Electric Vehicle Incentives

The information on this page is current as of January 5, 2023. Please review the relevant links for the latest information about incentive programs listed here.

IRS Tax Credit

2023 Brought new changes to the IRS EV tax credit program. No longer is there a 200,000 sales cap. Incentives will be based on production in North America. Qualifications have not been finalized, but for now, a number of vehicles do qualify.

Incentives exist for new cars, and used cars.

To receive the full tax credit, you need a tax liability of at least $7,500 (this means the taxes you owe/paid for the year in which you bought your car need to total $7,500). For example if your total taxes paid for 2023 is $5,000 and your tax return in 2024 indicates you still owe $1,000 for 2023, you would only get a refund of $5,000 for your EV for a total tax credit of $6,000. This is not tax advice, so speak with a tax professional to determine your possible tax credit.

There are income caps for the tax credit as well as caps on the total car cost.

Incentives

  • New vehicle: Up to $7,500
  • Used vehicle: 30% of price (up to $4,000)

New Car Eligibility

The vehicle must be assembled in North America with a minimum battery size of 7 kWh and weigh less than 14,000 lbs.

The maximum price for vehicles is as follows:

  • Cars and some SUVs: $55,000
  • Some SUVs, Trucks, and Vans: $80,000

Income max for the new car EV tax credit is determined by tax filing status as follows:

  • Single: $150,000
  • Head of household: $225,000
  • Joint: $300,000

See the full qualifying list for new cars

Used Car Eligibility

Income max for the used car EV tax credit is determined by tax filing status as follows:

  • Single: $75,000
  • Head of household: $112,500
  • Joint: $150,000

See the full qualifying list for used cars

California Clean Vehicle Rebate

The state of California has a set of rebates for California residents.

Incentives

  • Battery Electric Car/SUV/Truck/Van: $2,000 (plus $2,500 for lower income)
  • Plugin Hybrid Electric Car/SUV/Truck/Van: $1,000 (plus $2,500 for lower income)
  • Fuel Cell Electric Car/SUV/Truck/Van: $4,500 (plus $2,500 for lower income)

On February 28, 2023, the lower income additional rebate amounts for Battery Electric and Plug-In Hybrid Electric Vehicles will increase to $5,500 while Fuel Cell Electric Vehicles lower income additional rebate will increase to $3,000.

Eligibility

Income max for the EV rebate is determined by tax filing status as follows:

  • Single: $135,000
  • Head of household: $225,000
  • Joint: $300,000

Income max for the additional EV rebate is determined as follows:

  • Household of 1: $54,360
  • Each additional household member: Add $18,880

See the full qualifying list for new cars

PG&E Empower EV Incentive

This program will be launching in early 2023 and will offer incentives for purchasing and installing Electric Vehicle Supply Equipment (EVSE) for charging your electric vehicle at home.

Incentives

  • Level 2 EVSE: up to $500
  • Panel upgrades: up to $2,000

Eligibility

You must have purchased a car within 6 months of applying for the program. Panel upgrades must be for a single-family household and completed by licensed electricians

See program terms

Sonoma Clean Power Incentive for Nonprofits

Sonoma Clean Power is providing incentives to Nonprofit customers.

Incentives

  • New or used passenger vehicle: $15,000
  • New or used vehicle with maximum payload over 1,500 lbs: $22,500

Eligibility

Applicant must be a non-profit that is a customer of Sonoma Clean Power (SCP). Applicant must co-brand the vehicle with SCPs logo. Vehicles must be purchased or acquired for a 3-year lease. Vehicle must be a battery electric vehicle or plugin hybrid and have a minimum battery range of at least 25 miles.

Apply for the incentive or see program terms (pdf)

BAAQMD Clean Cars for All

In order to reduce air pollution in impacted neighborhoods, Bay Area Air Quality Management District has a program to replace your older car with a newer, cleaner vehicle or credits for public transportation. You must live in an eligible community served by the Bay Area Air Quality Management District which you can determine by checking for your zip code on their eligibility page.

Incentives

New or used Battery Electric, Plug-in Hybrid, and Fuel Cell vehicles come with a range of grants. You calso have the option to purchase an electric bicycle and accessories or receive public transit credit.

  • New or used EV: $5,500 - $9,500
  • Electric Bicycle(s): Up to $7,500
  • EVSE: Up to $600
  • EVSE install: Up to $2,000

Eligibility

You must live in an eligible zip code served by the Bay Area Air Quality Management District. You must trade in a qualifying old car to be dismantled (2005 model year or older). The replacement new or used car must have a model year within 8 years of the current calendar year. Maximum replacement vehicle sales price is $48,000. Household income must be within the required range.

See full requirements

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