Understanding Federal & California EV Tax Credits
Ever since they were first released, electric vehicles have been a common sight across the Golden State. It's easy to see why: silent, sleek and sophisticated, today's electric cars offer buyers a quiet, cutting-edge driving experience that traditional combustion engines can't replicate. From the upcoming Acura ZDX to the entire range of Audi e-tron® EVs, there is no shortage of compelling cars and SUVs for sale in California that are powered by electrons rather than gasoline.
Yet as more and more shoppers visit our local car dealerships in Sacramento to make the switch to electric, we've found that there's still confusion surrounding local and federal electric vehicle tax credits. These EV incentives are offered by every level of government here in California, from city- and county-specific savings opportunities to generous federal policies.
To help you understand how these EV incentives can reduce your next tax bill, we've compiled the following information. Read on, then visit one of our showrooms for more information on buying a new electric car in Sacramento!
Local & State EV Tax Incentives
If you're just starting to research California EV tax incentives, the DriveClean resource board is a great place to start. Simply input your ZIP code and see what incentives are available in your area; you can also filter by a few other basic parameters to further narrow down results. Of course, you'll want to read the fine print to ensure you meet all eligibility requirements, something that The Niello Company EV sales team can help with.
Here in Sacramento, EV owners will find there are plenty of ways to save. There's free EV charging in Sacramento parking lots, for one thing. The local Sacramento Municipal Utility District, or SMUD, offers managed EV charging benefits, which provides qualifying drivers with an initial, one-time $150 incentive and quarterly reward payments of $20. You may also qualify for SMUD'slocal charging incentive that maxes out at $1,000.1
Statewide CA electric car incentives are even more diverse and enticing. Here are just some of the ways choosing an EV puts money back in your pocket:
| Incentive Program1 | Maximum Financial Benefit |
|---|---|
| Decal for High Occupancy Vehicle Lane Exemption | Free HOV Access |
| Clean Vehicle Assistance Program - Charging Grant for Income-Eligible Consumers | $2,000 |
| California Clean Vehicle Rebate Project | $4,500 |
| California Clean Vehicle Rebate Project - Increased Rebate for Income-Eligible Consumers | $5,500 |
Federal EV Tax Incentives
At the national level, federal EV tax credits offer substantial savings opportunities. Provided the new electric car for sale in Sacramento you're interested in meets certain government-established criteria regarding mineral and battery component requirements, you may qualify for up to $7,500 in tax credits. There's even a federal used EV tax credit now as well, which maxes out at $4,000 for qualifying pre-owned electric cars.1
