Rebates and Tax Credits

Generous rebates and tax credits are available to reduce the cost of electrification
for your home and transportation. Click on a tab below to learn more.

Solar Energy, Heat Pump Water Heaters, Electrical Work and More!

FEDERAL

Income Tax Credits

The Federal government offers a 30% tax credit for solar photovoltaic systems and batteries over 3 kWh in size. You can get additional tax credits for an electrical panel upgrade, a heat pump water heater, a heat pump HVAC system, home energy audits, and weatherization. There are no income caps associated with these tax credits.

DOE: Clean Energy Tax Credits
IRS: Home Energy Tax Credits

CALIFORNIA

Rebates

This California program provides an instant rebates of as much as $900 for a heat pump water heater and $75 for a smart thermostat to residential customers of PG&E and other investor-owned utilities.

Be sure to plan ahead and get a rebate coupon before making the purchase of a qualified product at a participating retailer.

Golden State Rebates

SANTA CRUZ COUNTY

Rebates

Central Coast Community Energy (3C Energy) offers a $5,000 rebate to homeowners who build an all-electric ADU (accessory dwelling unit). 3C Energy also pays rebates to contractors who upgrade electrical panels, install heat pump HVAC systems, and heat pump water heaters. Many contractors choose to pass the rebate through to their customer.

Rebate for All-Electric ADU
Electrify Your Home Rebates

PALO ALTO UTILITIES

Concierge Service or Rebate

The City of Palo Alto is helping residents switch from gas to heat pump electric water heaters by offering the choice of a $2,300 rebate or a “concierge service to handle everything at a discounted install price”.

Electric Water Heater FAQs

FEDERAL

IRA Rebates

Starting in 2024, the Inflation Reduction Act (IRA) will provide generous rebates for electrical wiring and panel upgrades, heat pump water heaters, heat pump HVAC systems, heat pump clothes dryers, induction ranges and cooktops, and weatherization homes. There's a cap of $14,000 in combined rebates per household.

IRA Calculator for Rebates & Tax Credits

Income qualifications apply: rebates cover 100% of costs for households with gross incomes below 80% of Area Median Income (AMI) for their county and 50% of the cost for households with incomes between 80% and 150% of the AMI. Households that earn more than 150% of the AMI can get tax credits today for many of the same electrification investments.

AMI Levels for Santa Clara County
AMI Levels for Santa Cruz County

The California Energy Commission is setting up an organization to administer the rebates promised by the IRA. Unfortunately, investments you make today won’t qualify for these rebates. The good news is when California has everything in place you’ll get point-of-sale rebates. That’s right, instant rebates!

IRA Residential Energy Rebate
Programs in California

SF BAY AREA

Rebates & Financing

BAYREN is a California Regional Energy Network serving Santa Clara County and eight other counties in the San Francisco Bay area. It offers rebates for electrification and energy efficiency investments to homeowners and multi-family property owners.

BAYREN Rebates & Financing

SANTA CLARA COUNTY

Rebates

SVCE offers its customers rebates to replace gas furnaces and water heaters with heat pump equivalents. You can get additional rebates for an EV charger, an electric panel upgrade, and pre-wiring for future electric appliances. Income qualified customers receive an additional $1,000 per rebate.

SVCE Rebates

Electric Vehicles, Motorcycles and Bikes

FEDERAL

Income Tax Credits

The Federal government offers a tax credit of up to $7,500 for a new EV or PHEV and $4,000 for a used vehicle. There’s also a tax credit of up to $1,000 to cover the cost of an EV charger plus installation. The tax credit for a new vehicle depends on the brand and model. Income limits apply to these credits.

Which EVs and PHEVs Qualify?

Clean Vehicle Tax Credits
EV Charger Tax Credit

Beginning on January 1, 2024, you can transfer your EV/PHEV tax credit to a participating dealership and get a price reduction at the time of purchase instead of waiting until tax time to claim the credit.

How to Get Your Tax Credit

at the Time of Purchase

REGIONAL

Rebates

PG&E offers rebates of between $1,000 and $4,000 for pre-owned electric vehicles. Whether you qualify and the size of the rebate depends on your gross income.

Pre-Owned EV Rebate Program

SANTA CLARA COUNTY

Rebates

Income-qualified Santa Clara residents who buy a pre-owned electric vehicle may qualify for a rebate of up to $3,500.

