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"content": "\u003cp>California is halting its landmark \u003ca href=\"https://www.kqed.org/news/12036516/california-ebike-incentive-project-voucher-lottery-when-do-applications-open-2025-april\">electric bike voucher program\u003c/a> with no announcement and millions of dollars still in the bank, and transit advocates are frustrated that the money appears to be going to a program geared toward electric cars instead.\u003c/p>\n\u003cp>The Electric Bicycle Incentive Program offered up to $2,000 to lower-income Californians to purchase e-bikes beginning last year. In a statement, the California Air Resources Board said only that it has redirected the funds toward another program “due to state budget constraints.”\u003c/p>\n\u003cp>“This is a recent outcome of legislative direction, and we have just started informing program partners,” CARB spokesperson Joe DeAnda said in an email, adding that it’s possible funding could be allocated for the program in future years.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But Kendra Ramsey, the executive director of the California Bicycle Coalition (CalBike), said she was told in mid-October that CARB would shift the program’s remaining funds to Clean Cars 4 All, a similar incentive program for electric vehicles.\u003c/p>\n\u003cp>While she said she felt the conversation was meant to be private, she expected it would be followed by a more formal announcement from the agency.\u003c/p>\n\u003cp>“That direct communication from CARB never came,” Ramsey told KQED.\u003c/p>\n\u003cfigure id=\"attachment_12051115\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051115\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A young person rides an e-bike through Mill Valley on July 24, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>According to Ramsey, about $17 million — more than half of the $30 million that’s been allocated to the e-bike program since its inception in 2022 — is set to go to the program for electric vehicles.\u003c/p>\n\u003cp>She said she was told that the funds were reallocated based on direction from Gov. Gavin Newsom’s office to use any available CARB funding to continue supporting electric vehicle purchases as the federal government does away with its own incentives.\u003c/p>\n\u003cp>The Trump administration’s controversial “Big Beautiful Bill,” passed in July, ended federal tax credits of up to $7,500 toward electric vehicle purchases.[aside postID=news_12051245 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-MOPEDDEATH-16-KQED.jpg']“I think that’s really unfortunate that we’re responding to the current federal situation by limiting Californians’ ability to get really the cheapest and most economical, sustainable transportation option, instead of sort of doubling down and saying, ‘We have this really low-cost option that opens trips up for more people, and then we also have this other option for people who need cars,’” Ramsey said.\u003c/p>\n\u003cp>CARB’s e-bike program, created by a bill passed in 2022, faced difficulties getting off the ground. It wasn’t until 2024 that the agency began issuing $1,750 vouchers for a \u003ca href=\"https://www.ebikeincentives.org/wp-content/uploads/2025/08/Eligible-Ebike-List-8.19.25.pdf\">range of approved bikes\u003c/a> to people whose annual household income fell under 300% of the federal poverty line. An additional $250 was available to applicants who met further income criteria.\u003c/p>\n\u003cp>The program was designed to expand access to an affordable transportation model, especially for non-drivers and people with limited mobility.\u003c/p>\n\u003cp>While it was heralded initially as an ambitious and significant step toward clean transportation, it also invited widespread criticism after a slow rollout, multiple pushed-back application timelines and two state investigations into \u003ca href=\"https://www.sandiegouniontribune.com/2024/06/16/after-collecting-millions-in-public-money-san-diego-e-bike-charity-now-facing-multiple-investigations/\">Pedal Ahead\u003c/a>, the nonprofit chosen to administer the vouchers.\u003c/p>\n\u003cfigure id=\"attachment_12052959\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12052959\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A child rides an electric moped along the Mill Valley Bike Path in Mill Valley on Aug. 5, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Applicants also expressed frustration over technical issues with the application process once it got underway.\u003c/p>\n\u003cp>While the state’s electric vehicle incentive program has a rolling application process, the e-bike voucher program, by contrast, requires people to log onto \u003ca href=\"https://www.ebikeincentives.org/apply/\">the website\u003c/a> at a prescribed time, click the application portal at just the right moment and enter their information under a time crunch.\u003c/p>\n\u003cp>“I found it a little bit surprising that the same entity would have two similar voucher programs run completely different ways … when they had an existing program that was already working, that was distributing a large amount of money as well,” Ramsey said.[aside postID=news_12056576 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/EV-Carpool_GettyImages-2234597020.jpg']More than 100,000 people flooded the application site during the first drop of 1,000 vouchers last December. A second drop in May yielded a similar interest level.\u003c/p>\n\u003cp>“There were a lot of challenges. I don’t think anyone will tell you different,” Ramsey said.\u003c/p>\n\u003cp>Still, she said, at least some of the technology and availability frustrations the program spurred were also a sign of its value.\u003c/p>\n\u003cp>“The program was successful in showing that if you give people the opportunity to get an e-bike in an affordable manner, that they will take that opportunity and they will use e-bikes,” Ramsey told KQED.\u003c/p>\n\u003cp>Future drops were expected incrementally as long as funding was available. DeAnda said a third application round had been planned for next year before funds were redirected.\u003c/p>\n\u003cp>Ramsey estimated that money could have funded around 4,000 more vouchers.\u003c/p>\n\u003cp>“Such a popular program shouldn’t be ended,” said Christopher White, the executive director of the San Francisco Bicycle Coalition. “It should be operated well and fully funded because it promises to transform the mobility habits of tens of thousands of Californians to be more sustainable, far safer, [and it’s] far less expensive for the individuals to operate their new vehicles.