9/2/2014

California Seeks to End EV Rebates for Wealthy Buyers

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Calif. Gov. Jerry Brown is expected to sign a bill that sets an income ceiling for electric-car buyers eligible to receive state incentives for buying an electric vehicle, Automotive News reports.

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Calif. Gov. Jerry Brown is expected to sign a bill that sets an income ceiling for electric-car buyers eligible to receive state incentives for buying an electric vehicle, Automotive News reports.

The state's current program offers a $2,500 rebate for all-electric purchase, including the $72,000 Tesla Model S. Critics have complained that consumers wealthy enough to buy such a car would probably buy one without a rebate anyway.

The bill passed on Thursday by the California legislature would cut off rebates for wealthy EV buyers. It also would offer incentives for low-income car owners who scrap an old car and switch to public transit or a shared-ride scheme.

AN cites Tesla's head of business development who agrees with the terms of the bill.