SB 1382 (Ch. 22-375) enacts a temporary sales and use tax exemption for low-income taxpayers who purchase a clean energy vehicle through the existing Clean Cars for All program.1 Eligibility for the exemption is based on the buyer’s household income, where they reside, and the vehicle leased or purchased. The partial exemption is available January 1, 2023, through December 31, 2027.
Local air districts that have implemented the CC4A program will issue an award letter, or other approval documentation, to qualified buyers. Each participating air district has information on buyer eligibility available at:
ww2.arb.ca.gov/cc4a-implementing-air-districts
Eligible vehicles sold by dealers to qualified buyers are subject to sales tax at a reduced rate of the current tax rate minus the 3.9375% partial exemption. The qualified buyer will provide the dealer with a partial exemption certificate to document the sale.
The CDTFA will make available on its website new Form 230-ZEV, Partial Exemption – Zero Emission Vehicle, by January 1, 2023.
1 CDTFA Special Notice L-878 (December 2022), available at: www.cdtfa.ca.gov/formspubs/L878.pdf