\u003c/p>\n\u003cp>Like many transit advocate groups, he said he only found out about the shift in program funds from CalBike.\u003c/p>\n\u003cp>“It definitely gives the sense that CARB knows that this is the wrong direction to be moving in, to keep it so quiet,” he said.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California is halting its landmark \u003ca href=\"https://www.kqed.org/news/12036516/california-ebike-incentive-project-voucher-lottery-when-do-applications-open-2025-april\">electric bike voucher program\u003c/a> with no announcement and millions of dollars still in the bank, and transit advocates are frustrated that the money appears to be going to a program geared toward electric cars instead.\u003c/p>\n\u003cp>The Electric Bicycle Incentive Program offered up to $2,000 to lower-income Californians to purchase e-bikes beginning last year. In a statement, the California Air Resources Board said only that it has redirected the funds toward another program “due to state budget constraints.”\u003c/p>\n\u003cp>“This is a recent outcome of legislative direction, and we have just started informing program partners,” CARB spokesperson Joe DeAnda said in an email, adding that it’s possible funding could be allocated for the program in future years.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But Kendra Ramsey, the executive director of the California Bicycle Coalition (CalBike), said she was told in mid-October that CARB would shift the program’s remaining funds to Clean Cars 4 All, a similar incentive program for electric vehicles.\u003c/p>\n\u003cp>While she said she felt the conversation was meant to be private, she expected it would be followed by a more formal announcement from the agency.\u003c/p>\n\u003cp>“That direct communication from CARB never came,” Ramsey told KQED.\u003c/p>\n\u003cfigure id=\"attachment_12051115\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051115\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250724-MARIN-EBIKES-MD-01-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A young person rides an e-bike through Mill Valley on July 24, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>According to Ramsey, about $17 million — more than half of the $30 million that’s been allocated to the e-bike program since its inception in 2022 — is set to go to the program for electric vehicles.\u003c/p>\n\u003cp>She said she was told that the funds were reallocated based on direction from Gov. Gavin Newsom’s office to use any available CARB funding to continue supporting electric vehicle purchases as the federal government does away with its own incentives.\u003c/p>\n\u003cp>The Trump administration’s controversial “Big Beautiful Bill,” passed in July, ended federal tax credits of up to $7,500 toward electric vehicle purchases.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“I think that’s really unfortunate that we’re responding to the current federal situation by limiting Californians’ ability to get really the cheapest and most economical, sustainable transportation option, instead of sort of doubling down and saying, ‘We have this really low-cost option that opens trips up for more people, and then we also have this other option for people who need cars,’” Ramsey said.\u003c/p>\n\u003cp>CARB’s e-bike program, created by a bill passed in 2022, faced difficulties getting off the ground. It wasn’t until 2024 that the agency began issuing $1,750 vouchers for a \u003ca href=\"https://www.ebikeincentives.org/wp-content/uploads/2025/08/Eligible-Ebike-List-8.19.25.pdf\">range of approved bikes\u003c/a> to people whose annual household income fell under 300% of the federal poverty line. An additional $250 was available to applicants who met further income criteria.\u003c/p>\n\u003cp>The program was designed to expand access to an affordable transportation model, especially for non-drivers and people with limited mobility.\u003c/p>\n\u003cp>While it was heralded initially as an ambitious and significant step toward clean transportation, it also invited widespread criticism after a slow rollout, multiple pushed-back application timelines and two state investigations into \u003ca href=\"https://www.sandiegouniontribune.com/2024/06/16/after-collecting-millions-in-public-money-san-diego-e-bike-charity-now-facing-multiple-investigations/\">Pedal Ahead\u003c/a>, the nonprofit chosen to administer the vouchers.\u003c/p>\n\u003cfigure id=\"attachment_12052959\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12052959\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250805-MarinEBikes-05_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A child rides an electric moped along the Mill Valley Bike Path in Mill Valley on Aug. 5, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Applicants also expressed frustration over technical issues with the application process once it got underway.\u003c/p>\n\u003cp>While the state’s electric vehicle incentive program has a rolling application process, the e-bike voucher program, by contrast, requires people to log onto \u003ca href=\"https://www.ebikeincentives.org/apply/\">the website\u003c/a> at a prescribed time, click the application portal at just the right moment and enter their information under a time crunch.\u003c/p>\n\u003cp>“I found it a little bit surprising that the same entity would have two similar voucher programs run completely different ways … when they had an existing program that was already working, that was distributing a large amount of money as well,” Ramsey said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>More than 100,000 people flooded the application site during the first drop of 1,000 vouchers last December. A second drop in May yielded a similar interest level.\u003c/p>\n\u003cp>“There were a lot of challenges. I don’t think anyone will tell you different,” Ramsey said.\u003c/p>\n\u003cp>Still, she said, at least some of the technology and availability frustrations the program spurred were also a sign of its value.\u003c/p>\n\u003cp>“The program was successful in showing that if you give people the opportunity to get an e-bike in an affordable manner, that they will take that opportunity and they will use e-bikes,” Ramsey told KQED.\u003c/p>\n\u003cp>Future drops were expected incrementally as long as funding was available. DeAnda said a third application round had been planned for next year before funds were redirected.\u003c/p>\n\u003cp>Ramsey estimated that money could have funded around 4,000 more vouchers.