Although plug-in vehicles typically have a higher initial cost than a comparable gasoline-powered vehicle, the prices are coming down and lower operating costs can help reduce total cost of ownership.
Federal Tax Credits
Monterey Bay Air Resources District
Monterey Bay Clean Vehicle Rebate Program
Apply now: Rebates issued pending the availability of funds – first-come, first-served until funds are exhausted. Rebates to be issued starting on July 1, 2017, after approval of application:
- $2,000 for battery electric vehicles: $1,000 for plug-in hybrid electric vehicles; $500 for electric motorcycles — (purchased of leased)
- Dealer pre-certified used vehicles: $1,000 for battery electric vehicles and $500 for plug-in hybrid electric vehicles
For Plug-In Electric Vehicles
A tax credit from $2,500-$7,500 for electric vehicles and plug-in hybrid vehicles is available, depending on the size of the battery (4 kWh to 16 kWh) and applies to at least 200,000 units per vehicle manufacturer before it begins phasing out. For additional information visit the Alternative Fuels Data Center.
For 2- or 3-wheel Electric Vehicles
The 10% federal tax credit for 2 or 3 wheel electric vehicles (up to $2,500) expired at the end of 2013. Plug In America is working hard to renew this credit. For additional information visit the Alternative Fuels Data Center.
For EV Charging Stations
The EV infrastructure tax credit on an EV charging station is 30% up to $1,000 for consumers and 30% up to $30,000 for businesses, effective through 2016. For additional information visit the Alternative Fuels Data Center.
State of California Rebates
Clean Vehicle Rebate Project (CVRP) through the Center for Sustainable Energy California provides up to $2,500 for BEVs, and $1,500 for PHEVs, and $900 for electric motorcycles and NEVs. Various utilities throughout the state also offer discounted rates for residential vehicle charging during off-peak hours. Clean Air Vehicle Decals for carpool lane access available for BEVs and PHEVs.
Increased EV Rebate Levels for Low-and-Moderate Income Consumers
The Air Resources Board (ARB) approved the Fiscal Year 2015-16 Low Carbon Transportation Investments and AQIP Funding Plan in late June 2015, which included several changes to the Clean Vehicle Rebate Project (CVRP), specifically an income cap for higher-income consumers. In addition, rebate levels for low and moderate income consumers will be increased by $1,500 per rebate for consumers with household incomes less than or equal to 300% of the federal poverty level. For example, for a household of 2 people, the poverty level would be $48,060. Click here for details.
Special Note: Increased rebate amounts are available for fuel-cell electric vehicles, battery electric vehicles, and plug-in hybrid electric vehicles.
As of January 2017, PG&E customers with EVs are eligible to receive a $500 Clean Fuel Rebate for their use of electricity as a clean transportation fuel. Clean Fuel Rebate comes from a State of California program called the Low Carbon Fuel Standard (LCFS). The Low Carbon Fuel Standard is fighting climate change by encouraging the adoption of clean vehicle fuels such as electricity. PG&E earns credits in the program when customers use electricity at home to charge their electric vehicles. PG&E returns the value of these credits to its electric vehicle customers through the Clean Fuel Rebate.