Electric vehicles (EVs), contrary to popular belief, aren’t a new phenomenon. They have been with us for decades. Having an electric vehicle would save you the cost of buying gas and other incidental costs. You can charge it using a residential solar panel or on designated charging stations. If you are shopping for a new EV? Then, your purchase may be eligible for EV tax credits.
Who Can Apply For EV Tax Credit?
EV tax credits are available to individuals and businesses in California that buy or lease new EVs. To qualify for an EV tax credit, specific criteria must be met by both the buyer and manufacturer of the car being purchased or leased.
For starters, the Federal EV tax credit is up to $7500, with a maximum of 200,000 vehicles per manufacturer eligible for the credit in each model year. For individual buyers, the EV tax credit is realizable once you file your tax returns. This tax credit is a one-off, meaning unused amounts cannot roll over to the next fiscal year.
Leasing an EV
Note that when you lease an EV, the tax credit isn’t transferred to you. Instead, it’s the manufacturer who benefits. Further note that the EV Tax Credit is not a cash payment. It’s more like “money in lieu of”. Therefore, instead of getting an income or payroll deduction for electric car taxes owed, this money goes to you in the form of a tax credit.
What Are the Available EV Tax Credits in California?
As mentioned, the federal government offers a credit of up to $7500, depending on the size and model of EV purchased. In addition, California also offers the following incentives:
• The Clean Vehicle Rebate Project (CVRP)
• Public EV Charging Equipment Rebate Program (PEVCP)
• Home charging installation rebate program
• California Alternative Energy Vehicle (CA EV) Rebate
To qualify, you must provide a valid California driver’s license or identification card. You should also provide your current vehicle registration information. Importantly, you need to have taxable California income on your most recent federal tax return.
What Are the Eligible Vehicles?
EV Tax Credits are available for EV purchase and leases of all-electric vehicles, plug-in hybrid electric vehicles (PHEV), or fuel cell EV. EV Tax Credits are not available for EV purchase and leases of hybrid electric vehicles (HEV) or plug-in HEVs. Naturally, vehicles that are propelled by gas are also ineligible.
As mentioned, car manufacturers are limited to 200000 vehicles per model. When that threshold has been met, their vehicles don’t qualify for an EV tax credit. For example, after March 2021, some Chevrolet, Tesla, and Cadillac models are ineligible to receive the rebate.
Shifting to Solar
If you consider an EV to benefit from the tax credit, you should also consider getting a solar battery. As California has laid down a roadmap to halting the sale of gas-driven vehicles, it’s time to make the shift. Don’t hesitate to contact us to discuss how you can charge your vehicle using a solar panel or lower your residential energy cost using our solar panels.
