New rebates in the US Californian state address consumers with low incomes giving them more buying opportunity and eliminate rebates for the more financially endowed locals.
A massive $373 million in grants has been approved by the California Air Resources Board (CARB) to support alternative-fueled cars, which include programs meant to aid low-income residents to purchase electric and fuel-cell cars. High-income buyers, who in big part own Tesla’s Model S, will get a free pass from the California state rebate, while the low-income consumers will be greeted with larger rebates.
The CARB Funding Plan for 2015 and 2016 stated that for the people with an income that is less than 300% of the federal poverty level, the rebate amount will be of $4,000 for Battery Electric Vehicles and of $3,000 for Plug-In Hybrid Electric Vehicles, up from the previous $2,500 and $1,500. For those whose incomes range from 300% of the federal poverty level to $250,000, the rebate will be of $2,500 for BEVs and $1,500 for PHEVs. According to CARB, a resident with an income of $35,310 is at 300% of the federal level, and that increases to $60,270 for a family with three members.
CARB explained that the income eligibility limit is set in place in order to help the Zero Emission Vehicle market grow and meet the bigger goal of Bill’s Senate to deploy 1 million ZEVs by 2023 and 1.5 million by 2025. In order to meet these milestones, staff is looking to set income eligibility for the project so that it targets incentives towards those who are most likely to decide to purchase a ZEV due to the rebates. If you decide to get the upcoming Toyota Mirai, good news: according to CARB, everyone is eligible for rebates! If you have a low income, you’ll get $6,500 and if you’re a bigger earner, the rebate will be of $5,000.
By Gabriela Florea