Plug Into Adventure and Save: Wrangler 4xe Tax Credits and California Incentives

Are you ready to contribute to a greener future with zero emissions? As your California Jeep Wrangler 4xe dealer, Orange Coast CJDR is excited to show you how driving an electric vehicle like the Wrangler 4xe allows you to do exactly that without sacrificing your sense of adventure. Jeep makes it easier and more affordable than ever to get behind the wheel of the electrified icon, and the available Federal tax credits and California incentives can shave thousands of dollars off the sticker price.

Buying a vehicle can be a stressful and financially overwhelming experience, especially when factoring in incentives and tax breaks. As your automotive authority, we’re here to help you navigate the entire process so that you get the biggest tax break on your purchase of the Wrangler 4xe. From tax credits to California’s many incentives, here’s everything you need to know before you purchase the stunning, capable, innovative, and adventurous Jeep Wrangler 4xe.

Federal EV Tax Credit

Does the Wrangler 4xe qualify for the Federal tax credit? Yes. According to the IRS, the 2021 and 2022 Jeep Wrangler 4xe Plug-In Hybrid qualify for the maximum credit of $7,500. What does this entail at the time of purchase?

#1 – New Models Only

The Federal tax credit only applies to the purchase of new models. Therefore, you won’t receive the credit if you purchase a used Wrangler 4xe, nor is the credit guaranteed when you lease a Wrangler 4xe. What does this mean? If you lease a Wrangler 4xe, Jeep receives the tax credit and can apply that credit to your agreement to reduce your monthly payments. Jeep, however, isn’t required to do so.

#2 – Double Check Eligibility

Things are constantly changing in the automotive industry, especially with electric vehicles. This is especially true when you throw in the Federal government, which means that some electric vehicles that were once eligible are no longer on the list. How does this happen?

The Federal tax credit isn’t an endless pot of gold and, instead, allocates only so much money to each automaker. For example, the first 200,000 electric vehicles that Jeep builds are eligible for the full tax credit. The funds continue to dwindle before they expire, which usually occurs a year after the sale of the 200,000th model. With Jeep new to the EV segment, the automaker has plenty of available credit, unlike General Motors and Tesla, neither of which have any available credit left regardless of model.

#3 – Credit, Not Money In Hand

Let’s say that you found the 2022 Wrangler 4xe Sahara at its MSRP of $53,795.^[a] With the $7,500 tax credit, you’re only paying $46,295 for the Wrangler 4xe, right? In an ideal world, that would be the case; however, it’s important to remember that the Federal tax credit is precisely that––a credit and not money in hand.

#4 – The Money Comes Later

Using the same example above, you have to pay or finance $53,795 for the Wrangler 4xe and apply for the Federal tax credit on your taxes the following year. The $7,500 credit reduces your tax liability and is given to you as part of your tax refund. If you owe less than $7,500 in Federal taxes, you can’t apply the remaining credit toward your next year’s taxes.

California Incentives: Show Me the Money!

We love our home state of California for many reasons, especially for supporting those who purchase electric vehicles like the Wrangler 4xe. Unsurprisingly, California is the most supportive state in America and offers thousands of dollars in state incentives. These incentives range from energy reductions and clean fuel rewards to California’s Clean Vehicle Rebate Program.

PEV Charging Rate Reduction Incentive

Jeep makes it easy to plug in and recharge the Wrangler 4xe, and the state of California’s many utility companies make it more affordable. You may qualify for a PEV Charging Rate Reduction Incentive with your purchase of a Wrangler 4xe. Participating companies include Southern California Edison, the Los Angeles Department of Water and Power, San Diego Gas & Electric, and Pacific Gas & Electric.

Each company offers discounted rate plans to residential customers who purchase qualified EVs. For example, Southern California Edison offers a special Time of Use (TOU) plan that helps you save money by charging your Wrangler 4xe when rates are the lowest, such as in the early morning, afternoon, and overnight. Pacific Gas & Electric also offers special plans for EV owners via two options––one that combines EV costs with your home’s electricity usage and another that separates the costs by installing a second meter.

California Clean Fuel Reward Program

Supported by the California Air Resources Board and your electric company, the California Clean Fuel Reward Program is instant cash-in-hand when you purchase an EV like the Wrangler 4xe. Participating dealerships like ours will work with you to select the best Wrangler 4xe for your needs. Then, as we finalize the sale, we’ll apply the California Clean Fuel Reward toward your purchase. The reward offers up to $1,500 in savings depending on the size of the battery.

Clean Vehicle Rebate Project

California’s Clean Vehicle Rebate Project entices more drivers to adopt an electric lifestyle. The project offers cash rebates of up to $7,000 based on income and the type of vehicle purchased. Currently, the Wrangler 4xe is eligible for a cash rebate of up to $3,500. Since the rebate is based on your gross annual income, the amount will vary and is something our finance team is happy to assist you with as we help you navigate the buying process.

EVSE Installation Incentives

Are you worried about charging your Wrangler 4xe? California’s expansive network of utility providers makes it easy and affordable by offering installation incentives to customers who install charging stations at home. For example, our Burbank customers can apply for a $500 rebate with the City of Burbank Water and Power department when they have a Level 2 electric charging station installed at home. Anaheim Public Utilities has a similar program that offers up to $1,000 in incentives when you have a Level 2 charging station installed and participate in Time of Use programs. In addition, when you upgrade your service, electrical panels, or other EV-related components, Anaheim offers $2,000 more in incentives.

Our Los Angeles customers may be eligible for up to $1,000 in rebates. Residential customers from Glendale can qualify for up to $599 in incentives, while commercial and multi-family customers may qualify for up to $6,000 in rebates. These incentives, rebates, and rewards put more money in our customers’ wallets and make it easier and more affordable than ever to adopt an all-electric lifestyle.

California, You Make It Easy

Jeep makes our job easy here at Orange Coast CJDR because models like the Wrangler 4xe prove adventure doesn’t have to come at the cost of a greener future. Jeep believes, as do we, that you can and should have both. Fortunately, California agrees and makes it easy to adopt an electric lifestyle with a long list of incentives and rebates that put more money in your pocket and give you more confidence in your purchase. With the Orange Coast CDJR team, your future looks bright, and it certainly looks electrified.

^[a]MSRP subject to change. Please see dealer for details.