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Discussion Starter #1
I've just realized that I have no idea how to apply for it and the Bolt EV's release is approaching. Just thought everyone can share their experience or knowledge when it comes to this as the tax credit is a large part of purchasing an EV.

So far, California's credits are proportional to your income. We know that but how do you apply for it?

I'm In Canada so the whole process could be different from the states.

The initial post that made me think of this:
If you're including the $7500 Federal Incentive, it is a Tax Credit, not a rebate. Note that some people may not have enough tax liability to take advantage of the entire credit (and it doesn't carry over).
Timing also plays an issue, a rebate is usually mailed as a check (California) or deducted from the purchase price. The Tax Credit is available when you file your taxes, which could be a year (or more) from when you take delivery of the car.
 

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California rebate- Apply here online:
https://cleanvehiclerebate.org/eng
US Federal Tax Credit: Form 8936 (If you lease, the leasing company is the purchaser and gets the credit)

Canada:
In BC, you must purchase from an authorized dealer and they apply and discount the car by the incentive amount
https://www.cevforbc.ca/
Ontario has a rebate program (you do the application):
http://www.mto.gov.on.ca/english/vehicles/electric/electric-vehicle-incentive-program.shtml
Plus you can get up to $1000 for charging equipment
Quebec:
http://vehiculeselectriques.gouv.qc.ca/english/index.asp
Plus up to $600 for charging equipment
 

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I hate how it's tied to income and going forward we're going to see that be the case with many other things, those with more money not getting the same benefits.

Also at one point I think a few states were giving $3500 back, that's on top of the federal credit, something everyone should look into even if it's not widely advertised
 

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I hate how it's tied to income and going forward we're going to see that be the case with many other things, those with more money not getting the same benefits.
California? The income cap for the CARB rebate is $500K (filing jointly). I'm OK with people making that much not getting the $2500. As a benefit, they boosted the rebate to $4,000 for lower income buyers (who do need more help paying the increased cost of EV's).
If I lived in CA and my tax money was going for a rebate to someone making a couple million a year, I'd be a bit P.O'd.
The lack of rebate will not affect the number of EV's purchased by buyers in very high income brackets, but the additional assistance at the low end will certainly get more people into EV's. Which is the whole point of the program to begin with. If multi-millionaires are getting rebates on their $140K Model X, it's a good way to get rebate programs killed due to outrage by the general public.
 

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Discussion Starter #5
Seems like the incentives are based on income in the U.S. and in Canada it's based on how much the car itself costs (maximum $77k). Not sure which system is better at the moment.
 

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I assume the tax credits that the leasing company will be receiving is going to reflect on the buyer's monthly payments?
Yes (Usually- but not always), but it can happen in a few different ways.

The most common is to use it as a "Capitalized Cost Reduction" which effectively lowers the price of the car (and hence your payments). You'll see the full $7500 reflected as such on the lease documents.

You may also have part of it used to provide either:
A) a lower money factor (Interest rate)
and/or
B) An artificially high residual value (anything over 40% on most EV's is highly optimistic). Number of miles per year is a big factor in residual - a rough estimate is reduce the residual by 1% for every additional 1500 miles per year on a 3 year lease.

If it is used for either of those, it won't be obvious in the lease documentation.

Leases are trickier to analyze than a purchase contract. You'll see terms like "Rent" in the documentation. Something important to remember when leasing a car:
A down payment (big or small) does not affect the overall amount you will pay for a lease. You will pay the same in rent charges and depreciated value. If you make a down payment, all you are doing is prepaying some the lease. ALWAYS work for a $0 down lease. If something happens to the car before the lease is up, you will never get that down payment back. GAP coverage will protect the leasing company, but you will not get a check if the car is totaled in an accident (even if it is one minute after leaving the dealer).

Put the "down payment" in a separate (interest bearing) account and use it to make the lease payments. If you live in a state like CA that also provides a rebate, add that to the account also and you'll have months of "Free" car payments
 

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I'm In Canada so the whole process could be different from the states.
It's different than the US and different between the provinces.

There is no national EV incentive program in Canada. Only BC, Quebec and Ontario offer incentives.

It is actually a rebate here, rather than a tax credit. Everyone gets the same rebate regardless of their income tax situation.

In BC the dealer has to apply for the rebate and it gets taken off the price of the car. You can't apply for it yourself after taking delivery.

In Ontario the you can apply for and assign the rebate to the dealer, so it also gets taken off the price of the car, like a down payment. Optionally you can apply for it yourself afterward.

The rebate is based on the battery size and value of the car.
 
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