California Launches “Plus-Up” Project to Make Electric Cars More Affordable to Low-Income Families

Tue, 7/10/2018 - 6:03 pm by Kirsten Rincon

Given that electric cars are significantly more expensive than their gasoline-powered counterparts, it’s no wonder that it’s usually the wealthier consumers who buy EVs, while lower-income families continue to stick to conventional vehicles. But, California, the state that leads the nation in adoption of electric vehicles, intends to change that and make these green vehicles more accessible to the mass market, introducing a new program that will make them more affordable to those who don’t have the financial resources that are needed to buy one.

The new incentive program, called “Plus-Up”, was recently introduced by the state of California as part of the Charge Ahead California initiative, which aims to put 1 million electric vehicles on the road by 2023. The pilot project targets lower-income families living in one of the two areas in California that are affected by air pollution the most: the South Coast Air Quality Management District (covering some of Greater Los Angeles) or the San Joaquin Valley Air Pollution Control District.

Those who earn less than 225% of the federal poverty level are considered to be low-income, and they are eligible to receive up to $12,000 towards the purchase of an electric car, if they decide to scrap their old gasoline-powered car. $2,500 of that amount has to be spent on a charging unit. Those who decide to buy a hybrid with a 35-mpg fuel economy will receive $7,000, and low-income households that purchase a hybrid rated at 20-mpg or more are eligible for a $6,500 payment.

In addition to low-income families, California also allows middle-income families to turn in their used gasoline-powered cars and buy an electric car through this program. They are defined as those who earn between 226% and 300% of the federal poverty limit, and can receive $5,000 for a 35-mpg hybrid, $7,500 plus $1,500 for a plug-in hybrid, or $7,500 plus $2,500 for an all-electric car. Lastly, and perhaps a bit surprisingly, above-moderate income families (earning between 301% and 400% of the federal poverty limit), qualify for this program, as well. The state will award them $5,500 plus $1,500 for a plug-in hybrid and $5,500 plus $2,500 for an electric car.

One of the greatest things about the program is that it does not apply exclusively to new vehicles, but includes used cars, as well, provided that they are not older than 8 years. And what’s more, it provides financial incentives to those who do not intend to buy an electric car, at all, but are willing to scrap their conventional cars and switch to greener modes of transportation, such as public transport. Depending on what they earn, they can receive between $2,500 and $4,500 in public transit passes.

Considering that it aims to make clean cars more accessible to those who can not afford them, the Plus Up program could have a great contribution to California’s efforts for improving air quality in some of the most-polluted areas in the state.