\u003c/p>\n\u003cp>“Such a popular program shouldn’t be ended,” said Christopher White, the executive director of the San Francisco Bicycle Coalition. “It should be operated well and fully funded because it promises to transform the mobility habits of tens of thousands of Californians to be more sustainable, far safer, [and it’s] far less expensive for the individuals to operate their new vehicles.\u003c/p>\n\u003cp>Like many transit advocate groups, he said he only found out about the shift in program funds from CalBike.\u003c/p>\n\u003cp>“It definitely gives the sense that CARB knows that this is the wrong direction to be moving in, to keep it so quiet,” he said.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Under Governor Gavin Newsom, California has taken on an environmental policy \u003ca href=\"https://www.kqed.org/news/11923646/california-sets-historic-policy-on-zero-emission-vehicles\">that aims to reduce its carbon footprint\u003c/a>, and that relies heavily on zero-emission vehicles (ZEVs).\u003c/p>\n\u003cp>California already has\u003ca href=\"https://www.energy.ca.gov/news/2024-05/zero-emission-vehicle-sales-remain-strong-california\"> nearly 2 million electric vehicles\u003c/a> cruising its roadways, and the state has drawn out plans \u003ca href=\"https://ww2.arb.ca.gov/our-work/programs/truckstop-resources/zev-truckstop/zev-101/californias-plan-zero-emission-vehicles#:~:text=CARB%20also%20recently%20passed%20a,emission%20trucks%20beginning%20in%202024.\">for commercial truckers to switch their heavy duty vehicles to ZEVs,\u003c/a> in an effort to further cut pollution.\u003c/p>\n\u003cp>But California’s pathway to going green may face its biggest obstacle in the coming Trump Administration. The President-Elect has \u003ca href=\"https://www.reuters.com/business/autos-transportation/trumps-transition-team-aims-kill-biden-ev-tax-credit-2024-11-14/\">vowed to cut federal tax breaks for ZEV purchases\u003c/a>, and \u003ca href=\"https://stateline.org/2024/12/02/blue-states-prepare-for-battle-over-trumps-environmental-rollbacks/\">de-regulate federal environmental policies. \u003c/a>\u003c/p>\n\u003cp>While Governor Newsom says he plans to \u003ca href=\"https://www.kqed.org/news/12015764/newsom-vows-bring-back-california-ev-rebates-trump-cuts-federal-credit\">bring back state-level incentives for ZEV purchases\u003c/a> if those tax breaks are revoked, California is preparing for a fight with the new Trump Administration over its environmental future.\u003c/p>\n\u003cp>\u003cstrong>California University Students Make Presence Felt at NASA Challenge \u003c/strong>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Students from the Golden State make up half of the 12 teams heading to Houston this week to participate in the NASA Challenge competition, \u003ca href=\"https://stemgateway.nasa.gov/s/course-offering/a0BSJ000000BQC5/mittic-space2pitch-fall-2024\">Space2Pitch.\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://www.kazu.org/kazu-news/2024-12-02/two-teams-of-cal-state-monterey-bay-students-are-headed-to-a-national-nasa-competition-in-houston\">Cal State Monterey, UC Davis and San Diego State each sent two-person teams\u003c/a> to take part in the business incubator competition, where students from Minority Serving Institutions pitch innovative uses for NASA’s intellectual property.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Under Governor Gavin Newsom, California has taken on an environmental policy \u003ca href=\"https://www.kqed.org/news/11923646/california-sets-historic-policy-on-zero-emission-vehicles\">that aims to reduce its carbon footprint\u003c/a>, and that relies heavily on zero-emission vehicles (ZEVs).\u003c/p>\n\u003cp>California already has\u003ca href=\"https://www.energy.ca.gov/news/2024-05/zero-emission-vehicle-sales-remain-strong-california\"> nearly 2 million electric vehicles\u003c/a> cruising its roadways, and the state has drawn out plans \u003ca href=\"https://ww2.arb.ca.gov/our-work/programs/truckstop-resources/zev-truckstop/zev-101/californias-plan-zero-emission-vehicles#:~:text=CARB%20also%20recently%20passed%20a,emission%20trucks%20beginning%20in%202024.\">for commercial truckers to switch their heavy duty vehicles to ZEVs,\u003c/a> in an effort to further cut pollution.\u003c/p>\n\u003cp>But California’s pathway to going green may face its biggest obstacle in the coming Trump Administration. The President-Elect has \u003ca href=\"https://www.reuters.com/business/autos-transportation/trumps-transition-team-aims-kill-biden-ev-tax-credit-2024-11-14/\">vowed to cut federal tax breaks for ZEV purchases\u003c/a>, and \u003ca href=\"https://stateline.org/2024/12/02/blue-states-prepare-for-battle-over-trumps-environmental-rollbacks/\">de-regulate federal environmental policies. \u003c/a>\u003c/p>\n\u003cp>While Governor Newsom says he plans to \u003ca href=\"https://www.kqed.org/news/12015764/newsom-vows-bring-back-california-ev-rebates-trump-cuts-federal-credit\">bring back state-level incentives for ZEV purchases\u003c/a> if those tax breaks are revoked, California is preparing for a fight with the new Trump Administration over its environmental future.\u003c/p>\n\u003cp>\u003cstrong>California University Students Make Presence Felt at NASA Challenge \u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Students from the Golden State make up half of the 12 teams heading to Houston this week to participate in the NASA Challenge competition, \u003ca href=\"https://stemgateway.nasa.gov/s/course-offering/a0BSJ000000BQC5/mittic-space2pitch-fall-2024\">Space2Pitch.\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ca href=\"https://www.kazu.org/kazu-news/2024-12-02/two-teams-of-cal-state-monterey-bay-students-are-headed-to-a-national-nasa-competition-in-houston\">Cal State Monterey, UC Davis and San Diego State each sent two-person teams\u003c/a> to take part in the business incubator competition, where students from Minority Serving Institutions pitch innovative uses for NASA’s intellectual property.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Getting a federal tax credit for buying an electric vehicle is about to get a lot easier — or at least, a lot faster.\u003c/p>\n\u003cp>Starting in January, EV car shoppers won’t have to wait until tax season to pocket the incentive, worth up to $7,500. Instead, the credit will be available as cash in hand on the day of purchase — and it’ll be available regardless of the size of a customer’s tax bill.