California is doing everything that it can promote electric vehicles.
The Golden State is currently the epicenter of the adoption of this kind of technology. Jalopnik.com reports that the state has a new program that offers residents up to $27,000 to buy an electric vehicle. Still, many residents say that the requirements should be shorter and more manageable to determine how to get to the vehicles they might want to own.
The people cheering on EV adoption will love that the number of EVs sold in California went up 17 percent in 2022 compared to the previous year. However, EVs still need to be more expensive for many people to access them. These vehicles remain some of the most expensive on the market.
The Sacramento Bee reports that California will give low-income residents up to $27,000 to purchase an electric vehicle, but they have to jump through many hoops to gain access to the money in the first place.
This is direct assistance to the low-income residents of California, but the regulatory hurdles that one must go through mean that many still need to take advantage of the program. Most can take advantage of this opportunity via a federal tax credit. This allows residents to use that credit on an EV if their income is less than $150,000 for a new EV and less than $75,000 for a used EV.
Many people think that this means money can be applied directly toward a new electric vehicle, but that isn't the case. It is just a tax credit you can use if you have a tax liability. Therefore, you will only get a break if you owe taxes at the end of the year. Many people do NOT owe taxes at the end of the year and can claim back some of the money they paid into the system all year. When you consider that fact, it is evident that only a few people will truly gain the full benefits that are intended to be offered by this program.
This is so important to recognize when talking about the fact that this program is promoted as a great program to help people gain access to an electric vehicle. In practice, it doesn't work that way.
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