California Electric Car Incentives: Everything You Need to Know

In addition to federal tax credits, California has also implemented several incentive programs to kick-start the popularity of EVs. These include rebates and tax credits from the state government, county and city programs, and utilities. These incentives typically have a finite budget and operating timeline, which means they change on a regular basis. For example, one of the biggest programs, the Clean Vehicle Rebate Project (CVRP), ran its course and stopped taking applications in November 2023.

To help you navigate through the available resources, we’ve compiled examples of these incentives as of summer 2024. There are several restrictions and conditions attached to each, with some only offered to lower-income households.

If you’re looking to make the switch to an EV, CARB will pay you up to $12,000 to retire an eligible internal-combustion vehicle and purchase a qualified EV. It’s limited to applicants who make less than three times the federal poverty level, which at the time of writing figures out to $45,180 in annual income for a one-person household. Those in disadvantaged communities are eligible for additional incentives. Attached to this program is a rebate of up to $2000 for the purchase and installation of a charger.

The BAAQMD offers a similar incentive that is also capped at $12,000, and no, you cannot apply for both, as many of these programs are funded from a common source. Depending on where you live, there may also be incentives available through similar entities.

New EVs are expensive, but that doesn’t mean you’re out of luck if you’re buying a used vehicle. The LADWP offers customers up to a $1500 rebate when purchasing an eligible vehicle. Those using Lifeline (senior or disabled exemption) or EZ Save Low Income Customer Assistance can receive up to $2500.

The savings don’t end there, as the Residential EV Charger Rebate Program offers rebates up to $1000 for purchase and installation of a qualified Level 2 charger and $250 for dedicated EV meter installation.

SoCal Edison has a similar program that offers up to $1000 for a used-EV purchase, or up to $4000 for low-income customers or those on assistance. SCE sweetens the deal with a time-of-use rate plan that can save you money on your electric bill if you charge at off-peak hours.

If you’re a business owner, you could be eligible for a point-of-sale voucher of between a whopping $20,000 and $240,000 when purchasing an electric truck or bus for your fleet.

If you live in Los Angeles or its surrounding three counties, the SCAQMD offers low-income residents between $250 and $500 for the purchase and installation of a Level 2 charger.

Many solar incentives in California have run their course and have been phased out, but it seems likely some may return.

The Self-Generation Incentive Program doesn’t cover solar panels, but it does offer a very enticing incentive for energy storage solutions (battery walls). Rebates up to $850 per kWh can cover up to 85 percent of the cost and installation.

In addition to the many incentives for purchasing an EV and charging equipment, owners also enjoy some notable perks while on the road.

A Clean Air Vehicle decal was once a coveted upgrade that allowed drivers to access high-occupancy vehicle lanes without meeting passenger requirements. It only costs $22 for eligible vehicles and applicants, which is a bargain when you consider how much time you’ll recover.

If you have a Clean Air Vehicle decal, you may also be able to enjoy discounts on toll bridges and highways that are managed by FasTrak.

Santa Monica makes access to chargers more affordable. Discounted parking permits are available for select city parking lots for drivers who regularly use those public chargers. This isn’t exclusive to Santa Monica, so check with your municipality to see if they offer something similar.

Restrictions vary widely between these programs, so be sure to check the requirements for each to see if you’re eligible. If you qualify, gather all the needed documentation and be sure to apply within stated deadlines. In many cases you’ll need:

• The registration and title of the purchased EV or the internal-combustion vehicle that will be retired
• A copy of the bill of sale
• Proof of income in the form of a tax return or possibly bank statements and pay stubs.
• Proof of residency (utility bill or vehicle registration with your name and address)
• Your account number if you’re applying for one of the utility-based incentives

As with almost everything on this list, the rebate limits depend on several factors and vary for each program. Many have income caps that are calculated by the number of people in a household. The motivation for these incentives is to make EVs more accessible to the average or lower-income shopper, so those making more than those caps are disqualified.

The payout of these rebates and incentives may also vary depending on income, with greater rewards going to those who make less. The price, vehicle model, and country of origin may also disqualify you from enjoying these perks.

The process can be daunting, so we suggest doing your homework and carefully reviewing the requirements. Keep in mind that some of these programs are examples of what might be available in your area. Your local utility company and regulatory agency may offer something similar and keep in mind, these can change rather quickly.

With a background in design and open-wheel racing, Mark Takahashi got his foot in the door as an art director on car and motorcycle magazines. He parlayed that into a career as an automotive journalist and has reviewed thousands of vehicles over the past few decades.