Californians Could Get a Tax Credit for Not Owning Cars

A bill proposed by California State Senator Anthony Portantino (D – La Cañada/Flintridge) and sponsored by Streets for All would offer a $2,500 per person tax credit to taxpayers who don’t own cars or whose households have fewer cars than people. According to an article by Melanie Curry in Streetsblog California, “It’s a stimulus aimed at people who need it most – those who cannot afford a car – as well as an incentive for everyone to reduce dependence on cars.”

With the transportation sector as the largest contributor to greenhouse gas emissions in the state, “California is investing a lot of money into helping drivers transition to electric vehicles, via direct incentives to car buyers, building infrastructure, and tax breaks for electric car owners.” But according to the state’s Air Resources Board, “Californians will need to drive less, full stop.”

As Curry notes, “Better transit and safer bike and pedestrian infrastructure will be absolutely be necessary. But millions of Californians do get by without owning cars, either because they can’t afford one or don’t want to add a further burden to the environment. This bill would reward people for living car-free or ‘car-light,’ and encourage more people to do so.”