California is lowering its MSRP limit and income cap for EV subsidies, which offers $2,000 USD for EVs and $1,500 for plugin hybrids, according to Green Car Reports.
The state has lowered its max MSRP limit for eligible EVs to $45,000 from $60,000 for passenger cars. California’s MSRP limit on trucks and SUVs will remain at $60,000.
The change means that certain vehicles, like the Polestar 2, will become ineligible for the rebates. The Tesla Model Y and entry Model 3 still qualify for the rebate, but just barely for the former, as the CVRP does not take into account destination costs.
In addition, the rules, set to go into effect on February 24, lower the income cap for single tax filers from $150,000 to $135,000, expected to lower the number of buyers eligible for EV rebates.
Head-of-household filers now must make under $175,000, changed from the previous $204,000 cap.
Similarly, those filing jointly have an updated income cap of $200,000, from the previous $300,000 limit.
As it re-evaluates regulatory practices for EVs, California’s Department of Motor Vehicles (DMV) is also working on revisiting its regulations for Tesla’s Full Self-Driving (FSD) beta.
Last year, California’s EV rebate program ran out of money for its regular applicants — a good problem to have when utilizing laws to help increase EV adoption.
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“In addition, the rules, set to go into effect on February 24, lower the income cap for single tax filers from $150,000 to $135,000, expected to widen the number of buyers eligible for EV rebates.” When you lower income CAP you lessen the eligibility and this reduces overall adoption as the prospective consumers who were in the $135001-150000 income bracket are now not able to qualify for the rebate.