Electric Car Incentives In California For 2024
INCLUDING Clean Cars 4 All, EV charging incentives and other California EV incentives
The Clean Vehicle Rebate Program in California offered a huge incentive to drive an EV – but it’s not the only one.
Effective November 8, 2023, CVRP was closed to new applications.
While the California rebate for electric cars is currently not accepting new applications, there are many other statewide and local incentives to driving EVs - including up to $12,000 from Clean Cars 4 All.
The federal EV tax credit was also expanded in 2024. Up to $7,500 could be available to help you afford an EV.
Many of these EV incentives are stackable. Use our nonprofit's guide below to learn about the rebate program and other electric car incentives in California.
Haven’t Switched to An EV Yet?
You can also use our nonprofit's checklist for finding other federal, state and local EV incentives and our free EV Cost Savings Calculator.
The California EV Rebate Overview
One of the biggest EV incentives in California was the Clean Vehicle Rebate Project. Since 2010, the Clean Vehicle Rebate Project helped get almost 600,000 clean vehicles on the road in California.
All funding for CVRP has been reserved. Applications submitted on or after September 6, 2023, were placed on a standby list and new applications were not accepted after November 8, 2023.
The standard rebate for most Californians for the purchase or lease of an electric vehicle was $2,000. And if your household income was less than or equal to 400 percent of the federal poverty level, the EV rebate increased up to $5,500 over the general rebate.
While the Clean Vehicle Rebate is no longer available, there are many other EV incentives in California. Read below for more info!
Looking to Save Money on an EV in 2024?
While the EV Rebate in California is not currently available, our nonprofit has collected some of the best resources on purchasing or leasing an EV and put them into an easy-to-use cheat sheet.
It's a must-read for people considering an EV in 2024.
Simply enter your email to access the free cheat sheet and receive monthly news and inspiration from our nonprofit.
EVs Are Affordable With Or Without Incentives
The incentives we cover below certainly help, but many EVs already cost less than equivalent gas cars over their lifetimes due to cheaper fuel and less maintenance. Per mile, electricity is already ⅓ to ½ the cost of gasoline.
And EV lease deals in California can be very affordable — many for $9 or $10/day.
You can charge EVs at home overnight and even find free EV charging stations near you.
Check out our guide to the least expensive electric cars.
And just think about how great it will be to never have to go to a gas station again.
So tell your family and friends in California – more people should be driving EVs!
Clean Air Vehicle Sticker In CA
A great statewide EV incentive still currently available is the Clean Air Vehicle sticker. This sticker lets you use HOV lanes regardless of the number of occupants in the vehicle. Your vehicle is also then eligible for reduced rates or exemptions from toll charges for HOT lanes.
The CAV decal program will end, and any remaining valid decals will expire on September 30, 2025. However, if you and your vehicle are eligible, you can still apply here and use it until then.
Clean Cars 4 All
While the CVRP increased rebate is not currently available, Clean Cars 4 All is a huge EV incentive available for income-qualifying Californians.
Clean Cars 4 All Overview
If you have an older vehicle to trade in, four California areas participate in different versions of a program called Clean Cars 4 All.
It is intended for income-eligible residents within and near disadvantaged communities of the San Joaquin Valley, South Coast, Bay Area, and Sacramento air districts.
In 2024, the program will be expanded statewide as the Driving Clean Assistance Program (DCAP).
These programs give funding to replace older polluting cars with clean electric vehicles.
In each of the four programs, the upward incentive limit ranges from $9,500 to $12,000
Clean Cars 4 All Tips
- You do need to apply within 18 months of planned purchase/lease of an eligible vehicle and before funds are exhausted.
- Check to see if your area has restrictions regarding eligible dealerships.
- Be sure to look up whether you live in a disadvantaged community. Even if you don't, you still might be able to qualify for an incentive, but this would mean you are eligible for the maximum incentive.
- If you live outside of the areas covered by Clean Cars 4 All, but are still hoping to electrify your ride, there are plans to expand this into a statewide program in 2024. There are other incentives in California. Learn more below.
