Photo: Tesla
Tesla recently decided to apply a decisive change to its EV lineup – it made everything cheaper by a considerable margin. However, the state of California has none of it. The automaker doesn’t get to be a part of the Clean Vehicle Rebate Project (CVRP). But that can change.
Buying a Tesla has become quite the proposition today. As we anticipated back in June of last year, the company decided to give Americans, Canadians, and Europeans a very good reason to finally pull the trigger on becoming EV owners – massive price cuts.
The updated cost of its all-electric cars in the U.S. now comes with discounts that span anywhere from $3,000 for the Model 3 Rear-Wheel Drive to $21,000 for Model S Plaid. A similar policy has been applied in Canada and over the pond as well. This decision was welcomed by many prospective buyers and might have alerted a couple of competitors. However, those who took delivery of a Tesla in November and December of last year weren’t as happy.
For Americans, this decisive action brought back the possibility of buying a five-seater Tesla Model Y without giving up on the updated federal EV tax credit (also known as the clean vehicle credit). The IRS doesn’t consider this model to be an SUV, so it put a price cap of $55,000 on the two-row Model Y, while the seven-seater qualifies for the upper MSRP limit of $80,000.
On top of the federal tax credit, certain states and institutions might offer various incentives for car buyers that choose the all-electric route. For example, California has the Clean Vehicle Rebate Project (CVRP) and the Clean Cars 4 All in place.
The CVRP is made possible by California’s Air Resources Board (CARB). The program offers rebates of up to $4,500 when buying or leasing battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and hydrogen-powered vehicles (FCEVs). It’s available to individuals, businesses, nonprofit organizations, and government entities that are based in the state or have an affiliate there.
As an individual, to obtain the maximum of $2,000 for a new BEV like the Tesla Model 3 Rear-Wheel Drive you would have to earn the following gross amounts:
There are also manufacturer suggested retail price limits for cars, as follows:
While the CVRP might suit many Californians, the Clean Cars 4 All is appealing only to those earning less than $83,500 a year per family of four. But the rules state that eligible participants must have an older internal combustion (ICE) vehicle to replace with an EV or PHEV, which is why the incentive can go up to $9,500.
While Tesla is currently part of the Clean Cars 4 All program, the company’s customers can’t take advantage of the more comprehensive CVRP. And the reason is almost comical – Tesla removed itself from the program and did not reapply before establishing the recent price discounts.
Right now, if Tesla wants its customers to benefit from the rebate, it’ll have to rejoin the program by asking CARB to verify and approve its comeback. That may or may not have happened. What is certain is that, at least for now, there are no rebates available for new Tesla owners from California.
In an e-mail sent to a prospective buyer, CARB said that only Tesla vehicles bought before March 17th, 2022, can qualify for the rebate.
“Tesla has been in contact with the California Air Resources Board (CARB) and made this decision to remove themselves from the Clean Vehicle Rebate Project (CVRP). CARB will not be adjusting its MSRP cap to allow Tesla vehicles to qualify for the program. No exceptions can be made to this requirement. All concerns regarding the MSRP increase should be directed to Tesla,” added the Board.
Finally, Tesla buyers must remember that current provisions regarding the EV tax credit apply until March. That’s when new rules are scheduled to enter into effect. The applicable federal discounts might shrink.
The updated cost of its all-electric cars in the U.S. now comes with discounts that span anywhere from $3,000 for the Model 3 Rear-Wheel Drive to $21,000 for Model S Plaid. A similar policy has been applied in Canada and over the pond as well. This decision was welcomed by many prospective buyers and might have alerted a couple of competitors. However, those who took delivery of a Tesla in November and December of last year weren’t as happy.
For Americans, this decisive action brought back the possibility of buying a five-seater Tesla Model Y without giving up on the updated federal EV tax credit (also known as the clean vehicle credit). The IRS doesn’t consider this model to be an SUV, so it put a price cap of $55,000 on the two-row Model Y, while the seven-seater qualifies for the upper MSRP limit of $80,000.
On top of the federal tax credit, certain states and institutions might offer various incentives for car buyers that choose the all-electric route. For example, California has the Clean Vehicle Rebate Project (CVRP) and the Clean Cars 4 All in place.
The CVRP is made possible by California’s Air Resources Board (CARB). The program offers rebates of up to $4,500 when buying or leasing battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and hydrogen-powered vehicles (FCEVs). It’s available to individuals, businesses, nonprofit organizations, and government entities that are based in the state or have an affiliate there.
As an individual, to obtain the maximum of $2,000 for a new BEV like the Tesla Model 3 Rear-Wheel Drive you would have to earn the following gross amounts:
- $135,000 as a single filer;
- $175,000 as the head of the household;
- $200,000 as joint filers.
There are also manufacturer suggested retail price limits for cars, as follows:
- $60,000 for minivans, pickups, and SUVs;
- $45,000 for other cars and light-duty vehicles.
While the CVRP might suit many Californians, the Clean Cars 4 All is appealing only to those earning less than $83,500 a year per family of four. But the rules state that eligible participants must have an older internal combustion (ICE) vehicle to replace with an EV or PHEV, which is why the incentive can go up to $9,500.
While Tesla is currently part of the Clean Cars 4 All program, the company’s customers can’t take advantage of the more comprehensive CVRP. And the reason is almost comical – Tesla removed itself from the program and did not reapply before establishing the recent price discounts.
Right now, if Tesla wants its customers to benefit from the rebate, it’ll have to rejoin the program by asking CARB to verify and approve its comeback. That may or may not have happened. What is certain is that, at least for now, there are no rebates available for new Tesla owners from California.
In an e-mail sent to a prospective buyer, CARB said that only Tesla vehicles bought before March 17th, 2022, can qualify for the rebate.
“Tesla has been in contact with the California Air Resources Board (CARB) and made this decision to remove themselves from the Clean Vehicle Rebate Project (CVRP). CARB will not be adjusting its MSRP cap to allow Tesla vehicles to qualify for the program. No exceptions can be made to this requirement. All concerns regarding the MSRP increase should be directed to Tesla,” added the Board.
Finally, Tesla buyers must remember that current provisions regarding the EV tax credit apply until March. That’s when new rules are scheduled to enter into effect. The applicable federal discounts might shrink.
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