\u003c/p>\n\u003cp>That’s how Congress wanted these incentives to work when they passed them as part of the Inflation Reduction Act. But when it was rolled out last year, it still required EV buyers to claim their credit when they filed their taxes, a more burdensome route. That’s because the IRS needed time to come up with a new system to make the credits work as point-of-sale rebates instead.\u003c/p>\n\u003cp>That new system to claim the credit was \u003ca href=\"https://home.treasury.gov/news/press-releases/jy1783\">announced Friday\u003c/a>. Here’s what to know.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch2 class=\"edTag\">It’s all meant to happen at the dealership\u003c/h2>\n\u003cp>All the requirements for qualifying for the tax credit still apply — for both EV buyers and automakers.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11960500,news_11944855,news_11956089\"]That means there’s still an income cap for buyers and there are limits to how much cars can cost to qualify for the credit. And not all models from automakers will qualify because of complex rules about how the cars are produced, including where the battery components come from.\u003c/p>\n\u003cp>But for buyers who qualify, actually accessing the credit will be a matter of extra paperwork at the dealership, instead of a monthslong wait for savings delivered through the tax filing process.\u003c/p>\n\u003cp>Dealers will register with the IRS and confirm that a vehicle qualifies for the tax credit, using the vehicle identification number.\u003c/p>\n\u003cp>That addresses one major customer concern. As of now, buyers have to do a lot of homework to figure out whether an EV they want to buy would qualify for a tax credit — navigating through a myriad of \u003ca href=\"https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill\">complicated and shifting rules\u003c/a>.\u003c/p>\n\u003ch2 class=\"edTag\">Delivering money faster — and to more people\u003c/h2>\n\u003cp>Buyers will also now have the option to get the credit instantly instead of waiting for the next year’s tax season.\u003c/p>\n\u003cp>Those purchasing an EV would need to attest that they meet the \u003ca href=\"https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after\">individual requirements\u003c/a> — like that they’re purchasing the vehicle for personal use, they’re not a dependent on anyone’s taxes, and they’re under the income limit.\u003c/p>\n\u003cp>Then they’d transfer the tax credit to the dealership, and in exchange, the dealer will either give them that much in cash or as a down payment toward the vehicle. The dealer will submit documentation to the IRS, and the IRS says dealers will be reimbursed “promptly” — within 72 hours or so.\u003c/p>\n\u003cp>Significantly, a buyer taking the credit at the dealership can get it regardless of what their tax bill is that year. Previously, a buyer would need to owe $7,500 in taxes in a given year to get the full benefit of the credit.\u003c/p>\n\u003cp>That functioned like an income \u003cem>minimum\u003c/em>, since many low- and middle-income families owe less than that in taxes. It was also just another headache for people trying to figure out how much the credit was actually worth to them.\u003c/p>\n\u003cp>Now, even families with no tax liability at all can get the tax credit.\u003c/p>\n\u003cp>Meanwhile, tax credits for \u003cem>used\u003c/em> electric vehicles (worth 30% of the price of the vehicle, up to $4,000) will also be available at the point of sale, through the same system of transferring the credit to the dealership. There is a \u003ca href=\"https://www.irs.gov/credits-deductions/used-clean-vehicle-credit\">lower income cap\u003c/a> for that program, and some additional criteria for the vehicles.\u003c/p>\n\u003cfigure id=\"attachment_11963696\" class=\"wp-caption alignnone\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11963696\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy.jpg\" alt=\"Politicians, male and female, applaud as they stand around an older white man in a blue suit putting on a mask as he looks down at a document on a desk with the presidential emblem on the front and American flags behind.\" width=\"1600\" height=\"899\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-1020x573.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-1536x863.jpg 1536w\" sizes=\"(max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Biden puts on his mask after signing the Inflation Reduction Act of 2022, in the State Dining Room of the White House in Washington, DC, on Aug. 16, 2022. The massive law included a complicated tax credit for electric vehicles. \u003ccite>(Mandel Ngan/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2 class=\"edTag\">There are caveats, though\u003c/h2>\n\u003cp>Things can still go wrong. The IRS says there are provisions in place to prevent fraud and deception on the part of dealerships, and dealers can only participate in this program if they’re current on their own taxes.\u003c/p>\n\u003cp>And there’s one concrete situation where taxpayers may need to give back the credit.\u003c/p>\n\u003cp>Buyers can qualify under the income cap using either the current year’s income or the previous year’s, whichever is lower. If it turns out their income was over the cap in \u003cem>both \u003c/em>years, and they already received the tax credit through a dealership, they would need to repay the tax credit to the IRS.\u003c/p>\n\u003cp>The income limits for a new vehicle are $150,000 adjusted gross income for an individual, $225,000 for a head of household and $300,000 for a married couples filing jointly or surviving spouses.\u003c/p>\n\u003cp>For a used vehicle, the income caps are $75,000 for an individual, $112,500 for heads of households, and $150,000 for married couples filing jointly or surviving spouses.\u003c/p>\n\u003ch2 class=\"edTag\">The new system could make a big difference\u003c/h2>\n\u003cp>Though this will simplify things for EV shoppers, the tax credits still remain complicated as the government juggles both encouraging people to buy EVs while also pushing car companies to move more of their supply chains to the U.S.\u003c/p>\n\u003cp>But a point-of-sale rebate should at least make the credits less of a guessing and waiting game.\u003c/p>\n\u003cp>The changes “will make a tremendous difference,” says Elizabeth Krear, the vice president of the electric vehicle practice at auto data giant JD Power. “That’s $7,500 right there at the time of the transaction — versus having to finance at a higher price, which increases the monthly payments, and then waiting for that tax rebate down the line sometime in April.