Does California Have EV Tax Credits?

Thinking about elevating your Sacramento or Modesto driving experience with an electric vehicle? The Lexus lineup offers a range of exceptional options, like the Lexus RZ EV or the Lexus RX PHEV. And thanks to both federal-level and California EV tax credits and discount programs, you may be able to own one of these world-class vehicles at a lower price point. Below, Lexus of Roseville answers in detail an all-important question—Does California have EV tax credits?—and shares some federal, Roseville, and Sacramento EV tax credits to be aware of.

California EV Tax Credits

So, does California have EV tax credits? Both state boards and utility companies provide a wide range of rebates and incentives. With that said, none are California EV tax credits in the strictest sense of the term; rather, they are discounts available to specific buyers for eligible EVs. Here are some popular Roseville and Sacramento EV tax credits:

• California Air Resources Board – With this Roseville EV tax credit, you can retire an eligible internal combustion vehicle, replace it with a qualified EV, and receive up to $12,000. Applicants are required to earn less than three times the federal poverty level.
• Clean Air Vehicle Decal – For just $22, the California DMV gives eligible vehicles and applicants a Clean Air Vehicle decal that allows the use of high-occupancy vehicle lanes on El Dorado Hills roads and beyond—and without having to meet minimuim passenger requirements.
• Hybrid and Zero-Emission Truck and Bus Voucher Incentive – Through this program, business owners adding eligible electric trucks or buses to their fleets might qualify for a point-of-sale voucher worth anywhere between $20,000 and $240,000.

Federal EV Tax Credits

We’ve answered the question: Does California have EV tax credits? And you’ve seen just a sampling of the Sacramento and Roseville EV tax credits available. Now, let’s take a look at the tax credits you may have access to at the federal level.

For new EVs, you can get a tax credit of up to $7,500 if your new electric vehicle:

• Has been made by a qualified manufacturer
• Has an MSRP of no more than $80,000 for vans, SUVs, and pickups and no more than $55,000 for all other vehicles
• Has a battery capacity of at least seven kilowatt hours
• Has a gross vehicle weight rating of less than 14,000 pounds
• Has successfully met critical mineral and battery component requirements
• Has undergone final assembly in North America

New EV buyers must not earn more than these income limits to qualify:

• $300,000 for married couples filing jointly or a surviving spouse
• $225,000 for heads of households
• $150,000 for all other filers

If you’re in the market for a used EV, you may be eligible to claim up to $4,000 in tax credits, as long as:

• The vehicle is purchased from a dealer
• The vehicle costs no more than $25,000
• The vehicle is within two model years of the current calendar year

Used EV buyers must not surpass these income limits:

• $150,000 for married filing jointly or a surviving spouse
• $112,500 for heads of households
• $75,000 for all other filers

Find Out About Sacramento EV Tax Credits at Lexus of Roseville

Ready to learn more about Sacramento and Roseville EV tax credits and discount programs? Contact us today. If you’ve already found your next EV in our lineup, apply for financing and value your trade-in now to save time at the dealership later. A world of efficient, high-quality performance and next-level luxury awaits in a Lexus EV!