One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
This archival content was originally written for and published on KPCC.org. Keep in mind that links and images may no longer work — and references may be outdated.
California to limit electric car rebate program to earners below $250k
FILE: Angie Vorhies plugs in the charging cord to her Nissan Leaf electric vehicle at a San Diego mall in November 2013.
(
Lenny Ignelzi/AP
)
Listen
0:59
California to limit electric car rebate program to earners below $250k
New rules go into effect Tuesday for California's electric and plug-in hybrid vehicle rebates, eliminating the cash given back to high earners and upping the amount for those who make less.
Those who make $250,000 or more or have a combined household income topping $500,000 will no longer qualify for discounts on the cars, while those with lower incomes will qualify for a larger rebate.
"The state of California is trying to increase the accessibility of these vehicles to all Californians," said Collin Santulli, a program manager with the Center for Sustainable Energy, which runs the rebate program for the state.
The program, which offers $2,500 for all-electric vehicles and $1,500 for plug-in hybrids, has been in effect since 2010 in an effort to incentivize more Californians to buy the cars, which produce no or low carbon emissions.
But data collected by the Center for Sustainable Energy show that less than a quarter of current rebates go to households earning less than six figures and many state legislators have criticized the program as a subsidy for the rich.
Under the new rules, individuals and households that earn 300 percent of the Federal Poverty Rate or less will qualify for a rebate of $4,000 on electric cars and $3,000 on plug-in hybrids.
The rebate for earners above that threshold but below the $250,000/$500,000 combined level will still qualify for the standard rebates of $2,500 and $1,500.
Sponsored message
Jessica Caldwell, an auto industry analyst for Edmunds, predicts the loss of a rebate will have little effect on the high-end market for electric vehicles, like Teslas.
"I don't think for vehicles like the Model S or the new Model X, because its such a status car right now, I don't think that's necessarily going to dissuade people from buying it," she said.
The shift in rebates could be a boon, she says, for more mass market cars like the Nissan Leaf or Chevy Volt, which cater to more price sensitive populations looking to save money on gas or obtain HOV lane stickers.
Even luxury brand Tesla could benefit. This Thursday the company will unveil its new Model 3 sedan, which it intends to sell for $35,000.
Top earners will continue to qualify for a $5,000 rebate on fuel cell cars, which run on hydrogen gas.
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
