Electric car lease in California: what's left after the tax credit
As of September 30, 2026, there is no federal tax credit for a new electric car acquired after September 30, 2025, and the commercial credit that leasing companies could claim ended on the same date.
EV incentives as of September 30, 2026
The federal credit ended. Some California help remains.
Not available for vehicles acquired after September 30, 2025, the IRS says.
The commercial credit that leasing companies could claim ended on the same date.
Covered equipment placed in service through June 30, 2026, according to the IRS.
The Clean Air Vehicle decal ended at midnight on September 30, 2025.
Taken off at the dealer on a first zero-emission vehicle, at participating brands, while funding lasts.
Clean Cars 4 All and the Driving Clean Assistance Program.
LADWP and other city utilities list home charger rebates. Search DriveClean with your address.
Ask which ones are already in the price.
Checked on September 30, 2026. Programs open and close, so check again the month you shop.
Key takeaways
For an electric car lease in California, the main incentive left for most shoppers is MyFirstEV, a discount taken off at the dealer for people buying or leasing their first zero-emission vehicle from participating brands, alongside income-qualified state programs and local utility charger rebates. Leasing still suits many EV drivers, because the leasing company, not you, carries the risk of what the car is worth when the lease ends.
What happened to the federal EV tax credit
The consumer credit ended. The IRS says the new clean vehicle credit isn't available for vehicles acquired after September 30, 2025, where acquiring means a binding written contract and a payment on or before that date.
So did the lease route. Before the cutoff, a leasing company that owned the car for tax purposes could claim the commercial clean vehicle credit and pass some of the benefit into the lease. The IRS says no commercial credit is available for vehicles acquired after September 30, 2025 either.
The home charger credit has ended too. The federal credit for charging equipment at your main home covers equipment placed in service through June 30, 2026, according to the IRS.
What's left are manufacturer and lender incentives, which change monthly, and the California programs below.
California incentives for an electric car lease
These were checked on September 30, 2026. Programs open and close, so check again the month you shop.
MyFirstEV. Run by the California Air Resources Board (CARB), MyFirstEV takes an incentive off the price at the point of sale for people buying or leasing their first zero-emission vehicle. The main rules, from CARB's FAQ:
Battery-electric and fuel cell cars qualify; plug-in hybrids don't.
The car must be model year 2026 or newer, and new cars must come in under an MSRP cap unless the brand is headquartered in California.
It comes off at the dealer, not as a rebate later, and it isn't retroactive.
It's one per person for the life of the program. If you've been on the registration or title of an EV before, even in another state, you don't qualify.
It can be combined with other CARB programs and with non-CARB incentives.
The car can't be delivered or registered outside California, and the incentive lasts only while funding does.
Availability depends on the brand. CARB's list, updated August 31, 2026, shows it available now from Cadillac, Chevrolet, Ford, Genesis, Honda, Hyundai, Kia, Lexus, Lucid, Nissan, Rivian, Subaru, Toyota and Volvo (new vehicles, plus used at some brands), with Mitsubishi launching in November 2026 and Tesla closed. BMW, Mercedes-Benz, Audi and Porsche weren't on the list. Check CARB's participating manufacturers page the month you shop.
Clean Cars 4 All and the Driving Clean Assistance Program. Both are income-qualified. Clean Cars 4 All helps lower-income residents of priority communities replace an older, higher-polluting car, and participants can buy or lease a new or used plug-in hybrid or zero-emission vehicle, with help toward a home charger or a prepaid charging card. It runs through five participating air districts, and the statewide Driving Clean Assistance Program brings it to areas without a local program and adds financing help. The Driving Clean Assistance Program is for income-qualified Californians who haven't already used a CARB light-duty vehicle incentive.
Utility programs. LADWP runs a Residential EV Charger Rebate Program for its residential customers, with an extra rebate for a dedicated EV meter and a discounted rate for charging on that meter. Other Southern California city utilities, including Burbank, Glendale, Pasadena, Anaheim and Riverside, list home charger rebates on the state's DriveClean site. Search DriveClean's incentive finder with your address to see what applies to you.
What's gone. The Clean Air Vehicle decal, which let EVs use carpool lanes with only the driver aboard, ended at midnight on September 30, 2025, when the federal authority behind it expired.
