Proposed funding tripled for next fiscal year
billion million in rebate funds have been exhausted for the California 2010-2011 fiscal year California Air Resources Board (ARB) Clean Vehicle Rebate Project. The California fiscal year ends on June 30.
California LEAF owners up to this point in time were eligible for up to $12,500 in combined incentives – a $7,500 Federal Income Tax credit, and a $5,000 California Clean Vehicle Rebate. The ARB is proposing a trebling of the rebate pool to $15 million for the upcoming fiscal year from the $5 million offered during the 2010-2011 fiscal year. Due to the demand for electric vehicles and expected increasing supply over the upcoming year, the rebate amount is proposed to be reduced by half to extend the benefit to more consumers. The combined Federal and State incentives would still amount to a potential $10,000 reduction in the purchase or lease price of a Nissan LEAF or certain other electric vehicles, such as the Ford Focus EV.
While certainly there will be some disappointed LEAF owners hoping to make the cut prior to the 2011 funds running out, we suspect that a significant number of LEAF buyers will stick with their intent to have an electric car in their garage. That said, we also suspect that should vehicles become available through a change of plans due to the loss of $2,500 in California incentive money, those vehicles will not sit on Nissan lots for long.