The information on this page is current as of April 26, 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 and sourcing of battery materials. Qualifications have been updated as of April 18, 2023 and will change in future years.
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.
- 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.
For cars purchased April 18, 2023 or latter, the vehicle must meet critical mineral or battery component requirements for up to $3,750 in tax credit, or both for the full $7,500 tax credit.
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
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
California Clean Vehicle Rebate
The state of California has a set of rebates for California residents.
- 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.
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
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.
- Level 2 EVSE: up to $500
- Panel upgrades: up to $2,000
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
Sonoma Clean Power Incentive for Nonprofits
Sonoma Clean Power is providing incentives to Nonprofit customers.
- New or used passenger vehicle: $15,000
- New or used vehicle with maximum payload over 1,500 lbs: $22,500
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.
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.
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
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.