vehicle rebate after the car is at least two model years old. The used vehicle rebate has lower income limits and a lower price cap ($25,000 instead of $55,000), so check whether you would still may have access to before buying. Alternatively, you can shop at an enrolled dealer instead.
Do I have to be a California resident to get the rebate?
Yes. You must be a California resident and register the vehicle in California. The program verifies residency through your driver's license or state ID. If you move out of state after purchase, you keep the rebate money, but you cannot claim it if you were not a resident at the time of purchase.
What if I buy a used electric vehicle from a private seller instead of a dealer?
You can still claim the used vehicle rebate. You will need a bill of sale signed by both you and the seller, the vehicle's title, and proof of your income. Submit these documents to CARB along with the rebate process. Processing takes four to eight weeks, and the money is sent by check or direct deposit.
Can I explore for the rebate if I am over the income limit?
No. The income limits are firm, and CARB verifies income using your most recent tax return. If your household income exceeds the limit by any amount, you do not may have access to for the California rebate. You may still may have access to for the federal tax credit, which has higher income limits.