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "Starting January, electric car shoppers will receive up to $7,500 cash-in-hand on the day they purchase an EV, no longer having to wait for a tax rebate. ",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Getting a federal tax credit for buying an electric vehicle is about to get a lot easier — or at least, a lot faster.\u003c/p>\n\u003cp>Starting in January, EV car shoppers won’t have to wait until tax season to pocket the incentive, worth up to $7,500. Instead, the credit will be available as cash in hand on the day of purchase — and it’ll be available regardless of the size of a customer’s tax bill.\u003c/p>\n\u003cp>That’s how Congress wanted these incentives to work when they passed them as part of the Inflation Reduction Act. But when it was rolled out last year, it still required EV buyers to claim their credit when they filed their taxes, a more burdensome route. That’s because the IRS needed time to come up with a new system to make the credits work as point-of-sale rebates instead.\u003c/p>\n\u003cp>That new system to claim the credit was \u003ca href=\"https://home.treasury.gov/news/press-releases/jy1783\">announced Friday\u003c/a>. Here’s what to know.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>That means there’s still an income cap for buyers and there are limits to how much cars can cost to qualify for the credit. And not all models from automakers will qualify because of complex rules about how the cars are produced, including where the battery components come from.\u003c/p>\n\u003cp>But for buyers who qualify, actually accessing the credit will be a matter of extra paperwork at the dealership, instead of a monthslong wait for savings delivered through the tax filing process.\u003c/p>\n\u003cp>Dealers will register with the IRS and confirm that a vehicle qualifies for the tax credit, using the vehicle identification number.\u003c/p>\n\u003cp>That addresses one major customer concern. As of now, buyers have to do a lot of homework to figure out whether an EV they want to buy would qualify for a tax credit — navigating through a myriad of \u003ca href=\"https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill\">complicated and shifting rules\u003c/a>.\u003c/p>\n\u003ch2 class=\"edTag\">Delivering money faster — and to more people\u003c/h2>\n\u003cp>Buyers will also now have the option to get the credit instantly instead of waiting for the next year’s tax season.\u003c/p>\n\u003cp>Those purchasing an EV would need to attest that they meet the \u003ca href=\"https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after\">individual requirements\u003c/a> — like that they’re purchasing the vehicle for personal use, they’re not a dependent on anyone’s taxes, and they’re under the income limit.\u003c/p>\n\u003cp>Then they’d transfer the tax credit to the dealership, and in exchange, the dealer will either give them that much in cash or as a down payment toward the vehicle. The dealer will submit documentation to the IRS, and the IRS says dealers will be reimbursed “promptly” — within 72 hours or so.\u003c/p>\n\u003cp>Significantly, a buyer taking the credit at the dealership can get it regardless of what their tax bill is that year. Previously, a buyer would need to owe $7,500 in taxes in a given year to get the full benefit of the credit.\u003c/p>\n\u003cp>That functioned like an income \u003cem>minimum\u003c/em>, since many low- and middle-income families owe less than that in taxes. It was also just another headache for people trying to figure out how much the credit was actually worth to them.\u003c/p>\n\u003cp>Now, even families with no tax liability at all can get the tax credit.\u003c/p>\n\u003cp>Meanwhile, tax credits for \u003cem>used\u003c/em> electric vehicles (worth 30% of the price of the vehicle, up to $4,000) will also be available at the point of sale, through the same system of transferring the credit to the dealership. There is a \u003ca href=\"https://www.irs.gov/credits-deductions/used-clean-vehicle-credit\">lower income cap\u003c/a> for that program, and some additional criteria for the vehicles.\u003c/p>\n\u003cfigure id=\"attachment_11963696\" class=\"wp-caption alignnone\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11963696\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy.jpg\" alt=\"Politicians, male and female, applaud as they stand around an older white man in a blue suit putting on a mask as he looks down at a document on a desk with the presidential emblem on the front and American flags behind.\" width=\"1600\" height=\"899\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-1020x573.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/10/gettyimages-1242546341_wide-eb9350bfe7e2461949ec77b0b0e3272c5419f8e0-s1600-c85-copy-1536x863.jpg 1536w\" sizes=\"(max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Biden puts on his mask after signing the Inflation Reduction Act of 2022, in the State Dining Room of the White House in Washington, DC, on Aug. 16, 2022. The massive law included a complicated tax credit for electric vehicles. \u003ccite>(Mandel Ngan/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2 class=\"edTag\">There are caveats, though\u003c/h2>\n\u003cp>Things can still go wrong. The IRS says there are provisions in place to prevent fraud and deception on the part of dealerships, and dealers can only participate in this program if they’re current on their own taxes.\u003c/p>\n\u003cp>And there’s one concrete situation where taxpayers may need to give back the credit.\u003c/p>\n\u003cp>Buyers can qualify under the income cap using either the current year’s income or the previous year’s, whichever is lower. If it turns out their income was over the cap in \u003cem>both \u003c/em>years, and they already received the tax credit through a dealership, they would need to repay the tax credit to the IRS.\u003c/p>\n\u003cp>The income limits for a new vehicle are $150,000 adjusted gross income for an individual, $225,000 for a head of household and $300,000 for a married couples filing jointly or surviving spouses.\u003c/p>\n\u003cp>For a used vehicle, the income caps are $75,000 for an individual, $112,500 for heads of households, and $150,000 for married couples filing jointly or surviving spouses.\u003c/p>\n\u003ch2 class=\"edTag\">The new system could make a big difference\u003c/h2>\n\u003cp>Though this will simplify things for EV shoppers, the tax credits still remain complicated as the government juggles both encouraging people to buy EVs while also pushing car companies to move more of their supply chains to the U.S.