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The state of California wants to make zero-emission vehicles more enticing to average buyers who may not yet be able to afford such technology. As of July 1, average-income families will get a bigger tax rebate on the purchase of new fuel-cell, electric, or plug-in hybrid vehicles. The twist is that the rebate disappears completely for high-income buyers.
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As Damon Lavrinc reports at Jalopnik, the new incentive structure replaces California’s previous tax rebate of $2500 on every electric vehicle sold in the state. In its place, a sliding-scale system has been adopted that takes into account the type of vehicle and the buyer’s annual income. The largest rebates—$6500 for fuel-cell cars, $4000 for EVs, and $3000 for plug-ins—go to individuals or families with an income less than 300 percent of the federal poverty level (FPL). Those who make less than $250,000 individually, or families under $500,000 jointly, get $5000 for FCEVs, the standard $2500 for EVs, and $2500 for plug-ins. The very wealthy—those who make more than $250,000 individually or $500,000 jointly—get a $5000 tax rebate on fuel cells, but no rebates on electric or plug-in-hybrid cars.
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- What Replaces Gasoline? Hydrogen Fuel-Cells Ultimately May Be the Winner
- Toyota Mirai Fuel-Cell Car First Drive: Well, It Sure Ain’t Pretty
- Honda Axing Several Hybrids in Favor of New Standalone Plug-In-Hybrid Model
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The state’s incentive program seems to strongly favor fuel-cell vehicles—perhaps not surprising, given that many of the U.S. market’s fuel-cell vehicles are only on sale in California and a small handful of other states. The full document outlining the new rules is available here.
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A version of this story originally appeared on roadandtrack.com.
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