More Cash Could Be on the Way for California Electric Car Buyers

Steph Willems
by Steph Willems

Just as one incentive prepares to fade away, another green vehicle bonus looms on the horizon. California is considering upping the amount of cash buyers of electric vehicles stand to gain from their state government at purchase time — boosting the subsidy from today’s $2,500 to $4,500.

The potential change comes after Tesla reached the 200,000 limit for the full federal EV tax credit in July, with General Motors and Nissan trailing not far behind.

The boosted incentive is just one issue California lawmakers and regulators plan to discuss in hearings this week, Bloomberg reports. Much of the discussion will surely concern the state’s continued ability to set its own clean vehicle and emission mandates — a situation the Trump administration would like to see changed.

Currently, the California Air Resources Board’s Clean Vehicle Rebate Project (CVRP) offers buyers of battery-electric vehicles a $2,500 incentive, which can be combined with the $7,500 federal tax credit. Buyers of hydrogen fuel cells see $5,000 under this state program, while plug-in hybrid owners gain $1,500. Since the program’s inception in 2010, California has handed out over $572 million in incentives. Roughly 75 percent of eligible buyers tapped into this MSRP-reducing fund during the first five years.

As the federal government hasn’t renewed the Obama-era federal tax credit program, Tesla buyers stand to see their federal incentive halved starting on New Year’s Day, then halved again on July 1, 2019, before disappearing at the end of the year. GM and Nissan, makers of the Chevrolet Bolt and Nissan Leaf, should come up against the 200,000-vehicle threshold within a year. Obviously, losing an incentive could lead to fewer people getting into PHEVs or EVs. California doesn’t want that.

Funding for the existing state incentive program comes from California’s cap-and-trade program, but the additional $2,000 per vehicle, if approved, wouldn’t. That cash would come from the Low Carbon Fuel Standard, also overseen by CARB. Under that program, simply put, petroleum-based fuel providers that can’t meet the state fuel carbon standard buy credits from cleaner companies to offset carbon emissions. New revenue is available from this source, Bloomberg reports.

Because it’s coming from a different source, the money might reach buyers at the point of sale, rather than after the purchase. It’s not a done deal yet, however. We’ll update you later this week on whatever California decides.

[Image: General Motors]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
6 of 63 comments
  • Redapple Redapple on Sep 26, 2018

    Minimize your footprint. Double GAS taxes. All cars on the road will drive less. 54 MPG Fed Standards will take a decade+ to make a small impact. BroDozers disappear. Yeah!

    • See 3 previous
    • MoparRocker74 MoparRocker74 on Sep 26, 2018

      This kind of fascist crap is why everyone hates greenies so much. Who are you to tell others what theyre supposed to drive, or that our buying habits should be 'modified'? Go live in some 4th world commie/socialist hellhole if that's what you want...there are PLENTY of those.

  • MoparRocker74 MoparRocker74 on Sep 26, 2018

    Nice work, idiots! Doubling down on trying to bribe people into driving horrible ugly weenie pods they don't want! FAIL!!!

  • Bd2 Eh, the Dollar has held up well against most other currencies and the IRA is actually investing in critical industries, unlike the $6 Trillion in pandemic relief/stimulus which was just a cash giveaway (also rife with fraud).What Matt doesn't mention is that the price of fuel (particularly diesel) is higher relative to the price of oil due to US oil producers exporting records amount of oil and refiners exporting records amount of fuel. US refiners switched more and more production to diesel fuel, which lowers the supply of gas here (inflating prices). But shouldn't that mean low prices for diesel?Nope, as refiners are just exporting the diesel overseas, including to Mexico.
  • Jor65756038 As owner of an Opel Ampera/Chevrolet Volt and a 1979 Chevy Malibu, I will certainly not buy trash like the Bolt or any SUV or crossover. If GM doesn´t offer a sedan, then I will buy german, sweedish, italian, asian, Tesla or whoever offers me a sedan. Not everybody like SUV´s or crossovers or is willing to buy one no matter what.
  • Bd2 While Hyundai has enough models that offer a hybrid variant, problem has been inadequate supply, so this should help address that.In particular, US production of PHEVs will make them eligible for the tax credit.
  • Zipper69 "At least Lincoln finally learned to do a better job of not appearing to have raided the Ford parts bin"But they differentiate by being bland and unadventurous and lacking a clear brand image.
  • Zipper69 "The worry is that vehicles could collect and share Americans' data with the Chinese government"Presumably, via your cellphone connection? Does the average Joe in the gig economy really have "data" that will change the balance of power?
Next