\u003c/p>\n\u003cp>But a point-of-sale rebate should at least make the credits less of a guessing and waiting game.\u003c/p>\n\u003cp>The changes “will make a tremendous difference,” says Elizabeth Krear, the vice president of the electric vehicle practice at auto data giant JD Power. “That’s $7,500 right there at the time of the transaction — versus having to finance at a higher price, which increases the monthly payments, and then waiting for that tax rebate down the line sometime in April.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>California is eliminating its popular electric car rebate program — which often runs out of money and has long waiting lists — to focus on providing subsidies only to lower-income car buyers.\u003c/p>\n\u003cp>The \u003ca href=\"https://cleanvehiclerebate.org/en\">Clean Vehicle Rebate Project\u003c/a>, in existence since 2010, will end when it runs out of money this year. In its place, \u003ca href=\"https://ww2.arb.ca.gov/news/californias-clean-vehicle-rebate-program-will-transition-helping-low-income-residents\">the state will expand a program\u003c/a> next year that provides subsidies only to residents with low-to-middle income — those who have more trouble affording electric cars.\u003c/p>\n\u003cp>The income limits will be much more restrictive. Californians who earn more than 300% of the \u003ca href=\"https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines\">federal poverty level\u003c/a> will no longer qualify for a state subsidy when they purchase an electric car, according to the California Air Resources Board. Currently, that level is $43,740 for an individual and $90,000 for a family of four, with sliding scales for household size.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In comparison, under the existing program that is being eliminated, individuals earning up to $135,000 and joint filers earning up to $200,000 qualified. The rebates for battery-powered cars varied from $7,500 for households with lower-income to $2,000 for those with higher income.\u003c/p>\n\u003cp>Experts say the old program has been a key driver for helping Californians transition to electric cars. But now that the vehicles have become mainstream, the state will shift the emphasis to helping people who can’t afford their high price tags.\u003c/p>\n\u003cp>“The goal here is not to eliminate options for one group of motorists at the expense of another, but to assist those who’ve been unable to purchase a cleaner vehicle and to broaden and deepen the state’s ZEV (zero-emission vehicle) fleet. We need everyone possible to afford a ZEV, and this has been part of the plan to do that for a number of years,” said air board spokesman David Clegern.[pullquote align=\"right\" size=\"medium\" citation=\"David Clegern, California Air Resources Board\"]‘The goal here is not to eliminate options for one group of motorists at the expense of another, but to assist those who’ve been unable to purchase a cleaner vehicle.’[/pullquote]The program called \u003ca href=\"https://ww2.arb.ca.gov/our-work/programs/clean-cars-4-all\">Clean Cars 4 All \u003c/a>will be expanded statewide next year; it currently is available only in the five largest air districts. The revamped program will give people statewide who meet the income requirements up to $12,000 to scrap and replace their older gas-powered cars with cleaner alternatives. Those not getting rid of an older car can qualify for up to $7,500 in purchase grants.\u003c/p>\n\u003cp>Car buyers also may qualify for a federal \u003ca href=\"https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after\">tax credit \u003c/a>of up to $7,500 for some vehicles, with income restrictions of $150,000 for individuals and $300,000 for married couples filing jointly.\u003c/p>\n\u003cp>Bill Magavern, policy director of the Coalition for Clean Air, a Los Angeles-based advocacy group, said the state will “democratize clean transportation” with its more targeted subsidies.\u003c/p>\n\u003cp>“It is time for (the state rebate) to go away,” Magavern said. “When EVs were considered to be exotic and strange and out of reach for most people, it was important to have this broad-based rebate. But now EVs have gone mainstream.”\u003c/p>\n\u003cp>But some car dealers worry that ending the rebate for middle-to–higher income Californians might discourage people from buying the cars.\u003c/p>\n\u003cp>Jessie Dosanjh, president of the California Automotive Retailing Group, a network of dealerships in the San Francisco Bay Area where about 20% of sales are electric vehicles, said the cars are still relatively expensive compared to other options.\u003c/p>\n\u003cp>Still, he said he understands why the state is shifting its focus to consumers with low-to-middle-income.\u003c/p>\n\u003cp>“As we’re moving into more mass adoption, I think it’s critical to have that income-based structure, because it opens up the market to some people who might be on the fringe, and not be able to afford it due to income limitations,” Dosanjh said.[aside label=\"Related Stories\" postID=\"news_11956089,news_11944855,news_11932078\"]The average price of an electric car was \u003ca href=\"https://www.coxautoinc.com/market-insights/kbb-atp-july-2023/#:~:text=According%20to%20Kelley%20Blue%20Book,%24199%20from%20one%20year%20ago.\">$53,469 in July\u003c/a>, about 18% lower than a year earlier. The industry average for all 2023 cars in July was about $48,300.\u003c/p>\n\u003cp>The Clean Vehicle Rebate Project has issued half a million rebates worth $1.2 billion. And the program remains wildly popular, hitting a record 14,000 applications in July, the air board said.\u003c/p>\n\u003cp>Now its website announces: “Funds for CVRP are nearly exhausted. Applications received on or after September 6, 2023, will be placed on a standby list and are not guaranteed a rebate.”\u003c/p>\n\u003cp>“While it is disappointing to see the most successful incentive program in history end, the march toward eliminating traditional (rebates) and directing the very limited funding to equity programs has been clear for several years now,” said Steve Douglas, a vice president at the Alliance for Automotive Innovation, an auto industry group.\u003c/p>\n\u003ch2>The goal: Making electric cars affordable for everyone\u003c/h2>\n\u003cp>\u003ca href=\"https://calmatters.org/series/california-electric-vehicles/\">California is trying to electrify its 25 million cars, clean up its severe air pollution and reduce the state’s reliance on fossil fuels\u003c/a>. To do so, the state is mandating that 35% of new 2026 car models sold in California must be zero-emissions, climbing to 68% in 2030 and 100% in 2035.