California to Shake Up How Hybrid/Electric Rebates Are Doled Out

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Higher income green car buyers in California will soon be cut off from the states’ rebate program. Starting on March 29th single tax filers who earn $250,000 will not qualify for state rebates on plug-in hybrid electric vehicles and battery electric vehicles.

For head-of-household filers the income cap is $340,000 and for joint filers $500,000. The changes come after people have complained that the rebate program is a subsidy for the rich. Another part of the program changes is an additional $1,500 for low- and moderate-income residents.

Current rebates in the state are $1,500 for plug-in hybrids and $2,500 for battery electric vehicles. In order to qualify for the added $1,500 increase applicants must have household incomes less than or equal to 300% of the federal poverty level. So single filers who make a little under $35,640, or for a household of four $72,900.

The California Air Resources Board Chairwoman Mary Nicholas said that they believe the increase will help to make sure that those drivers in communities most impacted by air pollution can benefit from clean vehicles.

This new program goes into affect before the March 31st Tesla Model 3 event and any Model 3 reservations come available. So those who are single filers, and make $250,000 will not get a state rebate for the Tesla Model 3.

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