- Updates are coming soon. San Diego is becoming the fifth area with a CC4A program. LA is increasing the highest amount to $12,000.
The Four Clean Cars 4 All Programs
Eligible participants of the Replace Your Ride program can obtain up to $9,500 to trade in their old, high-emission vehicles for newer models. Options include upgrading to a hybrid, electric vehicle, e-bike, or receiving an alternative transportation card.
This initiative is open to residents within the South Coast AQMD Jurisdiction who meet specific income and vehicle criteria.
Location: The South Coast area, including Los Angeles, Riverside, San Bernardino, and Orange counties
Maximum amount: $9,500
2. Clean Cars for All - Bay area
The amount of money you can obtain from this program depends on both your household income and the type of vehicle you select. On average, Clean Cars for All vehicles are priced at $36,000, with typical incentives around $8,300.
Usually, the average loan amount for financing a replacement vehicle is $21,200. If you opt for a Plug-in Hybrid (PHEV) or Battery Electric Vehicle (BEV), you could receive up to $2,000 for electric vehicle charging. For more details, visit the Charging Your EV page.
Maximum amount: $12,000
Location: The Bay area
3. Drive Clean in the San Joaquin
The Valley Air District's Replace program is open to individuals with a household income at or below 300% of the federal poverty level (FPL). The funding amounts available are based on the type of vehicle you plan to buy, your household income, and whether you reside in a Disadvantaged Community. Use the incentive calculator above to estimate your potential funding.
Maximum amount: $12,000
Location: San Joaquin Valley
4. Clean Cars 4 All - Sacramento area
Participants may receive up to $12,000 for purchasing a qualifying new or used vehicle or leasing an eligible new vehicle, depending on their income and mobility choices. Alternatively, they can choose to use this funding for electric bikes instead of vehicles.
Maximum amount: $12,000
Location: The Sacramento area
Cash For Clunkers 2024 In California
Clean Cars 4 All generally offers a much better incentive for EVs and is worth looking into further. However, a for-profit company runs a Cash for Clunkers program that can help replace your ride if you or your car are not eligible for Clean Cars 4 All.
Simply trade in an older, polluting vehicle for cash -- which you can then put towards a new ride!
New Legislation: EV Incentives for Gasoline-Burdened Families
In 2024, California Assembly member Phil Ting introduced AB 2401, a bill aimed at transitioning gasoline-burdened families to electric vehicles.
This legislation intends to lower fuel costs for those in greatest need while accelerating the reduction of auto pollution. It would provide additional incentives for lower income gasoline superusers.
The Driving Clean Assistance Program (DCAP)
Launching in 2024, the Driving Clean Assistance Program (DCAP) will offer up to $14,000 in incentives for income-eligible consumers to purchase or lease a clean vehicle. It will be available statewide in California.
Qualified participants can receive up to $12,000 when scrapping an older vehicle and residing in a disadvantaged area, or up to $7,500 without scrapping an older vehicle. Additionally, the program offers low-interest loans with an 8% cap, mobility solutions such as transit passes or e-bikes, and up to $2,000 to help with charging expenses.
This initiative is part of the California Air Resources Board (CARB) strategy to simplify its programs and broaden the reach of Clean Cars 4 All (CC4A) to regions currently lacking a CC4A program.
Before purchasing or leasing an electric vehicle, shoppers must first apply for the program. Stay up to date on the launch of DCAP here.
EV Home Charging Incentives In California
A number of utility companies offer incentives for installing home EV chargers. It's worth checking with yours if you qualify. Here is a list of participating electric companies and what they offer. You can also plug in your zip code here for a quick search for incentives.
As an example of an EV incentive, income-eligible PG&E customers, PG&E will provide up to $2,500 in financial incentives including a a free Level 2 charger valued at $500 and up to $2,000 in financial incentives to help cover the costs of electrical panel upgrades.
There is also an Electric Vehicle Federal Tax Credit that gives individuals 30% off home charging stations. It can additionally help with installation costs up to $1,000.
