The state of California is making changes to its electric vehicle rebate program as the Clean Vehicle Rebate Project, in effect since 2010, is set to expire this year due to a lack of funding. Now the state will focus its efforts on helping low-income car buyers. That decision came after officials noted a disparity in electric vehicle ownership in California, with higher-income families overwhelmingly benefiting from the rebate program over the past 13 years.
The new Clean Cars for All program aims to support those who cannot afford to switch to electric vehicles. It will be expanded nationwide in 2024. To qualify for the new electric car rebate, drivers must have an annual income of less than $43,000 as an individual or less than $90,000 as a family of four.
Under the current program, individuals earning up to $135,000 per year and co-applicants earning up to $200,000 per year are eligible for a credit of up to $7,500 toward the purchase of a car. However, the goal of the new program is not to eliminate options for one group of drivers in favor of another, but to help those who couldn’t afford a cleaner vehicle.
The cost of electric vehicles can be around $53,000. Starting in 2024, income-eligible Californians could receive up to $12,000 to replace their older gasoline-powered cars with a cleaner one. But some car dealers worry that ending the rebate for middle- to high-income drivers could deter people from buying electric vehicles. The Environmental Council, on the other hand, believes this will not be the case because electric vehicles are popular with this group of Californians.
