California Rebate Funding for 2018 updates?

[TheMaverick]

Does any one know if there is indication that funding will resume for all buyers in 2018?

The $2500 rebate for folks in California is currently only available for Low/Moderate income customers since funds have run out for all other buyers. If you are within the low/moderate income limits you actually get $4,500.

There is a meeting on October 4th (Low Carbon Transportation Investments and AQIP Funding Plans) which seems to be about reviewing next years budget. But not sure if it is or if future rebates died along with proposal AB1184?

 

[WileyTheMan]

Man they gutted that bill.

Who knows how it'll go at this point. Funding is the biggest issue I think. I just hope the compensation is retroactive for those who purchased EVs before they made up their minds.

 

[CheeseJam]

Here's a post someone made in the California section of the forums (California AB1184)

"Now that the legislative session is over, it appears that AB 1184 died, but AB 544 (HOV program modification) and AB 615 (CVRP extension) passed. It appears there was no substantive change to the CVRP program, it was merely extended to 1/1/2019. Presumably funding will come from the recently extended Cap & Trade program."

AB 1184 was for creating a whole new EV incentive program--this bill died. It seems that the CVRP program will continue in its current state until 2019 (according to AB 615). As someone who is getting a Model 3 in January-March, I feel pretty confident about getting the rebate. I'm not too worried about them coming up with funding for it, but I guess it could be a problem.

It does look like they will be discussing funding for CVRP on October 4th according to here: https://www.arb.ca.gov/msprog/aqip/fundplan/1718_draft_funding_plan_workshop_100417.pdf

Looks like they are proposing $140 million in rebates for standard (not low income) applicants: https://www.arb.ca.gov/msprog/aqip/fundplan/1718_funding_summary_table.pdf That's enough for 56,000 $2500 rebates. This money will apparently come from the Cap & Trade program auctions: https://www.arb.ca.gov/msprog/mailouts/msc1717/msc1717.pdf

 

[ELRev]

The $2500 rebate for folks in California is currently only available for Low/Moderate income customers since funds have run out for all other buyers. If you are within the low/moderate income limits you actually get $4,500.

I'm floored by this. I haven't done nearly enough research on this topic, but I am peripherally aware of the details. I knew there was now an income cutoff for the rebate, which I do not meet, so I'll qualify for some, but I looked into your claim above, and if I'm reading this right, you only qualify for the increased, $4,500 rebate if you earn $36,180 annually as a household of 1, which I am. That's more than the car, or really any EV. What a sham.

As for your question, the last I heard was in this article that dashed all hope as I can see it for any additional reprieve for us Model 3 buyers. Seems like we'll get the standard $2,500 at best, or nothing.

 

[gambit48]

Actually, most of the other EVs are under that income limit for a single individual. It's basically the current LR Model 3 and the Bolt that are over that amount.

I guess their hearts were in the right place. Maybe? Realistically, they're smoking crack. Even with some of the crazy discounted prices people were getting Leafs and 500e's for, after housing and food and stuff, those prices are still too high for people at those income levels.

 

[Waiting4M3]

If you make $36K, you'll only incur ~$3400 in federal tax assuming single filing and standard deduction (estimated using 2016 tax table), which means you can't take full advantage of the $7500 federal tax incentive. You need ~$57K income to owe $7500 in federal tax to get that full benefit. So even if someone has little or no taxable income (retired living off savings), but can buy the car with savings, it's still better to create some taxable income (for example sell some stocks for capital gain), in order to get the full federal tax incentives.

 

[ELRev]

Actually, most of the other EVs are under that income limit for a single individual. It's basically the current LR Model 3 and the Bolt that are over that amount.

Yes. Technically. But we're talking a year's worth of income for a household considered, by most standards, to be "poor." "Unrealistic" is an understatement.

I'd love to see how many people benefit from that $4500 rebate this year. My guess would be 0.

 

[mrtian97]

the CA rebate is applicable to even lease car, that’s made the Fiat 500e lease for only $65/ month for a car with msrp $33,000 (as Fiat applied the $7,500 federal rebate to reduce the capital cost). Tesla and other car companies do not do this for their lease program. But I know Fiat 500e is basically loss leader for the Company and it’s compliance car that offered only in Ca and OR.

 

[gambit48]

Yes. Technically. But we're talking a year's worth of income for a household considered, by most standards, to be "poor." "Unrealistic" is an understatement.

I'd love to see how many people benefit from that $4500 rebate this year. My guess would be 0.

There's always fraud. Those under reporting income. Also, think of how many young adults make under that and still live with/are supported by parents.

the CA rebate is applicable to even lease car, that’s made the Fiat 500e lease for only $65/ month for a car with msrp $33,000 (as Fiat applied the $7,500 federal rebate to reduce the capital cost). Tesla and other car companies do not do this for their lease program. But I know Fiat 500e is basically loss leader for the Company and it’s compliance car that offered only in Ca and OR.

Yeah, there are other forums where the members go crazy when those insane lease deals come out. The Fiat especially. You save way more than you pay in monthly payments.

 

[ELRev]

There's always fraud. Those under reporting income. Also, think of how many young adults make under that and still live with/are supported by parents.

Your points only further highlight the counterproductiveness of such a policy. If the point is to make these cars more affordable for the average consumer, they've failed. This only benefits the wealthy or the unethical.

 

[patrick40363]

Your points only further highlight the counterproductiveness of such a policy. If the point is to make these cars more affordable for the average consumer, they've failed. This only benefits the wealthy or the unethical.

It is also to get cleaner cars on the road too.

 

[TheMaverick]

Thanks for all this great info everyone, specially CheeseJam! Meeting was yesterday, looks like the proposed funding plan will be available to view by the 13th of this month and it will go to the Board for consideration on November 15-16..

 

[ebmcs03]

Can someone explain how to read this chart?

CVRP Funding Status

 

[tracksyde]

Can someone explain how to read this chart?

CVRP Funding Status

I am not a lawyer.. but it looks like for 2018 there's about $53M reserved for rebates, $39M of which has been distributed or reserved so far.

 

[bthienthai]

I am not a lawyer.. but it looks like for 2018 there's about $53M reserved for rebates, $39M of which has been distributed or reserved so far.

$55,196,320 reserved to be exact. $39,267,500 has been reserved and distributed. So, $15,928,820 is left for you and me. At $2,500 a pop, that's about 6,371 model 3. Some may even get an addition $2k if their income meets the requirements

 

[ebmcs03]

Ouch. Only 6,000 left? =(

Please Tesla. I need my car now.

 

[barjohn]

You will still get your rebate even if the current fund runs out, it will just take longer as you will have to wait until the fund is replenished for next fiscal year. The fund will most likely run out by sometime in June just like it did last year.