Can some at Intuit please answer this question about the Federal taxability of this state rebate check? Those incentives bring the effective base price to just $32,995. PG&E Clean Fuel Rebate. Owning an EV won't have tax incentives forever. Confirm that you are eligible. I look forward to feedback from Intuit. According to the Clean Vehicle Rebate Project that administers the California rebate, “the CVRP rebate is not taxable income and the Administrator does not issue a 1099 for your rebate.”. But once you take into account California’s $2,000 electric vehicle incentive credit and a federal tax credit of $7,500, that leaves you at a total cost of $7,999 (if you live in California). As for plug-in hybrid electric vehicles (PHEVs), the credit ranges from $2,500 cars like Prius plug-in to $5,335 for the Porsche Cayenne S E-Hybrid and $7,500 for the Chevrolet Volt and BMW i3 with range extender. To receive and keep the rebate you have to purchase the vehicle and then maintain ownership of the vehicle for 30 consecutive months and provide proof of both to the CVRP. It is a cash rebate that must be applied for within 90 days of the vehicle’s purchase. A rebate is normally excluded from gross income when it is treated as a reduction in the purchase price of a product or service. In a state like California which has 10% sales tax, that's an additional $300! Please see What Fees Should You Pay? CVRP Eligible Vehicles. Story continues below advertisement I have been using Turbotax for my personal tax returns for over 20 years. Any applications submitted after this time will not be eligible. CVRP offers vehicle rebates on a first-come, first-served basis and helps get the cleanest vehicles on the road in California by providing consumer rebates to reduce the initial cost of advanced technologies. Carmelo Amato. Can we please get some clarification on Rul 76-96 from above? The California electric vehicle rebates are taxable on both the federal return and the state of California return. Apply for the CA Clean Vehicle Rebate (CVRP) California residents can apply for a $2,000 rebate on pure electric battery cars, $1,000 for plug-in electric hybrid vehicles and $4,500 for fuel cell electric vehicles with the CA Clean Vehicle Rebate. See complete ... smart Electric Fortwo Cabriolet. Yes. Please follow the directions below to enter your rebate income into the TurboTax. Here’s a summary of electric vehicle incentives by state. California Electric Car Rebates and Incentives. This question relates to my future 2020 tax return. This is true because of IRC section 61: Gross income means all income from whatever source derived unless specifically excluded by law. Electric car VED. The original owner of the car is the only one qualified to receive the tax rebate. Should I buy the car or turn it in? Enter the description and amount. And where in TurboTax Premier do I add this rebate? The California electric vehicle rebates are t... Is the California electric vehicle rebate taxable income? Yes. Apply Now. I received a $1500 rebate the year in Feb 2020 for a Nov. 2019 purchase of a plug-in, hybrid electric vehicle. In addition to a federal tax credit worth up to $7,500, the State of California is offering a $5,000 rebate for a pure electric car, and $3,000 for a plug-in hybrid. Fuel-cell electric vehicles exceeding $60,000 will qualify for a $4,500 credit (or $7,000 for low/moderate income buyers) The long-term picture of California EV rebates is subject to change. Since 2010, CVRP has helped put over 350,000 clean vehicles on California roads. This guide has all of the rebates and incentives offered to Californians for the purchase of an electric vehicle in 2020, or a residential EV charger. 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