California's rebate program for electric vehicles will soon cut off for higher-income green car buyers. The income cap on the rebate program is allegedly set for implementation within this month.

According to Sacramento Bee, the program will operate its new program that would implement an income cap starting on March 29. Single tax filers who earn $250,000 will not qualify for rebates on plug-in hybrid electric vehicles and battery electric vehicles.

The income cap boosts to $340,000 for head-of-household filers. Another rise of $500,000 is set for joint filers. Yahoo! Finance mentioned that the chances come as critics have alleged the rebate program of being a subsidy for the rich individuals.

On the other hand, low- and moderate- income residents will be entitled for an additional $1,500 in rebates. The California Air Resources Board Chairwoman Mary Nichols stated that the increase of the income cap will help to ensure that the more drivers in communities most affected by air pollution can take advantage from the clean vehicles.

"And more ultraclean and zero-emission vehicles on our roads mean cleaner air for all Californians," she added. The current California rebates take up to $1,500 for plug-in hybrid electric vehicles. Then $2,500 rebate is set for battery electric vehicles, as reported by The Washington Post.

Moreover, the applicants must have household incomes that are less that or even equal to 300 percent of the federal poverty level to qualify for the $1,500 increase. For an individual, the gross yearly income limit is a little under $35,640. For a household of four, the gross annual income limit is $72,900.

Meanwhile, the Clean Vehicle Rebate Project has issued more than $291 million in rebates for more than 137,000 vehicles. But because of California's rebate program for electric vehicles, the rebate will be cut off for higher-income green car buyers.