California Adds $2,000 EV Credit For Residents, Here's How Much You Can Save Now

Electric vehicles in the U.S. qualify for federal credits, state credits and other credits that can knock the starting price down to make them in line with traditional automobiles.

Tesla Inc TSLA is among the companies that benefit from certain credits for electric vehicles.

One state is increasing the amount of credits for those seeking to buy an electric vehicle.

What Happened: California has wanted for several years to ban the sale of traditional automobiles by 2035.

One way to achieve its goal of more electric vehicles on the road may be to increase the tax credits for buyers who purchase one.

As shared by Electrek, California is increasing the incentives for low- and moderate-income consumers in the state when purchasing an electric vehicle.

The additional $2,000 in incentives means some California residents will get savings of $9,500 from the state. Residents also qualify for $7,500 in tax credits federally for electric vehicles for many models.

This brings the total savings to $17,000 or more for qualifying residents in California when purchasing a new electric vehicle.

An “EV Charge Card” will be issued for qualifying residents according to Electrek, to be used at public charging stations.

To qualify for the increased incentives from California, a household has to have income less than or equal to 400% of the federal poverty level. This means that individuals or a family of four with income of $59,230 or $120,000 respectively and anything less would qualify.

Related Link: Used Tesla Vehicles May Now Qualify For $4,000 Tax Credit

Why It’s Important: On top of the increased incentives from the state, certain regions of California also have incentives of $2,000 to $4,000 for new electric vehicle purchases.

Residents of some regions in the state could get over $20,000 in incentives to purchase a new electric vehicle.

Benzinga recently shared a story of a California resident using incentives to buy a new Tesla Model 3 for under $14,000.

A story of Colorado incentives also saw interest on social media with new tax incentives getting $21,000 off the purchase of a new electric vehicle, bringing the cost of a new Tesla Model 3 RWD to $19,240.

For years, Tesla CEO Elon Musk has had a goal of having a new electric vehicle that cost consumers under $25,000. With certain state and federal incentives, this price point has now become closer to reality.

Read Next: Here's How Many Vehicles Tesla Has Delivered And Produced In Each Quarter Since 2019

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