Interested in switching to an EV? Electric vehicles have big benefits for the climate and for public health, as they have no tailpipe pollution. As automakers continue to roll out new models, consumers have more choices than ever to find a zero-emission vehicle that fits their lifestyle and budget. Additionally, electric vehicles are becoming more affordable through incentives available at the local, state and federal level.
One example of a local incentive program that aims to make clean air vehicles more accessible and equitable is the “Clean Cars for All” program managed by the Bay Area Air Quality Management District in California. We decided to take a closer look at the “Clean Cars for All” program to discover how you can take advantage of zero-emission vehicle incentives and uncover more benefits of driving electric.
Why Drive Electric?
Moving away from polluting, gasoline- and diesel-powered vehicles and switching to cleaner mobility options is crucial to combatting climate change and cleaning up the nation’s air. The transportation sector is a significant source of air and climate pollution in the United States and more EVs on the road would help reduce this harmful pollution.
This is important because air quality directly affects everyone’s health, so a nationwide transition to zero-emission vehicles would yield massive health benefits. The American Lung Association’s “Driving to Clean Air” report found that a widespread transition to 100% zero-emission passenger vehicles, powered by clean electricity, would result in up to 89,300 avoided premature deaths, 2.2 million avoided asthma attacks and 10.7 million fewer lost workdays by 2050.
In addition to the environmental and health benefits, they are appealing due to cost savings on fuel, lower maintenance costs and a better overall driving experience as they are quiet and offer improved acceleration.
What is “Clean Cars for All”?
This past spring, the Bay Area Air Quality Management District, the regional agency responsible for protecting air quality in the nine-county San Francisco Bay Area, relaunched its “Clean Cars for All” program and expanded the program to all nine counties. The program offers grants to qualified residents to purchase or lease an electric vehicle and was established in 2019 to ensure a wide range of affordable clean air vehicle options for residents. “Clean Cars for All” is part of California Climate Investments, a statewide initiative that puts billions of dollars to work to reduce greenhouse gas emissions, strengthen the economy and improve public health and the environment – particularly in disadvantaged communities.
The program offers grants of up to $12,000 to income-qualified residents to retire their older cars and replace them with clean transportation options including a new or used hybrid, plug-in hybrid, electric or fuel cell vehicle. For residents interested in switching to a clean mobility option other than a car, program participants can swap their vehicle for a public transit card or an e-bike with bike accessories. On top of this, residents that purchase an electric vehicle or plug-in hybrid through the program can receive up to $2,000 towards the purchase and installation of a level 2 home charge, up to $1,000 towards the purchase of a portable level 2 charger, or up to $1,000 for an EV charge card to pay for public charging.
Since the program’s inception, “Clean Cars for All” has awarded $41.7 million to more than 5,200 residents. If you live in the Bay Area and want to see if you may be eligible to apply, visit the Air District’s website for more information.
How to Find Incentives for New and Used EVs
While the “Clean Cars for All” program is limited to qualified Bay Area residents, there is a wide array of EV incentives available for California and non-California residents alike. For California residents, DriveClean.ca.gov, a website run by the California Air Resources Board, allows users to input their ZIP code to find a range of incentives to offset the costs of a clean air vehicle as well as for home charging.
For anyone in and outside of California looking to see what incentives they may qualify for, you can go to ElectricForAll.org and enter your ZIP code to view the incentives available based on your location. ElectricForAll.org also allows you to see if your utility company offers incentives for purchasing a vehicle or for home charging.
At the federal level, the Inflation Reduction Act (IRA), which was passed by Congress and signed into law in 2022, created the first federal tax credit for electric vehicles. Through the IRA, individuals under a certain income threshold can receive a tax credit of up to $7,500 to purchase a new, qualified plug-in EV or fuel cell electric vehicle. And, starting this year, consumers have the option to receive the credit from an eligible dealer at point of sale instead of receiving it when they file their taxes the following year. For those interested in purchasing a used EV, there is also a tax credit available for qualified used zero-emission vehicles of up to $4,000.
Another point to consider is fewer cars qualify for the benefit this year due to updated battery manufacturing changes. To see if the vehicle you’d like to purchase is eligible for the clean vehicle credit, you can find a list at fueleconomy.gov. To read more about the incentive eligibility requirements and learn about the vehicles that qualify, visit www.irs.gov/clean-vehicle-tax-credits.
Finally, it’s important to note federal EV tax credits can be stacked with other state and local incentives, which can really help bring down the cost of the vehicle.
To learn more about the benefits of driving an EV, check out our previous Each Breath blog which addresses frequently asked questions about EVs. You can also learn more about the EV’s benefits from our many electric vehicle reports, available to you at Lung.org/EV.
Blog last updated: September 30, 2024
