California bill provides tax credit for certain vehicle owners

One bill headed to the California governor’s desk would give certain taxpayers money to not own a vehicle.

The Senate has signed off on Assembly changes to a bill that would provide a refundable income tax credit for each person in low-income households without a vehicle.

Sen. Anthony Portantino, D-Burbank, says the bill – SB457 – is aimed at reducing California’s dependence on cars, providing more incentives for walking, bicycling and reducing greenhouse gas emissions.

“It’s time we more aggressively commit to implementing modes of sustainable transportation,” Portantino said in a news release. “SB457 is an important step towards that goal. We can invest in the future by providing financial incentives for Californians to transition from vehicles to more sustainable options.”

He adds that single-occupancy vehicles are the No. 1 contributor to greenhouse gases.

The legislative action follows an August vote by the California Air Resources Board to require 100% of sales of new passenger vehicles in the state to be zero-emission by 2035. Gov. Gavin Newsom also signed an executive order for sales of medium and heavy-duty trucks to meet the same requirement by 2045.

Additionally, an income tax credit of 20% for the vehicle cost is available to individuals who own or lease a new zero emissions vehicle.

Portantino said evidence shows that electric cars still emit particulate matter particles.

Bill details

SB457 would allow an income tax credit of $1,000 for qualifying households that have zero registered vehicles. The credit would be applied for the 2023 tax year and would last through the 2027 tax year.

Qualifying taxpayers would include joint filers and heads of household with an adjusted gross income up to $60,000. Single filers with an adjusted gross income up to $40,000 also would qualify.

The California Teachers Association is the lone group to oppose the legislation. The group says, while the pursuit is well intended, SB457 would reduce overall funding for education. LL

More Land Line coverage of news from California.