🌴 California EV Tax Credits: 2025 Guide to Savings
With California leading the charge toward cleaner transportation, California EV tax credits have become a hot topic for residents looking to go electric. While the state-level rebate program has recently changed, there are still plenty of incentives available to lower the cost of owning an electric vehicle in the Golden State.
In this guide, we break down current programs, eligibility, and how to maximize your EV savings in 2025.
⚠️ Are California EV Tax Credits Still Available?
The popular Clean Vehicle Rebate Project (CVRP) officially closed on November 8, 2023, halting new applications for California’s state-funded EV rebate. However, Californians are not out of luck. There are still three key ways to benefit from EV incentives in 2025:
- Federal EV Tax Credit (up to $7,500 for new vehicles)
- Utility-Based EV Rebates (up to $4,000 for used vehicles)
- Potential New State Programs proposed for post-2025
Let’s explore each one.
💰 Federal EV Tax Credit (2025)
While California’s direct state rebate has paused, residents can still claim the federal EV tax credit of up to $7,500 on qualifying new electric vehicles or plug-in hybrids.
Eligibility Requirements:
- The vehicle must meet battery sourcing and final assembly rules.
- MSRP limits apply: $55,000 for sedans, $80,000 for SUVs/trucks.
- Income limits: $150,000 (single), $225,000 (head of household), $300,000 (joint filers).
✅ Tip: When purchasing a new EV, ask if the dealer offers the point-of-sale transfer, which lets you apply the tax credit instantly to your down payment.
🔌 Utility-Based California EV Rebates
While California EV tax credits from the state may be paused, local utility providers continue to offer significant rebates—especially for used EVs and low-to-moderate income households.
⚡ PG&E (Pacific Gas & Electric)
- $1,000 standard rebate for used EVs
- Up to $4,000 for income-qualified customers
👉 Learn more at evrebates.pge.com
⚡ LADWP (Los Angeles Dept. of Water & Power)
- Offers $2,500 rebate on used EVs
- Free Level 2 EV charger with installation support
⚡ Other Utility Rebates
Cities like Sacramento, Pasadena, Riverside, and Santa Clara offer EV rebates, charger discounts, or time-of-use (TOU) plans that lower charging costs.
⚡ California Cities With EV Rebates & Incentives (Partial List)
1. Pasadena
- Pasadena Water & Power (PWP) offers:
- $250 rebate on eligible used or new EV purchase or lease
- +$250 bonus for purchases made at a Pasadena auto dealer
- +$1,000 additional rebate for income-qualified program enrollees (up to $1,500 total)
2. Anaheim
- Anaheim Public Utilities offers up to $1,000 rebate for networked Level 2 home charger installation (requires TOU plan)
3. Azusa
- Azusa Light & Water provides a $150 rebate for residential ENERGY STAR Level 2 charger installation
4. Burbank
- Burbank Water & Power gives:
- Up to $1,250 rebate ($500 for charger, $750 panel upgrade)
- Income-qualified residents in disadvantaged communities qualify for up to $1,500 total
5. Glendale
- Glendale Water & Power offers up to $599 rebate for home charger plus additional panel upgrade incentives
6. Lodi
- Lodi Electric supplies up to $750 rebate for residential Level 2 charger purchases and installations
7. Sacramento
- Sacramento Municipal Utility District (SMUD) offers up to $750 rebate toward EV charging equipment and installation for customers
8. Roseville
- Roseville Electric provides up to $400 rebate for Level 2 charger installs, up to 50% of hardware cost
9. Riverside
- Riverside Public Utilities offers $500 rebate for residential Level 2 charger installations
10. Vernon
- Vernon Public Utilities offers up to $2,500 rebate for Wi‑Fi enabled Level 2 home charger
11. Truckee
- Truckee Donner Public Utilities provides $600 rebate for Level 2 home charger installation
12. Ukiah
- City of Ukiah Electric Utilities offers $500 rebate for a certified Level 2 charger installation
13. Colton
- Colton Electric Utility rebates:
- $1,000 for used EV purchases
- $1,500 if participating in low-income programs
14. El Dorado County
- El Dorado County Air Quality Management District offers a $599 rebate on eligible EV purchase/lease
Addition cities in California: Bakersfield, Berkeley, Chula Vista, Concord, Corona, Fremont, Fresno, Huntington Beach, Irvine, Long Beach, Los Angeles, Oakland, San Diego, San Francisco, San Jose, Santa Monica
🔄 Future of California EV Tax Credits
In 2024, California officials proposed reviving state EV incentives through the Greenhouse Gas Reduction Fund. If approved, this new rebate program may start in 2026, offering up to $7,500 for eligible buyers. However, early drafts suggest potential caps based on:
- Vehicle market share (possibly excluding Tesla)
- Household income
- Type of EV purchased (new vs. used)
Stay updated by subscribing to your local air board or CARB notifications.
🛠️ Bonus Rebates: EV Charger Incentives
If you’re installing a home charger, you could be eligible for:
- $500–$1,500 rebates from utilities (e.g., SCE, SMUD, SDG&E)
- Tax credits on charger purchase and installation
- Free equipment from select programs (e.g., LADWP Level 2 charger)
💸 Monetization Tip: Link to Amazon affiliate products for Level 2 chargers, smart plugs, and home energy monitors.
✅ Quick Reference: 2025 EV Incentive Summary
| Incentive Source | Max Value | Type of Buyer | Notes |
|---|---|---|---|
| Federal Tax Credit | Up to $7,500 | New EV Buyers | Expires Sept 30, 2025 |
| PG&E Rebate | Up to $4,000 | Used EV, Low-Income | Based on eligibility |
| LADWP Rebate | Up to $2,500 | Used EV Buyers | Includes free home charger |
| State Incentive | Suspended | N/A | May return after 2025 |
🚗 Final Thoughts: Should You Buy an EV in California in 2025?
Even without a state-level rebate, California EV tax credits and incentives still offer substantial value when you combine:
- Federal tax savings
- Local utility cash-back
- Reduced fueling costs from TOU electricity plans
If you’re ready to go electric, there’s no better time—especially before the federal credit expires in September 2025. Be sure to act quickly, check eligibility, and stack incentives where possible to drive home serious savings.
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