\u003c/p>\n\u003cp>For the mandate to succeed, the government has to ensure that people throughout the state, in all income levels, can afford electric cars.[pullquote align=\"right\" size=\"medium\" citation=\"Bill Magavern, policy director, Coalition for Clean Air\"]‘It is time for (the state rebate) to go away. When EVs were considered to be exotic and strange and out of reach for most people, it was important to have this broad-based rebate. But now EVs have gone mainstream.’[/pullquote]But a \u003ca href=\"https://calmatters.org/environment/2023/03/california-electric-cars-demographics/\">CalMatters’ statewide analysis of ZIP codes earlier this year \u003c/a>showed extreme disparities in electric car ownership. Communities with mostly white and Asian high-income residents have the state’s highest concentrations of zero-emission cars. In stark contrast, California ZIP codes with the largest percentages of Latino and Black residents have extremely low proportions of electric cars — many with no electric cars at all.\u003c/p>\n\u003cp>Income seems to be the main driver of the disparities, according to CalMatters’ analysis. Most median household incomes in the top 10 ZIP codes for electric cars exceeded $200,000, much higher than the statewide $84,097.\u003c/p>\n\u003cp>Dosanjh, from the Bay Area car dealership group, said early adopters were often higher-earning people who worked in the technology industry, or at least technology enthusiasts. But these days he said he sees more people buying electric cars to replace their gas-powered vehicles, rather than having them as novelty and luxury items.\u003c/p>\n\u003cp>More than \u003ca href=\"https://www.energy.ca.gov/data-reports/energy-almanac/zero-emission-vehicle-and-infrastructure-statistics/new-zev-sales\">1.6 million zero-emission vehicles\u003c/a> have been sold in California; one out of four cars sold during the second quarter of this year were zero emissions.\u003c/p>\n\u003cp>Erich Muehlegger, a professor of economics at UC Davis, said the Clean Vehicle Rebate Project has been “the main workhorse to encourage people to buy zero-emissions vehicles.”\u003c/p>\n\u003cp>But the rebate program has been subject to \u003ca href=\"https://calmatters.org/environment/2022/08/california-electric-cars-rebates/\">inconsistent and inadequate funding\u003c/a>, according to CalMatters reporting. Last year the program was flooded with requests for the money, resulting in long waits.\u003c/p>\n\u003cp>In addition, the various state programs were confusing to Californians. Now they can apply in one place.\u003c/p>\n\u003cp>“Closing out the (rebate) program has been the plan for some time, and in 2015 the decision was made that when ZEVs reached 16% of new vehicle sales, [that] would be the point where that would happen. We let it run longer (25%) just to ensure we had a healthy market,” Clegern said.\u003c/p>\n\u003cp>“The state concluded that shifting financing to Californians who may have been left out of the ZEV market because of their income is the right thing to do and also deepens the market,” he said.\u003c/p>\n\u003cp>The program that will be expanded, Clean Cars 4 All, has assisted households with low-to-middle-income as well as families who live in areas designated as “disadvantaged communities,” with low socioeconomic status as well as environmental risks.\u003c/p>\n\u003cp>The new program will be rolled out with a revamped financing assistance program for buyers.\u003c/p>\n\u003cp>The money comes from the state’s greenhouse gas reduction fund, which raises money by selling carbon allowances to pollution-emitting businesses, as well as money from the state’s budget.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California is eliminating its popular electric car rebate program — which often runs out of money and has long waiting lists — to focus on providing subsidies only to lower-income car buyers.\u003c/p>\n\u003cp>The \u003ca href=\"https://cleanvehiclerebate.org/en\">Clean Vehicle Rebate Project\u003c/a>, in existence since 2010, will end when it runs out of money this year. In its place, \u003ca href=\"https://ww2.arb.ca.gov/news/californias-clean-vehicle-rebate-program-will-transition-helping-low-income-residents\">the state will expand a program\u003c/a> next year that provides subsidies only to residents with low-to-middle income — those who have more trouble affording electric cars.\u003c/p>\n\u003cp>The income limits will be much more restrictive. Californians who earn more than 300% of the \u003ca href=\"https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines\">federal poverty level\u003c/a> will no longer qualify for a state subsidy when they purchase an electric car, according to the California Air Resources Board. Currently, that level is $43,740 for an individual and $90,000 for a family of four, with sliding scales for household size.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In comparison, under the existing program that is being eliminated, individuals earning up to $135,000 and joint filers earning up to $200,000 qualified. The rebates for battery-powered cars varied from $7,500 for households with lower-income to $2,000 for those with higher income.\u003c/p>\n\u003cp>Experts say the old program has been a key driver for helping Californians transition to electric cars. But now that the vehicles have become mainstream, the state will shift the emphasis to helping people who can’t afford their high price tags.\u003c/p>\n\u003cp>“The goal here is not to eliminate options for one group of motorists at the expense of another, but to assist those who’ve been unable to purchase a cleaner vehicle and to broaden and deepen the state’s ZEV (zero-emission vehicle) fleet. We need everyone possible to afford a ZEV, and this has been part of the plan to do that for a number of years,” said air board spokesman David Clegern.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The program called \u003ca href=\"https://ww2.arb.ca.gov/our-work/programs/clean-cars-4-all\">Clean Cars 4 All \u003c/a>will be expanded statewide next year; it currently is available only in the five largest air districts. The revamped program will give people statewide who meet the income requirements up to $12,000 to scrap and replace their older gas-powered cars with cleaner alternatives. Those not getting rid of an older car can qualify for up to $7,500 in purchase grants.