Pre-Owned EV Rebate Program

CALIFORNIA

Rebates

California offers rebates for new battery electric vehicles, fuel cell electric vehicles, and electric motorcycles. Rebates range from $750 for a new electric motorcycle to as much as $7,500 for a new EV. The rebate size depends on what you purchase and your income relative to the Federal Poverty Level. Be advised that funding comes and goes. So, you may have to wait a few months and apply quickly when new funding is in place.

CVRP Eligible Vehicles

SANTA CRUZ COUNTY

Rebates

Central Coast Community Energy (3C Energy) offers rebates to its customers for new and used EVs, hybrids, and electric motorcycles as well as EV chargers and EV readiness (electrical wiring). Rebates are higher for income-qualified applicants.

Electrify Your Ride Rebates

CALIFORNIA

E-Bike Incentive

E-bike incentive vouchers will soon be available for income-qualified California residents. The voucher provides a point-of-purchase incentive of up to $2,000 on bikes at participating retailers.

E-Bike Incentive Project

SANTA CRUZ COUNTY

E-Bike Incentive

The Monterey Bay Air Resources District (MBARD) has an incentive program providing up to $500 for income-qualified residents to purchase a new e-bike at a participating retailer.

E-Bike Incentive Program

Income Limits and Rebate Multipliers

Your income may determine whether you qualify for a financial incentive as well as how much you can get. The Federal Government, for example, has income caps on IRA rebates and some tax credits. People with low or moderate incomes can get a larger rebate than normal in some state and local programs. Read on to learn how income is measured and which programs consider it.

Area Median Income

Area median income (AMI) is defined as the midpoint of income distribution in a specific area. It's calculated on an annual basis by the Department of Housing and Urban Development (HUD). Your AMI number will be determined by where you live and how many people are in your household.

The Inflation Reduction Act (IRA) of 2022 uses AMI to determine whether you can get a rebate and how much for various investments. A rebate will cover 100% of costs up to the rebate maximum for households with incomes below 80% of the AMI. Households with incomes between 80% and 150% of the AMI will get a rebate covering 50% of costs up to the rebate maximum.

Visit one of these web pages to determine your area median income:

AMI Levels for Santa Cruz County

AMI Levels for Santa Clara County

AMI for Other Locations in USA

Federal Poverty Level

The national Federal poverty level (FPL) is used by the U.S. Government to determine eligibility for various programs. See this web page for a table with FPL income limits for families of various sizes.

Your income relative to the FPL will determine whether you qualify for the California E-Bike Incentive Program. In contrast, 3C Energy uses the FPL to award larger than normal rebates to low-income and moderate-income applicants in its Electrify Your Ride program. The California Clean Vehicle Rebate Program (CVRP) also uses the FPL to award larger rebates.

Gross Income

Gross income is your total income before adjustments, deductions, and taxes. PG&E uses gross income to determine whether someone qualifies for a pre-owned electric vehicle rebate.

Adjusted Gross Income

The Internal Revenue Service defines adjusted gross income (AGI) as gross income minus adjustments to income. AGI is Line 11 on the 1040 Individual Tax Return. It will be used to determine whether you qualify for Federal tax credits for new and used electric vehicles.

Financial Assistance Programs

Some organizations that offer rebates use participation in one or more financial assistance programs to verify low income status.

Silicon Valley Clean Energy (SVCE) adds $1,000 to each rebate in its FutureFit Home program for households that participate in the CARE (California Alternate Rates for Energy) or FERA (Family Electric Rate Assistance) programs.

Silicon Valley Power (City of Santa Clara) asks applicants to its pre-owned EV rebate whether they participate in the FRAP (Financial Rate Assistance Program) or the HEAP (Home Energy Assistance Program).

The Monterey Bay Air Resources Board (MBARD) has an e-bike incentive program in which applicants are asked whether they participate in any of nine different financial assistance programs.

Rebates and Tax Credits

Solar Energy, Heat Pump Water Heaters, Electrical Work and More!

FEDERAL

CALIFORNIA

SANTA CRUZ COUNTY

PALO ALTO UTILITIES

FEDERAL

SF BAY AREA

SANTA CLARA COUNTY

Serving Santa Cruz County and the South Bay Area

Serving Santa Cruz County
and the South Bay Area