Changes Coming to CA Rebate



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Sunday November 16, 2019 Changes Coming to CA Rebate  One of the biggest criticisms of subsidies for electric cars has been that they tend to favor the rich.  California made a change to their rebate program in July 2015 to limit rebates to those making less than $250,000 a year.  With almost half of all EV sales in the US happening in California budgets are still stretched so further changes are going into affect on December 3.


From that date rebates will only be given to vehicles with an MSRP of $60,000 or less.  This will shut out a lot of the high end EVs like the Jaguar i-Pace, Audi e-Tron,  Karma Revero, Tesla Model S, and Tesla Model X.  It may also hit high end versions of the Tesla Model 3 and the upcoming Tesla Model Y and Truck.

In addition rebates for plug-in hybrids will only be given to those with an all electric range of at least 35 miles on the EPA Urban Dynamometer Driving Schedule (UDDS).  The UDDS is not as strict as the EPA range tests so some longer range PHEVs may qualify but many will be shut out.  The good news is that the more popular PHEV offerings, the Honda Clarity PHEV, Hyundai Ioniq PHEV, and Prius Prime will still be eligible. 


The price cap for electric vehicles apparently does not extend to Fuel Cell vehicles which continue to be eligible for the rebate.  Fuel Cell vehicles will be eligible for a $4,500 rebate.

There are also changes to the EV rebate amount.  The normal rebates have dropped by $500 so a BEV now gets $2,000, a PHEV get $1,000 and and electric motorcycles, including the Electra Maccanica Solo, get $750.  The changes also have increased incentives for low to moderate income families remain unchanged at $7,000 for Fuel cell vehicles, $4,500 for a BEV, $3,500 for a PHEV, and $750 for a zero emission motorcycles.


Finally, the total number of rebates that can be claimed by an individual or entity will be reduced from 2 to 1.  This will not be retroactive so if you have already received a single rebate prior to December 3, 2019 you will still be eligible for one more rebate.


These changes are targeted at helping lower income families to be able to move to electric vehicles and to help California extend rebates to more people.  It is also hoped that these rebates will stimulate companies to produce more affordable EVs and longer all electric range PHEVs in the future. 


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