California does not have a state EV tax credit. Instead, the state runs income-qualified grant programs through the California Air Resources Board that can put up to $14,000 toward a new or used plug-in vehicle for eligible households. The federal clean vehicle credit, which many Californians stacked on top of state rebates in past years, ended for vehicles acquired after September 30, 2025.1Office of the Law Revision Counsel. 26 USC 30D – Clean Vehicle Credit So if you’re shopping now, the question isn’t which tax credit to claim. It’s which grant program you qualify for.
The Federal EV Credit Has Ended
The federal new clean vehicle credit under Section 30D no longer applies to vehicles acquired after September 30, 2025. Congress terminated it through Public Law 119-21, and the IRS has confirmed no replacement is coming.2Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21 The previously owned clean vehicle credit under Section 25E ended on the same date, so used EV buyers lost that federal benefit too.3Internal Revenue Service. Used Clean Vehicle Credit
One narrow exception: if you bought or leased a qualifying vehicle on or before September 30, 2025, and took physical possession afterward, you can still claim the credit on your 2025 or 2026 return.4Internal Revenue Service. Clean Vehicle Tax Credits For anyone shopping today, that door is closed.
The Clean Vehicle Rebate Project Is Closed
The state program most people remember, California’s Clean Vehicle Rebate Project, permanently closed to new applications on November 8, 2023. CARB has confirmed it will not reopen.5Clean Vehicle Rebate Project. FAQs If you’ve seen references to CVRP’s income caps or its $2,000-to-$7,000 rebates on a dealer’s site, those describe a program that no longer exists. The replacements work differently and serve a narrower, income-qualified population.
Driving Clean Assistance Program
The Driving Clean Assistance Program is CARB’s statewide replacement for CVRP. It’s open to income-qualified residents who don’t live in one of the five air districts that run Clean Cars 4 All, and it provides grants toward the purchase or lease of a new or used plug-in hybrid, battery electric, or fuel cell vehicle.6California Air Resources Board. Driving Clean Assistance Program
Grant amounts depend on whether you scrap an older high-emission vehicle and whether you live in a disadvantaged community census tract:
- Up to $12,000 if you live in a disadvantaged community and scrap an older vehicle.
- Up to $10,000 if you scrap an older vehicle but live outside a disadvantaged community.
- Up to $7,500 if you qualify on income alone and have no vehicle to scrap.
- An additional $2,000 charging incentive for all approved participants, available as a prepaid card for public charging or applied to a home charger installation.
DCAP also provides access to low-interest vehicle loans capped at 8% APR for approved buyers who need help covering the balance. Participants who’d rather not buy a car can direct up to $7,500 toward mobility options like transit passes or e-bikes.6California Air Resources Board. Driving Clean Assistance Program
You can’t participate in DCAP if you’ve already received a grant from any CARB light-duty vehicle purchase program, including CVRP or Clean Cars 4 All.
Clean Cars 4 All
Clean Cars 4 All is the district-based program that continues to operate in five regions: South Coast, Bay Area, San Joaquin Valley, Sacramento, and San Diego.7California Air Resources Board. Clean Cars 4 All If you live in one of those districts, you apply through that district’s portal rather than through DCAP.
The structure is scrap-and-replace. You retire an older, high-polluting vehicle and receive a grant toward a cleaner replacement. Grants reach up to $12,000 for a battery electric or fuel cell vehicle, plus up to $2,000 for home charging or a public charging credit. Residents of disadvantaged community census tracts qualify for the highest tier.
What Vehicle You Can Scrap
The vehicle you retire must be currently registered in your name, operational, and old enough to qualify. The model-year cutoff varies by district. In the Bay Area, for instance, the scrap vehicle must be model year 2007 or older.8Bay Area Air Quality Management District. Eligibility – Clean Cars for All Verify your district’s rule before counting on it. The replacement vehicle must be eight years old or newer and can be new or used.
Income Limits
Income caps are set by household size, not filing status. The Bay Area’s 2025 limits run from $46,950 for a single-person household to $96,450 for a family of four.8Bay Area Air Quality Management District. Eligibility – Clean Cars for All Caps differ somewhat across districts, so confirm with yours. As with DCAP, you can take an e-bike or transit voucher instead of a car.
Home Charger Incentives
One federal credit is still alive, briefly. The Section 30C alternative fuel vehicle refueling property credit covers 30% of installation costs, up to $1,000 per charging port, for property placed in service through June 30, 2026.9Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit After that date, it expires under the same law that ended the vehicle credits.
There’s a geographic catch. Your home must sit in a qualifying census tract, meaning either a low-income community or a non-urban area. The IRS offers a lookup tool keyed to your 11-digit census tract identifier; check eligibility before buying equipment.10Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit for Individuals A lot of suburban California zip codes don’t qualify.
California’s investor-owned utilities also run charger rebate programs authorized by the California Public Utilities Commission. PG&E’s Empower EV program, as an example, has offered Level 2 charger and panel-upgrade rebates to low- and moderate-income customers.11California Public Utilities Commission. Charging Infrastructure Deployment and Incentives These utility-funded programs are authorized through December 31, 2026, but individual offerings open and close with funding cycles. Call your utility to confirm what’s currently available.
How to Apply
The route depends on where you live. Clean Cars 4 All applicants use their regional air district’s portal. DCAP applicants use the statewide system. Each district runs its own interface and waitlist, so there isn’t one website that covers everything.
Whichever program you’re applying to, expect to supply:
- Proof of California residency, such as a current utility bill or valid California driver’s license.
- Income verification, typically a federal tax transcript or signed copy of your most recent IRS Form 1040. If you didn’t file, W-2 forms or Social Security benefit statements are usually accepted.
- A complete, signed purchase or lease agreement showing the final price, VIN, and dealership location.
- Scrap vehicle documentation, if your program requires retirement of an older car. Current registration and proof the vehicle runs.
Check every field twice. VINs must match exactly between your sales contract and your application, and income figures should follow the specific line items the program instructions call for, not just the AGI on the front of your 1040. Small inconsistencies send applications into review loops that stretch for months.
Carpool Lane Access Is Gone
One benefit worth flagging because older guides still list it: California’s Clean Air Vehicle decal program ended at midnight on September 30, 2025. The DMV stopped accepting new decal applications on August 29, 2025.12California State Department of Motor Vehicles. Clean Air Vehicle Decals Beginning October 1, 2025, EV drivers have to meet the posted occupancy requirements for HOV lanes like everyone else. Solo carpool-lane access is no longer part of what you get for driving electric in California.