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California Cuts Electric-Car Rebates, Drops Luxury Models

Publication: San Francisco Chronicle

California’s rebate program to coax more drivers to buy electric vehicles just got less generous, especially for those looking to spend on a luxury model.

Effective Tuesday, state regulators have stopped offering rebates for buyers of electric cars or plug-in hybrid vehicles that cost more than $60,000 — a move that will make buyers of high-end Tesla models dig deeper into their pockets.

The state Air Resources Board, the agency that regulates the program, has also reduced the standard rebate by $500 per vehicle, from $2,500 to $2,000 for all-electric cars, and eliminated rebates for plug-in hybrid cars with an electric-battery range of less than 35 miles.

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Assemblyman Phil Ting, D-San Francisco, a vocal advocate for electric cars in the Legislature, criticized the changes. He said the new rules create confusion for buyers.

“The rebate program could be killed by death by 1,000 bureaucratic memos,” Ting told The Chronicle.

Ting sponsored a bill this year that could have tripled rebates, but it died in committee. He said the state should ramp up incentives and decrease them over time with a specific end date, so people have incentive to buy now.

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