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Income Cap for Vehicle Rebate (SB 1275)?

Discussion in 'California' started by si123ca, Sep 15, 2014.

  1. si123ca

    si123ca Member

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  2. si123ca

    si123ca Member

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    Thanks.
    Here's the relevant text (from section 44258.4(c)(3)):
    "No later than June 30, 2015, adopt revisions to the criteria
    and other requirements for the Clean Vehicle Rebate Project,
    established pursuant to Section 44274, to ensure the following:
    (A) Rebate levels can be phased down in increments based on
    cumulative sales levels as determined by the state board.
    (B) Eligibility is limited based on income.
    (C) Consideration of the conversion to prequalification and
    point-of-sale rebates or other methods to increase participation
    rates."
     
  3. ohmman

    ohmman Maximum Plaid Member

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    And here are the rebates, based on 300% of the poverty level, annual incomes approximate:

    $4000 rebate: Under $48k for a two person family or $73k for a four person famly
    $2500 rebate: Between the above levels and $340k
    $0 rebate: Over $340k income.

    I think this is reasonable.

    Source:
    California gives low-income drivers a break on electric cars - SFGate
     
  4. Lloyd

    Lloyd Active Member

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    I disagree with this proposal. If you are truly trying to make EV's more prevalent to decrease pollution and promote their use, then the rebate should be equal for all. Removing the rebate from a select few is regressive.
     
  5. deonb

    deonb Active Member

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    How does this work exactly?

    I work for a startup, and my income has been less than $48k for the last year, but I can buy a Model X cash. Would I qualify for the rebate?

    Same for someone who is retired.
     
  6. ohmman

    ohmman Maximum Plaid Member

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    #7 ohmman, Jun 27, 2015
    Last edited: Jun 27, 2015
    FYI, it's been voted so it's no longer a proposal.

    While I'll be cut out of a rebate on my MX (assuming this is in place), I still support it. There are vastly more buyers in the sub-$340k/yr range who will be motivated by the incentive than those above. Incentives work most effectively when they're meaningful to the participant. I know plenty of people who can't afford an EV but would like one. I believe this helps bridge that gap.

    - - - Updated - - -

    Retired persons can easily have more than $48k/year in passive income.

    I found this, which provides more detail - I don't know if this is going to be the basis for the expanded program or not:

    http://www.arb.ca.gov/newsrel/efmp_plus_up.pdf

    It appears that to qualify, you must reside in a zip code that includes a disadvantaged census tract. This is a roundabout way of excluding self-employed but high net worth individuals, I am supposing.
     
  7. RobStark

    RobStark Active Member

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    Removing the top 1.5% income earners to leave more rebate money for the 98.5% is the definition of progressive.

    $2500 rebate has near zero effect on the car purchasing decisions on people earning $340k or more.
     
  8. jeffro01

    jeffro01 Active Member

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    Welcome to the world we now live in where those who are successful are demonized and sucked dry so that those who aren't can feel special. Some of you might think that's over the line but I'm getting every increasingly tired of this mentality. While none of these changes directly affect me, $2500 is what I'd get today and our income is below the $340K threshold, that isn't the point. Increasingly you're seeing people use the word "fair"... I feel like we're all now paying a price for an entire generation who grew up in the age where everyone gets a trophy and there are no winners and losers so to speak so now that generation is trying to apply that mentality to the real world...

    Okay I'll shut up now...

    Jeff
     
  9. ohmman

    ohmman Maximum Plaid Member

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    Trying to keep this on topic, I'll merely address your non-incentive comments by saying the statistics on the income gap as well as historical data regarding progressive tax rates disagree that "the world we now live in" is sucking the wealthy dry.

    As far as the incentive goes, incentives are an economic tool used to elicit a desired outcome (as least by the measure of the incentive provider). They are most effective when they are meaningful. This has nothing to do with demonizing wealthy people (who may or may not be successful), but instead is a way to get the most back on the investment. I look at it like this - I'd rather forego a rebate and still buy my EV knowing that it increases the chance that 1-2 more people will be driving an EV because of the program. That's win-win in my eyes.
     
  10. patrick40363

    patrick40363 Member

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    Yes you would.

     
  11. jeffro01

    jeffro01 Active Member

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    I agree, I went off topic and I respect your opinion on the matter and as such will not continue to push my viewpoint any further.

    Thanks,
    Jeff
     
  12. AlMc

    AlMc 'Senior Moments' member

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    I, like many other here, live in a state with no EV incentives. While I have not refused to take the federal tax credit I would have purchased a Tesla without it.
     

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