\u003c/p>\n\u003cp>Car buyers also may qualify for a federal \u003ca href=\"https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after\">tax credit \u003c/a>of up to $7,500 for some vehicles, with income restrictions of $150,000 for individuals and $300,000 for married couples filing jointly.\u003c/p>\n\u003cp>Bill Magavern, policy director of the Coalition for Clean Air, a Los Angeles-based advocacy group, said the state will “democratize clean transportation” with its more targeted subsidies.\u003c/p>\n\u003cp>“It is time for (the state rebate) to go away,” Magavern said. “When EVs were considered to be exotic and strange and out of reach for most people, it was important to have this broad-based rebate. But now EVs have gone mainstream.”\u003c/p>\n\u003cp>But some car dealers worry that ending the rebate for middle-to–higher income Californians might discourage people from buying the cars.\u003c/p>\n\u003cp>Jessie Dosanjh, president of the California Automotive Retailing Group, a network of dealerships in the San Francisco Bay Area where about 20% of sales are electric vehicles, said the cars are still relatively expensive compared to other options.\u003c/p>\n\u003cp>Still, he said he understands why the state is shifting its focus to consumers with low-to-middle-income.\u003c/p>\n\u003cp>“As we’re moving into more mass adoption, I think it’s critical to have that income-based structure, because it opens up the market to some people who might be on the fringe, and not be able to afford it due to income limitations,” Dosanjh said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The average price of an electric car was \u003ca href=\"https://www.coxautoinc.com/market-insights/kbb-atp-july-2023/#:~:text=According%20to%20Kelley%20Blue%20Book,%24199%20from%20one%20year%20ago.\">$53,469 in July\u003c/a>, about 18% lower than a year earlier. The industry average for all 2023 cars in July was about $48,300.\u003c/p>\n\u003cp>The Clean Vehicle Rebate Project has issued half a million rebates worth $1.2 billion. And the program remains wildly popular, hitting a record 14,000 applications in July, the air board said.\u003c/p>\n\u003cp>Now its website announces: “Funds for CVRP are nearly exhausted. Applications received on or after September 6, 2023, will be placed on a standby list and are not guaranteed a rebate.”\u003c/p>\n\u003cp>“While it is disappointing to see the most successful incentive program in history end, the march toward eliminating traditional (rebates) and directing the very limited funding to equity programs has been clear for several years now,” said Steve Douglas, a vice president at the Alliance for Automotive Innovation, an auto industry group.\u003c/p>\n\u003ch2>The goal: Making electric cars affordable for everyone\u003c/h2>\n\u003cp>\u003ca href=\"https://calmatters.org/series/california-electric-vehicles/\">California is trying to electrify its 25 million cars, clean up its severe air pollution and reduce the state’s reliance on fossil fuels\u003c/a>. To do so, the state is mandating that 35% of new 2026 car models sold in California must be zero-emissions, climbing to 68% in 2030 and 100% in 2035.\u003c/p>\n\u003cp>For the mandate to succeed, the government has to ensure that people throughout the state, in all income levels, can afford electric cars.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>But a \u003ca href=\"https://calmatters.org/environment/2023/03/california-electric-cars-demographics/\">CalMatters’ statewide analysis of ZIP codes earlier this year \u003c/a>showed extreme disparities in electric car ownership. Communities with mostly white and Asian high-income residents have the state’s highest concentrations of zero-emission cars. In stark contrast, California ZIP codes with the largest percentages of Latino and Black residents have extremely low proportions of electric cars — many with no electric cars at all.\u003c/p>\n\u003cp>Income seems to be the main driver of the disparities, according to CalMatters’ analysis. Most median household incomes in the top 10 ZIP codes for electric cars exceeded $200,000, much higher than the statewide $84,097.\u003c/p>\n\u003cp>Dosanjh, from the Bay Area car dealership group, said early adopters were often higher-earning people who worked in the technology industry, or at least technology enthusiasts. But these days he said he sees more people buying electric cars to replace their gas-powered vehicles, rather than having them as novelty and luxury items.\u003c/p>\n\u003cp>More than \u003ca href=\"https://www.energy.ca.gov/data-reports/energy-almanac/zero-emission-vehicle-and-infrastructure-statistics/new-zev-sales\">1.6 million zero-emission vehicles\u003c/a> have been sold in California; one out of four cars sold during the second quarter of this year were zero emissions.\u003c/p>\n\u003cp>Erich Muehlegger, a professor of economics at UC Davis, said the Clean Vehicle Rebate Project has been “the main workhorse to encourage people to buy zero-emissions vehicles.”\u003c/p>\n\u003cp>But the rebate program has been subject to \u003ca href=\"https://calmatters.org/environment/2022/08/california-electric-cars-rebates/\">inconsistent and inadequate funding\u003c/a>, according to CalMatters reporting. Last year the program was flooded with requests for the money, resulting in long waits.\u003c/p>\n\u003cp>In addition, the various state programs were confusing to Californians. Now they can apply in one place.\u003c/p>\n\u003cp>“Closing out the (rebate) program has been the plan for some time, and in 2015 the decision was made that when ZEVs reached 16% of new vehicle sales, [that] would be the point where that would happen. We let it run longer (25%) just to ensure we had a healthy market,” Clegern said.\u003c/p>\n\u003cp>“The state concluded that shifting financing to Californians who may have been left out of the ZEV market because of their income is the right thing to do and also deepens the market,” he said.\u003c/p>\n\u003cp>The program that will be expanded, Clean Cars 4 All, has assisted households with low-to-middle-income as well as families who live in areas designated as “disadvantaged communities,” with low socioeconomic status as well as environmental risks.\u003c/p>\n\u003cp>The new program will be rolled out with a revamped financing assistance program for buyers.\u003c/p>\n\u003cp>The money comes from the state’s greenhouse gas reduction fund, which raises money by selling carbon allowances to pollution-emitting businesses, as well as money from the state’s budget.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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