The California Electric Car Rebate can be a confusing mess of numbers and possibly false promises. There are some general rules that make this big rebate easier to understand, if you’re hoping to purchase an electric car in 2016.
California Electric Car Rebate
It isn’t only the California Electric Car Rebate that you will want to cash in on, there is also the Federal tax credit. The California rebate can be as much as $2500 when you go green and buy or lease an electric car. The Federal tax rebate can be as much as $7500.
Some key points on that larger rebate with your Federal taxes:
- The Rebate is only applied to your taxes that are due. There are no refunds of taxes already paid. When you owe only $2,000 in taxes, but your car qualifies for $7500 – you get $2,000.
- If you are leasing then the tax rebate goes to the leasing company, not you. However, the leasing company will likely give you a credit for it. So, you might come out ahead if you don’t owe taxes for 2016.
- The original owner of the car is the only one qualified to receive the tax rebate. If your car was owned by the dealership as a test drive model or loaner, that rebate is over.
California Advantages
Buying an electric car might qualify for a rebate from the state of California that is up to $2,500, depending upon the vehicle. You might also qualify for the Federal Tax Rebate. As an additional bonus, you might qualify to drive your new electric car in the HOV lane in California.
If you want to take a stroll through the California Electric Car Rebate advantages of the various electric cars out there, see this Table of Electric Cars. You can click on the car you like and you’ll see a link that lists all the tax rebates and other advantages to that model.
