California EV Rebate

Does anyone happen to know if we purchase a new EV now and join the waitlist, will we be eligible if it gets funding again or will it be only for new EV's purchased from that point forward? Also, anyone know the likelihood of it being renewed?

Thanks!

-Javier

The CVRP issues the rebates in the order that the requests are submitted so it is worth getting on the list ASAP. As for if/when it will get funding? It is anyone's guess at this point. The CVRP usually gets is funding through the state budget, but it was excluded this time around from the budget likely to be used as a political bargaining chip for later on in the current legislative session. There is a lot of drama going on in the legislature about extending the Cap and Trade program so CVRP is kind of lost in the background noise. The legislative season ends at the end of this month (August) so there should be more certainty about the state of the CVRP by mid September when the governor approves and vetoes the remaining bills.

All this said, the State of California continues to sounds it's rally cry for more EVs and hybrids to address climate change and ended the rebate program now when sales on EVs are already struggling due to low gas prices would be really foolish IMHO. Foolishness sure hasn't stopped politicians from screwing things up though so who knows...

I'm in the CVRP limbo too waiting on my rebate, but honestly at $6k for 3 years w/ 10,000/yr I am happy as is. The CVRP will be icing on the cake. The Spark EVs are a serious bargain right now while supply lasts.

Yeah, *if* it gets renewed. Don't count on it at this point though..

EV Rebate re-instituted : http://www.hybridcars.com/california-agrees-on-133-million-for-clean-vehicle-rebate-program/

My CVRP rebate check arrived in the mail yesterday!

Don't forget that rebates are considered "additional income" and are taxable. That's why they needed your social security number.

Also just received our rebate check. Are you sure it's taxable?

If it's taxable, then you should get a 'you received income' form around next Feb (such as 1099-MISC).

SparkE said:

If it's taxable, then you should get a 'you received income' form around next Feb (such as 1099-MISC).

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I leased my 2015 Spark EV at the end of May 2015. When I filed my tax return for 2015, the California and San Joaquin County rebates were not taxable and I never received form 1099 for either one.

SparkE said:

If it's taxable, then you should get a 'you received income' form around next Feb (such as 1099-MISC).

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From the California Clean Vehicle Rebate FAQ:

Is my CVRP rebate taxable?

CSE does not issue a 1099 for your rebate. We cannot offer tax advice of any kind, and advise you to contact a certified public accountant or tax professional regarding the taxability of the CVRP rebate.

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My first reaction is that it's a reduction in cost, like any other rebate on the purchase of personal property.
If you sell your personal car for less than you paid for it, you do not have a deductible loss, but if you sell it for more than you paid for it, you do have a taxable gain, just like if you paid $12,000 for Apple stock and later sold it for $12,500.

The $10,000 in government purchase subsidies (more in some counties I've heard) just raises your chance of a taxable gain from virtually impossible to highly unlikely. (but if the subsidies go away, the used Spark market might go up around the $15k+ mark where many of the older leases set the residual)

Perhaps more accurately, the rebate would reduce the cost basis of the asset. Thus, if used for business, the amount that one could depreciate would be reduced accordingly. Likewise, the net cost basis would be compared to any future sales price to determine whether there is a gain or loss. Note that if the asset were used strictly for business, then a loss on the sale would be (or at least could be) recognized.

Better get it while it's available, because there are now caps on the income of buyers: http://evobsession.com/study-californian-clean-vehicle-incentive-program-disproportionately-benefited-wealthy/

I always thought it silly that the fed credit comes with a floor on income.
Don't make enough to pay federal taxes? No credit for you!
Don't make enough to pay $7500 in federal taxes? Reduced credit for you!
Make $200k a year? Here, let us pay you $7500 to buy a new car!

Yup. This is why any and all tax credit should roll-over to following years. That will benefit everyone, not just the rich.

What is "sad" is that most taxes are paid by the rich, so giving these small amount of tax breaks to the poor via roll-over affects overall revenue very little. In fact, it might help in future revenue as the low income who begin to transition to higher income to use that capital that would've been gone to taxes to do things to accelerate their income even further (ie, more taxes later). Unlike welfare, tax credit can only be claimed if your situation gets good enough to have enough tax liability.

But there are anti-EV idiots (right wingers and lefty socialists) who oppose EV tax credit, completely oblivious to economics.

Man, you know what's even worse? Finding out that you make TOO MUCH MONEY to get the rebate. If I'd a known I wasn't going to get the $2500, I'd have fought a lot harder for a smaller down payment. Oh well. :twisted:

Pigwich said:

Man, you know what's even worse? Finding out that you make TOO MUCH MONEY to get the rebate. If I'd a known I wasn't going to get the $2500, I'd have fought a lot harder for a smaller down payment. Oh well. :twisted:

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Check here for more details on the California EV Rebate: https://cleanvehiclerebate.org/eng/income-eligibility