Low-income Californians would get a $1,000 tax credit per household if they don’t own a car under a bill lawmakers sent to Gov. Gavin Newsom on Wednesday.
(Bloomberg Government) — Low-income Californians would get a $1,000 tax credit per household if they don’t own a car under a bill lawmakers sent to Gov. Gavin Newsom on Wednesday.
The credit is meant to offer incentives to reduce greenhouse gas emissions from cars, according to bill author Sen. Anthony Portantino (D). California regulators have set a goal of reducing emissions 40% by 2030, and the California Air Resources Board voted Aug. 25 to effectively ban gas-powered vehicle sales by 2035.
The measure (S.B. 457) would cost about $1 billion a year. It is sponsored by Streets For All, a Los Angeles group affiliated with progressive fundraising platform ActBlue, and has support from car-sharing company Getaround. It is opposed by the California Teachers Association.
Senators sent the bill to the Democratic governor with a 33-1 vote agreeing to amendments made in the Assembly, where it passed 56-0 earlier in the day, meeting the required two-thirds vote. It contained unrelated provisions when it first passed the Senate in May. Newsom hasn’t taken a position on the bill.
The $1,000 credit would be available to joint filers with incomes of $60,000 or less, or single filers with incomes of $40,000 or less. Amendments taken in the Assembly narrowed it from a $2,500 credit for every person 16 years or older in excess of the number of cars in the household, with a maximum of $7,500.
The previous version had no income limit, raising concerns that it would benefit high-income residents who have more flexibility to work remotely or live in neighborhoods with nearby amenities, public transportation, and bicycle lanes.
To contact the reporter on this story: Laura Mahoney in Sacramento, Calif. at lmahoney@bloomberglaw.com
To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergindustry.com; Kathy Larsen at klarsen@bloombergtax.com
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