With the federal EV tax credit of $7,500 long gone, California is working up a program to fill the gap. The state's lawmakers and governor have agreed on a new budget that includes $135 million for a new EV incentive for car buyers. Bills are working their way through the legislature now. The discounts will be available as cash on the hood, meaning buyers and lessees won't have to apply for a tax credit later on.
They'll be reserved only for first-time EV buyers, "as confirmed by a buyer attestation," the bill outlining the program says. Similar to the latest version of the federal EV tax credit, there will be price caps. A qualifying new EV's manufacturer-suggested retail price can't exceed $50,000 in order for it to qualify. And a used EV can't sell for more than $25,000.
View Price on AmazonBut there's a wrinkle to those rules, and it's good news for anyone looking to save a bit on a vehicle from one of America's EV startups. Here's the full text of the relevant section: An incentive shall not be provided under the program for a new vehicle with a manufacturer’s suggested retail price exceeding fifty thousand dollars ($50,000), or for a used vehicle with a sales price exceeding twenty-five thousand dollars ($25,000). Notwithstanding paragraph (1), incentives under the program shall be provided to California-headquartered zero-emission vehicle companies regardless of the vehicle manufacturer’s suggested retail price or sales price.
So a used or new SUV or truck made by Rivian, which is based in Irvine, would qualify for the incentive, despite the fact that Rivian doesn't sell a new vehicle for less than $50,000. At launch, the R2 costs $57,990 for the Performance model with Launch package, though an entry-level version is on the way for $45,000. Lucid, headquartered in the San Francisco Bay Area, will also benefit from the carve out. Its Air sedan and Gravity SUV start from $70,900 and $79,900, respectively.
Source: insideevs.com
