What California offers to EV buyers right now
California runs two main rebate programs for electric vehicle buyers: the California Electric Vehicle Rebate (CalEVR) and the Clean Vehicle Rebate Project (CVRP). CalEVR is the newer program, launched in 2023, and focuses on lower-income households. CVRP has been running longer and serves a broader income range. Both programs pay money back to you after you buy or lease a may have access to vehicle — they are not discounts at the dealership.
You also may be able to claim a federal tax credit of up to $7,500 when you file your taxes, though the amount depends on the vehicle model, where it was assembled, and your household income. The state and federal programs have different income limits and vehicle requirements, so you might may have access to for one, both, or neither depending on your situation.
Key Takeaways
- CalEVR pays $2,000 to $8,000 back to lower-income buyers after purchase, with income limits around $60,000 for individuals and $120,000 for families.
- CVRP serves buyers with higher incomes and pays between $1,500 and $7,500 depending on vehicle type and powertrain, though the program frequently runs out of money.
- The federal tax credit of up to $7,500 is claimed when you file your taxes and has separate income limits and vehicle requirements from California's programs.
- Both California programs require you to own or lease the vehicle for a set period after receiving the rebate, or you must repay the money.
- You submit rebate requests through the California Air Resources Board website after you have already purchased or leased the vehicle.
CalEVR: The income-based rebate program
The California Electric Vehicle Rebate (CalEVR) is designed for households making up to roughly $60,000 per year (individual) or $120,000 per year (family of four), though these amounts adjust yearly. The rebate amount ranges from $2,000 to $8,000 depending on the vehicle type — battery electric vehicles (BEVs) typically receive more than plug-in hybrids (PHEVs).
To use CalEVR, you must buy or lease a new vehicle that meets California's emissions standards. Used vehicles do not may have access to. You submit your request through the California Air Resources Board (CARB) website after you own the vehicle, not before. The program requires you to keep the vehicle for at least four years if you bought it, or through the end of the lease if you leased it — if you sell or return it early, you repay the rebate.
CalEVR has an annual funding cap, which means the program can close when money runs out. You can check the current status on the CARB website before you buy, but the program may reopen later in the year with new funding.
CVRP: The longer-running rebate for a wider income range
The Clean Vehicle Rebate Project (CVRP) has been operating since 2010 and serves buyers with household incomes up to around $250,000, though this also adjusts annually. The rebate ranges from $1,500 to $7,500 depending on whether you buy a battery electric vehicle, plug-in hybrid, or fuel cell vehicle.
Like CalEVR, CVRP requires a new vehicle purchase or lease and you submit the request after the transaction is complete through the CARB website. You must own or lease the vehicle for at least three years (or through lease end) to keep the rebate. CVRP also has annual funding limits and frequently closes when money is exhausted, sometimes reopening months later.
If your household income is too high for CalEVR but falls within CVRP's range, CVRP may be your only state option. However, you may still may have access to for the federal tax credit if the vehicle and your income meet federal requirements.
The federal tax credit and how it stacks with California rebates
The federal government offers a tax credit of up to $7,500 for new electric vehicles, claimed when you file your federal income tax return. The credit amount depends on three things: the vehicle model, where the vehicle was assembled, and your household income. Some vehicles may have access to for the full $7,500; others may have access to for less or not at all.
Income limits for the federal credit are higher than California's — roughly $300,000 for joint filers — but the credit phases out as income rises. You can claim the federal credit and a California rebate for the same vehicle; they do not cancel each other out. However, if you receive a California rebate, you must subtract that amount from your federal tax credit when you file, so the total benefit is capped by the federal limit.
The federal credit rules change frequently, and some vehicles that may have access to in one year may not in the next. The IRS website and fueleconomy.gov list which vehicles currently may have access to and at what amount.
How to request a California rebate
Both CalEVR and CVRP require you to submit your request through the California Air Resources Board website after you have already bought or leased the vehicle. You cannot explore before purchase. You will need your vehicle registration, proof of purchase or lease agreement, and proof of income (usually a recent tax return or pay stub).
The process takes several weeks to several months. CARB reviews your submission, verifies the vehicle qualifies, and checks your income against the program limits. If approved, they mail a check to your address or deposit funds directly to your bank account, depending on the program.
Before you buy, check the CARB website to see whether each program is currently open and accepting requests. If a program is closed, you can still buy the vehicle, but you will not be able to claim that rebate. Some programs reopen later in the year when new funding becomes available.
Income limits and vehicle requirements by program
| Program | Income Limit (Individual) | Income Limit (Family) | Vehicle Type | Rebate Amount |
|---|---|---|---|---|
| CalEVR | ~$60,000 | ~$120,000 | New BEV or PHEV | $2,000–$8,000 |
| CVRP | ~$250,000 | ~$250,000 | New BEV, PHEV, or fuel cell | $1,500–$7,500 |
| Federal Tax Credit | ~$300,000 | ~$300,000 | New BEV, PHEV, or fuel cell (model-dependent) | Up to $7,500 |
Income limits adjust each year, usually in January. Check the CARB website or IRS website for the current year's thresholds before you buy. Vehicle requirements also change — some models lose federal credit may be able to access if manufacturing or battery sourcing rules change.
What happens if you sell or return the vehicle early
If you received a California rebate and sell or return the vehicle before the required holding period (four years for CalEVR purchases, three years for CVRP, or lease end for either program), you must repay the full rebate amount. This is a legal obligation stated in the rebate agreement you sign.
If you lease and the lease ends on schedule, you do not owe anything back — the holding period is satisfied. If you buy and then lease the vehicle to someone else, the requirement still applies to you as the owner.
The federal tax credit does not have a repayment requirement if you sell the vehicle, but you cannot claim the credit again on a different vehicle in the same tax year.
Frequently Asked Questions
Can I get both CalEVR and CVRP for the same vehicle?
No. You can only receive one state rebate per vehicle. If both programs are open and you may have access to for both, you choose which one to explore for. CalEVR typically offers more money for lower-income households, so it is usually the better choice if you meet its income limit.
What if the program is closed when I want to buy?
You can still buy the vehicle, but you will not receive that rebate. You can check the CARB website to see if the program is expected to reopen later in the year. The federal tax credit may still be available even if California's programs are closed.
Do I have to buy from a specific dealership to get the rebate?
No. Both California programs and the federal credit work with any dealership that sells may have access to vehicles. The rebate is based on the vehicle and your income, not where you buy it.
Can I claim the federal tax credit if I receive a California rebate?
Yes, but you must subtract the California rebate amount from the federal credit when you file your taxes. For example, if you receive a $5,000 California rebate and may have access to for a $7,500 federal credit, your federal credit is reduced to $2,500.
How long does it take to receive the rebate after I explore?
Processing typically takes four to twelve weeks from the time CARB receives your complete process. Delays can occur if documents are missing or if the program receives a high volume of requests. You can check the status of your process on the CARB website.