What California's EV rebate covers and who can receive it

California offers a rebate program called the Clean Vehicle Rebate Project that pays money back to people who buy or lease new electric vehicles. The rebate comes from California state funds, not federal money, and the amount depends on the vehicle's price and your household income. The program prioritizes lower-income buyers — if your household income is below 300% of the federal poverty line, you may receive a larger rebate than higher-income buyers.

The rebate is not automatic. You must request it after you have already purchased or leased the vehicle, and you will need documents from the dealership and proof of your income. The state processes these requests and sends the rebate check to you directly, not to the dealership. Rebate amounts have varied as the program has received different levels of funding, so the exact dollar amount you receive depends on when you explore and what vehicle you bought.

Key Takeaways

  • California's Clean Vehicle Rebate Project pays money back to people who have already bought or leased a new electric vehicle, with larger rebates for lower-income households.
  • You must request the rebate yourself after purchase by submitting documents including your vehicle purchase agreement, proof of income, and proof of California residency.
  • The program is administered through the California Air Resources Board, and you can check the current status and rebate amounts on their official website.
  • Rebate funding runs out periodically, so the program may be closed to new requests even though it reopens later with new funding.

How to request the rebate after you buy or lease

Start by gathering the documents you will need. You must have your vehicle purchase agreement or lease agreement, proof that you are a California resident (a driver's license or utility bill works), and proof of your household income from the past two years (tax returns, W-2 forms, or pay stubs). You will also need the vehicle's identification number (VIN) and the date you took ownership or started the lease.

Go to the California Air Resources Board website and look for the Clean Vehicle Rebate Project page. The site will tell you whether the program is currently open to new requests. If it is open, you can submit your request online through their portal or by mail. Online submission is faster — you upload your documents and receive a confirmation number when ready. By mail, you print the process form, gather your documents, and send them to the address listed on the form.

After you submit, the state reviews your documents to confirm you own or lease a may have access to vehicle and that your income falls within the program's limits. This review typically takes four to eight weeks. You will receive a letter in the mail telling you whether you were approved and, if approved, when to expect your rebate check.

Which vehicles may have access to for the rebate

The vehicle must be a new electric vehicle — either battery electric (all-electric) or plug-in hybrid electric. Used vehicles do not may have access to. The vehicle must have been purchased or leased in California, and you must have taken ownership or started the lease within a certain time window (usually the current year or the previous year, though this can change). The vehicle's manufacturer's suggested retail price (MSRP) must be below a set limit, which varies by vehicle type and changes year to year.

Some vehicles are excluded even if they are electric. Luxury brands and very high-priced models often fall outside the program's scope. The California Air Resources Board publishes a list of may have access to vehicles on their website, organized by make and model. Before you buy, you can check this list to see whether the specific vehicle you are considering will may have access to for the rebate.

Income limits and rebate amounts

Your household income determines both whether you can receive a rebate and how much you receive. The program has two income tiers. Households earning below 300% of the federal poverty line receive a larger rebate. Households earning between 300% and 600% of the federal poverty line receive a smaller rebate. Households earning above 600% of the poverty line do not receive a rebate through this program.

The federal poverty line changes each year, so the income thresholds change too. For 2024, 300% of the poverty line for a family of four is approximately $90,000, though this varies by family size. The exact rebate dollar amount also varies depending on the vehicle type and the program's available funding. When you check the California Air Resources Board website, they display the current rebate amounts for different vehicle categories.

What to do if the program is closed

The Clean Vehicle Rebate Project periodically runs out of funding and closes to new requests. When this happens, the website will display a message saying the program is not currently open. This does not mean the program is gone — it means the state has exhausted the current year's budget and is waiting for new funding to be allocated.

If the program is closed, you have two options. You can wait for it to reopen, which typically happens when the state budget is approved and new funds are released (usually in the fall or early winter). You can also look into federal tax credits for electric vehicles, which are separate from California's rebate and may still be available to you. The federal credit is claimed on your tax return rather than requested through a state program.

Frequently Asked Questions

Can I get the rebate if I bought the vehicle before I knew about the program?

Yes. You can request the rebate as long as you purchased or leased the vehicle within the program's time window (usually within the current or previous calendar year). The rebate is not based on when you learned about it, only on when you bought the vehicle. Submit your request as soon as you have gathered your documents.

What if I lease instead of buy?

Leased vehicles may have access to for the rebate under the same rules as purchased vehicles. You will need your lease agreement instead of a purchase agreement, and the lease must be for a new vehicle. The rebate goes to you as the lessee, not to the leasing company.

Do I have to pay taxes on the rebate money?

The rebate is not considered taxable income by California or the federal government. You do not report it on your tax return, and you do not owe taxes on the amount you receive. Treat it as a refund of part of your purchase price.

Can I combine this rebate with the federal electric vehicle tax credit?

Yes. California's rebate and the federal tax credit are separate programs with different rules. You can receive both, though the federal credit is claimed on your tax return rather than requested through a state program. Check the federal requirements separately to see if your vehicle and income also may have access to for the federal credit.

What happens if I sell the vehicle before the rebate arrives?

You can still receive the rebate as long as you were the registered owner when you submitted the request. The rebate is based on your ownership at the time of purchase, not on whether you still own the vehicle when the check arrives. Selling the vehicle does not disqualify you.