Buyers of EVs through the Clean Cars 4 All program are also eligible for home charger incentives or prepaid charge cards if home charger installation is not feasible.
You could additionally qualify for incentives if you are interested in solar panels.
There are also income-eligible household discounts of 18% to 20% on your household electric bill through the CARE and FERA programs that can help with vehicle charging. You can enroll here if you have not already.
How To Find California Local EV Incentives
Drive Clean CA.gov is a great place to search for EV incentives by zip code in California
You can also search by zip code on plugstar to cross-reference against your Drive Clean search.
Further EV incentives can include more rebates such as:
- Customers of Southern California Edison (SCE), the main electricity supply company for most of Southern California, can apply for up to a $4,000 rebate with the Pre-Owned Vehicle Rebate Program.
- Through the Peninsula Clean Energy DriveForward Electric Program, income-qualifying San Mateo County residents could be eligible for an incentive of up to $2,000 for purchasing a used electric vehicle.
- Discounted tolls, special loans, low-cost home charging rates and electric utilities incentives, etc.
Download the Ultimate EV Home Charging Cheat Sheet
We put together this free cheat sheet to help people learn about EV charging and how to purchase the right home charger. Simply enter your email to access the cheat sheet as well as sign up for other EV news and inspiration delivered straight to your inbox.
The EV Home Charging Cheat Sheet is brought to you completely free of charge by Coltura, an award-winning nonprofit.
Don’t Forget About The Federal Electric Vehicle Credit In 2024
You might also qualify for up to a $7,500 tax credit from the federal government for purchasing a new EV.
Beginning in 2024, eligible buyers of eligible electric vehicles or plug-in hybrids will receive the tax credit at the time of purchase as an “on the hood” discount. There's no longer a need to wait to take the credit at the time of tax filing. On top of this, in 2024 taxpayers who don’t owe enough tax to be offset by the credit will still be eligible for the full $7,500 credit.
There’s also a new federal tax credit for USED EVs priced up to $25,000. The discount is up to $4,000 or 30% of vehicle cost, whichever is lower.
Combined with the CA incentives, your savings could be huge.
Get more info on the Electric Vehicle Federal Tax Credit.
Why Are There EV Incentives In California?
There are several reasons why California offers incentives to replace fossil fuel cars with EVs.
California continues to have some of the worst air quality in the country. For 2019, 2020 and 2021, of the eleven US counties with the worst combined short-term particle pollution, ozone, and long-term particle pollution levels, ten were in California. One in three Californians live in areas with unhealthy air.
California cities claim the top four spots of U.S. cities with the most Particulate matter. And in terms of ozone pollution, Los Angeles is the most polluted city in the nation, just as it has been for 23 of the last 24 years. Much of this is caused by the ozone (smog) and particle pollution from vehicle emissions.
California is also committed to making the switch from gasoline to electric to meet its goal of reducing carbon emissions by 40% from 1990 levels by 2030, and reaching carbon neutrality by 2045.
On top of this, California is one of states that participate in the ZEV (Zero Emissions Vehicles) Program, which requires that automakers ensure that a certain percent of all vehicles they sell in the state are ZEVs (ZEVs are mostly electric vehicles, but can also be hydrogen fuel cell vehicles). Because of recent regulation, by 2026, all automakers must have at least 35% ZEV sales.
Learn more about the gas car phaseout in California.
So be sure to take advantage of incentives. By driving an EV instead of a gasoline-powered car, you’re doing a service for the environment and the health of other Californians.
California EV Tax Credits & Incentives Conclusion
By driving an EV, you’re keeping our air cleaner and our climate healthier. You’re benefiting other Californians. You deserve to take advantage of these incentives and feel great about driving your EV.
Do You Want Less Vehicle Pollution?
So do we.
Our nonprofit is laser-focused on reducing gasoline use as quickly as possible.
We invite you to consider supporting our efforts to move the country beyond gasoline.
Take the next step! Sign up to get electric vehicle news, inspiration and info about political action from Coltura, a nonprofit fighting to move beyond gasoline to cleaner alternatives like EVs.