Why many drivers still lease an EV
The resale risk sits with the leasing company.
You pay to use the car for the term. At the end you can hand it back.
The end-of-lease value is fixed when you sign. If EVs lose value faster than expected, it is not your loss.
If you will keep the car for many years or drive well beyond typical allowances, owning can cost less over time.
Charging at home in California
If you rent. For rental leases signed, extended or renewed since July 1, 2015, California requires landlords to approve a tenant's written request to install a charger at the tenant's assigned parking space, as long as the tenant follows the landlord's process and pays for the installation and the electricity. There are exceptions, including properties with fewer than five parking spaces, rentals where parking isn't part of the lease, and properties where chargers already serve at least 10 percent of the spaces. You'll also need personal liability insurance for it, unless the charger is certified by a nationally recognized testing lab and a licensed electrician installs it.
If you live in a condo or HOA. Rules that effectively prohibit or unreasonably restrict a charger in your unit or designated parking space are void. The association has to handle your application like an architectural change, and if it doesn't deny it in writing within 60 days, it's deemed approved, unless the delay comes from a reasonable request for more information.
Pick an EV rate. SCE's TOU-D-PRIME plan is designed for EV and plug-in hybrid owners and lessees, and SDG&E offers EV-TOU-5, plus EV-TOU for homes with a separate EV meter. Both utilities charge the most from 4 to 9 p.m., so set the car to charge overnight. LADWP discounts EV charging on a separately metered time-of-use rate; check its peak hours for your plan.
A charger you buy for your home is yours, not the leasing company's, so it keeps working for you after this lease ends.
Why an electric car lease still makes sense in California
The resale risk sits with the lessor. The car's end-of-lease value, its residual value, is fixed when you sign. If EVs lose value faster than expected, you can hand the car back instead of absorbing the loss.
The technology keeps moving. Range, charging speed and software keep improving, and a lease makes it easy to move to a newer car at the end of the term.
The state incentive works on a lease. MyFirstEV covers leasing as well as buying.
The case for buying: if you'll keep the car for many years, drive well beyond typical allowances, or want to avoid mileage and wear charges, owning can cost less over time. See lease or buy and choosing your lease mileage.
EV costs that are specific to California
No smog check for electric cars.
A Road Improvement Fee on zero-emission vehicles from model year 2020 on, charged when the registration renews, not at the first registration of a new zero-emission car bought from a licensed dealer.
Tax on each lease payment, the same as for a gas car. See California sales tax on a car lease.
What to ask before you sign an EV lease
Is MyFirstEV offered on this model at this dealer this month, and will it show as its own line on the contract?
Do I qualify, given who will be on the registration?
Which manufacturer incentives are already in the price, and do any require leasing through the brand's finance company?
What's the mileage allowance, and what does each extra mile cost at turn-in?
Is any charging equipment or charging credit included, and what happens to it if the lease ends early?
What's the purchase option price at the end of the lease?
Then check the numbers with how to read a lease quote.
How 021 helps
021 Auto Leasing arranges leases, financing and cash purchases on any make and model, from everyday cars to exotics, and gets several dealers to quote the same car. You get one written quote with the payment, drive-off, term, miles, taxes, fees and 021's fee before you agree to anything, so you can see exactly which incentives made it onto the page.
MyFirstEV, the main rules
Check these before you count on it.
From CARB's FAQ. Brand list updated August 31, 2026. Check it again the month you shop.
- Your first EVOne per person. Never on an EV registration or title before, even in another state
- Battery-electric or fuel cellPlug-in hybrids don't qualify
- Model year 2026 or newerNew cars must be under an MSRP cap, unless the brand is headquartered in California
- A participating brandAvailability depends on the brand. Ask if it is offered on this model this month
- Taken off at the dealerNot a rebate later, and not retroactive
- Stays in CaliforniaThe car can't be delivered or registered outside the state
Covers leasing as well as buying. Lasts only while funding does.
Common questions
Can you get the federal EV tax credit on a lease?
What EV incentives does California offer right now?
Does MyFirstEV work on a lease?
Is it worth it to lease an electric car?
Can I install a home charger if I rent?
021 Auto Leasing is a licensed California autobroker (license #82402). All new cars arranged for sale are subject to price and availability from the selling franchised new car dealer.