Calderon Bills Making Electric Vehicles More Affordable for Low Income Families Passes Assembly Natural Resources, Revenue and Taxation Committees
SACRAMENTO, CA – Today Assembly Bills 1341 and 1259, two measures authored by Majority Leader Ian Calderon which make electric vehicles more affordable for low income families passed the Assembly Revenue and Taxation Committee and Assembly Natural Resources Committee, respectively. AB 1341 provides consumers a tax credit for the purchase of new electric vehicles (EVs) and a sales tax exemption for the purchase of used ones. AB 1259 would expand the Capital Access Loan Program to include the purchase of an electric vehicle (EV) by low- and middle-income consumers and families.
“Electric vehicles are simply not accessible to many working class families and cost is the primary reason,” stated Majority Leader Ian Calderon. ““AB 1341 complements current tax incentives with a portfolio of additional incentives for low-income individuals and employers to make EVs truly accessible to all Californians. Maintaining these incentives will also help California stay on track with its EV deployment and climate goals.”
Despite major advancements in the technology and the proliferation of new and more affordable purchase options, EVs currently only account for 2 to 3 percent of all new car sales in the state of California. In order for the state to fulfill its greenhouse gas (GHG) emission and air quality mandates for 2020 and 2030, as well as comply with its 2023 and 2025 EV deployment mandates, the state needs to continue incentivizing the purchase of EVs until the market matures and becomes self-sustaining. However, funding for the program has been unsustainable and mismatched with market demand, limiting its effectiveness. Moreover, due to multiple factors, including the higher cost of purchase, EVs are not yet fully accessible to all Californians.
AB 1341 provides consumers a tax credit for the purchase of new EVs, and a sales tax exemption for the purchase of used EVs. The measure would create a self-executing program that no longer must be administered by ARB and make the program more stable, sustaining market signals that will enable continued EV market growth. It would also help support the growing used EV market by making EVs more accessible to low-income families. AB 1341 is supported by the AutoAlliance, CALSTART, and Global Automakers.
“Many low and moderate-income consumers cannot take advantage of existing state and federal programs designed to increase access to clean vehicles because access to capital can be as big of a barrier as purchase price,” stated Majority Leader Calderon. “A statewide loan-loss reserve program could be a cost-effective way to increase access to both new and used electric vehicles, leveraging private capital and recycling state funds.”
The California Pollution Control Financing Authority Act establishes the California Pollution Control Financing Authority, with specified powers and duties, and authorizes the authority to approve financing for projects or pollution control facilities to prevent or reduce environmental pollution. The authority oversees the Capital Access Loan Program for small businesses to assist small businesses in financing the costs of complying with environmental mandates and the remediation of contamination on their properties.
AB 1259 would expand the Capital Access Loan Program to include the purchase of an electric vehicle by low- and middle-income consumers and families, as specified. It would allow the ARB to design the parameters of the program to help meet the climate and air goals of the State, including AB 32. It also grants the ARB the tools it needs to make low and no interest loans more affordable and more widely available to low and middle income consumers. AB 1259 is supported by the Coalition for Clean Air, Communities for a Better Environment, Environment California, the Greenlining Institute, and Natural Resources Defense Council.
Contact: Lerna Shirinian (562) 692-5858