⚠️ This federal credit ended September 30, 2025. The One Big Beautiful Bill Act (signed July 4, 2025) repealed the Used Clean Vehicle Tax Credit (IRS Section 25E). No federal point-of-sale discount is available on used EV purchases after that date. [Source: irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d (accessed 2026-05-17)]
Last verified 2026-05-17
What replaced the $4,000 federal used EV credit in California
You can still get $4,000 or more off a used EV — but through California programs, not the IRS. Two programs do the heavy lifting:
1. PG&E Pre-Owned EV Rebate — up to $4,000
If you're a PG&E residential electric customer and you buy or lease a used EV (battery or plug-in hybrid), you can get:
- $1,000 standard rebate, or
- $4,000 Rebate Plus if you're income-qualified or enrolled in CalFresh, Medi-Cal, CalWORKs, LIHEAP, or similar.
How to qualify:
- Be a PG&E residential customer; the EV must be registered at your PG&E service address for at least 20 months.
- The car must be a pre-owned BEV or PHEV on California's HOV-eligibility list.
- Apply within 180 days of buying or leasing the car.
- You can get rebates for up to three vehicles over the program's lifetime.
Apply: apply.evrebates.pge.com [Source: evrebates.pge.com/program-requirements (accessed 2026-05-17)]
SCE and SDG&E run parallel programs in their territories. If you're not a PG&E customer, check evrebates.sce.com or evrebates.sdge.com.
2. Driving Clean Assistance Program (DCAP) — up to $12,000
DCAP is California's flagship program for low-income EV buyers. It runs statewide and supports used EV purchases.
What you can get:
- Up to $7,500 toward a new or used BEV, PHEV, or fuel-cell vehicle (financing assistance pathway).
- Up to $10,000–$12,000 if you scrap an older gas car (Clean Cars 4 All pathway).
- Plus $2,000 for a home Level 2 charger, or a mobility option if you don't want a car.
Who qualifies:
- Household income under 300% of the Federal Poverty Level (roughly $99,000 for a family of 4; varies by size).
- You haven't already used CVRP, CVAP, or another CARB light-duty incentive.
- Used vehicle must be 8 model years or newer with under 75,000 miles, priced at $45,000 or less.
- Must buy through an authorized California dealership.
Apply: drivingcleanca.org [Source: drivingcleanca.org/about-us/dcap-eligibility (accessed 2026-05-17)]
You can stack DCAP with the PG&E rebate if you qualify for both.
What about KeySavvy?
KeySavvy is still a useful private-sale payment platform — it protects both buyer and seller and handles title transfer. Fees are $99 each for buyer and seller (plus $99 if there's a loan). But KeySavvy can no longer apply the federal Used EV Tax Credit at point of sale, because that credit no longer exists for vehicles delivered after September 30, 2025. [Source: keysavvy.com/how-it-works (accessed 2026-05-17)]
If you're buying a used car from a private seller and want safe payment handling, KeySavvy still works. Just don't expect a $4,000 federal discount at checkout — that discount now comes from PG&E and DCAP, and only when you buy from a participating California dealership (DCAP) or hit PG&E's post-purchase rebate.
Get help
- PG&E rebate questions: 1-877-880-9646 or evrebates.pge.com
- DCAP questions: drivingcleanca.org/contact-us
- TechEmpower: call us if you need help with the application paperwork.
Sources
- IRS, "FAQs for modification of sections 25C, 25D, 25E... under the OBBB" — irs.gov, July 2025
- PG&E Pre-Owned EV Rebate program requirements — evrebates.pge.com
- Driving Clean Assistance Program eligibility — drivingcleanca.org