Taxpayers are reminded that beginning January 1, 2023, through December 31, 2027, a new partial sales and use tax exemption is provided on qualifying zero or near-zero emission motor vehicles purchased or leased by qualified buyers.

Clean Cars 4 All Program
Eligibility for the exemption is based on:

the buyer’s household income;

the buyer’s residence; and

whether the vehicle was leased or purchased.

The California Air Resources Board (CARB), in association with local air districts, administers the Clean Cars 4 All (CC4A) program.

The program is designed to provide incentives to lower-income California drivers to replace their older, high-polluting motor vehicles with zero emission vehicles. The current CC4A program provides qualified buyers with grants they can use towards the purchase or lease of an eligible vehicle. Qualified buyers are those who receive an award letter, or other approval documentation, issued by the local air district in which they live that has implemented the CC4A program. Special Notice L-878, California Department of Tax and Fee Administration, December 2022