Owning an electric car is great. There is so much less mess, smell and cost involved in operating an electric car. A hybrid car is almost as good. And as a bonus, there are tax credits and rebates for these cars issued by the state of California and the Federal government.
Electric Vehicle Tax Credit
There are three types of electric vehicle tax credits or incentives for which you might qualify when you purchase a new electric car or hybrid. Ask your dealer about the current status of the Clean Vehicle Rebate, the Federal Tax Credit and the California HOV Lane Access.
Clean Vehicle Rebate
The Clean Vehicle Rebate is a program that is funded off and on. You will receive a rebate check within 90 days of purchasing a qualifying car and getting approval, but sometimes it takes longer. The check can be as much as $2500.
Federal Tax Credit
How much you’ll receive as a federal tax credit varies from person to person, but it can be as much as $7500. Instead of getting the credit from the feds as a tax credit, in some circumstances the dealer takes the credit and uses it as an incentive to get you to lease the car. Speak with the dealer and your accountant about this credit.
California HOV Lane Access
After your new car is registered and you have its shiny new license plates, it is time to apply for your decal for HOV Lane Access. Woohoo! The bonus round!
How Much You Can Save
One of the most popular cars in Silicon Valley is the Toyota Prius Prime. Incentives for this particular car are about $1500 for the Clean Vehicle Rebate and up to $4502 for the federal electric vehicle tax credit. And you get to drive in the HOV lane! See even more incentives for your zip code area.
