California’s new Zero-Emission and Plug-in Hybrid Electric Vehicle (Clean Vehicle) Rebate Project is under way with the selection of the California Center for Sustainable Energy as the Project Administrator.

The Project is set to launch on March 15, 2010.  Only qualifying vehicles purchased on or after March 15 will be eligible for rebates.

Check back here soon for details on eligible vehicles, rebate amounts, online applications and supporting documents!

The Clean Vehicle Rebate Project ( CVRP) is funded by the California Environmental Protection Agency’s Air Resources Board ( ARB) and administered statewide by the California Center for Sustainable Energy ( CCSE). A total of $4.1 million was appropriated from the ARB’s Air Quality Improvement Program for the project to promote the use and production of zero-emission vehicles. The program was created by Assembly Bill 118 that was signed by Governor Schwarzenegger in October 2007 and that funds air quality improvement projects through 2015.

This project benefits the citizens of California by providing immediate air pollution emission reductions and stimulating development and deployment of the next generation of zero-emission and plug-in hybrid light-duty and commercial vehicles.

Rebates of up to $5,000 per light-duty vehicle will be available for individuals and business owners who purchase or lease new eligible zero-emission or plug-in vehicles until the funding runs out. Certain zero-emission commercial vehicles are eligible for rebates up to $20,000. Vehicles must be purchased or leased after official launch of the program on March 15, 2010.

Eligibility

• Zero-emission and plug-in hybrid vehicles
• Cars, trucks, commercial medium- and heavy-duty vehicles, motorcycles, neighborhood electric vehicles
• Must be new
• Must meet certain qualifying requirements

Applicant and vehicle eligibility requirements also will be specified in a Clean Vehicle Rebate Project Implementation Manual available from the ARB at their website.

Clean Vehicle Rebate Project funding is limited. It is anticipated that funds will be insufficient to provide rebates to all eligible vehicle purchasers over the duration of the project. Rebates will be provided on a first-come, first-served basis.

The Clean Vehicle Rebate Project is a follow-up to the Fueling Alternatives Rebate program, also funded by the Air Resources Board and administered by CCSE.  The Fueling Alternatives program ran from April 2008 until May 2009 and provided rebates of up to $5,000 for consumers who purchased or leased eligible natural gas , electric, and fuel cell vehicles. A summary of the program, including a list of vehicles rebated, can be found here.

For further information on clean and fuel efficient cars, visit www.DriveClean.ca.gov.

Federal Tax Incentives: Tax credits for electric-drive vehicles range from between $2,500 to $7,500, with factors such as battery capacity determining how much owners are eligible to receive. Cars like the Nissan Leaf, due for release in December 2010, would be eligible for the maximum credit of $7,500. To meet the tax incentive's standards, an electric-drive vehicle must have a battery with a minimum capacity of 5 kilowatt-hours, with an additional $417 of tax credit added for every kilowatt-hour thereafter, which is how the Leaf is eligible for the maximum $7,500 limit with its 24 kWh battery pack.