State of California Smog Check Program Requirements

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I was about to renew my auto registration online as I’ve done mindlessly for many years, until I looked more carefully at the notice and I read the dreaded “STOP: SMOG Certification Required” imprinted near the top of the notice. I’ve owned the minivan for eight years and wondered, why NOW!?

The California Smog Check Program has been in place since 1984.and is administered by the Bureau of Automotive Repair, or BAR. BAR licenses independently owned smog check stations throughout the state.

THE BASICS

The BAR indicates a smog check is required EVERY OTHER YEAR as part of the vehicle registration process. It is also required when a vehicle changes ownership or when it is registered for the first time in California.

Every other year? That can’t be, because this was the first time I’ve been asked to do a smog check in the eight years since I owned the car, right?

The BAR goes on to explain that gasoline-powered vehicles, hybrid vehicles and alternative-fuel vehicles that are model year 1976 and newer require a smog check, with the following exceptions:

  • Eight model years and newer do not require a biennial smog check.

  • Four model years and newer do not require a change-of-ownership check.

In English, this means you need to add 8 to the model year of your vehicle to determine when you need to start doing biennial, or every other year, smog checks. For example, my 2014 minivan needs a smog test starting in 2022. And if I purchase a used 2018 vehicle in 2022, it would be subject to a smog check.

SMOG CHECKS ARE NOT REQUIRED FOR:

  • 1975 or older vehicles

  • Eight model years or newer vehicles

  • Four model years or newer vehicles changing ownership

  • Electric vehicles

  • Motorcycles

  • Tricycles (OK, I decided to throw this in to make sure you were paying attention.)

  • Diesel vehicles model year 1997 and older

  • Diesel vehicles with a gross weight of over 14,000 pounds

OTHER

Wait a second, my 2014 minivan is eight years old. Why this year, not next year, for the first smog check? Because the state assumes that model years are released in the calendar year prior to a vehicle’s model year. So regardless whether I purchased my brand new 2014 minivan in 2013 or 2014, it is assumed to be one model year old in 2014. That means, it is theoretically turning nine model years old in 2022. Hence, the need for a smog check for the first time in 2022.

If your smog check passes, hurray! The smog “certificate” is electronically submitted to the DMV and you are on your way to renew your vehicle registration. If it fails the test, you need to get it fixed, or you can visit a “smog check referee” for a second opinion.

“But I don’t want to get a smog check!” Well, then buy an electric car or a model 1975 or older car. Or buy a new car before your car turns eight model years old. Or move to a state like Alabama that doesn’t require emissions testing.

Banning Dam (Lake Eleanor Dam) in Thousand Oaks is a Ventura County Historical Landmark

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Banning Dam (also referred to as Lake Eleanor Dam) was designated as Ventura County Historical Landmark No. 120 in May 1988. Built in 1889 at 37 feet high and 140 feet long at its crest, the dam is located in a gorge adjacent to Westlake Boulevard, just south of Potrero Road. It is considered either the first or second concrete arched dam built in California.

The 8 acre Lake Eleanor can be seen as you are driving on Westlake Boulevard/Decker Canyon or you can do the Lake Eleanor Open Space Hike in Westlake Village for a view of the lake from above.

The lake and surrounding 529 acres of open space is fenced off from the public to create a habitat for wildlife. The area include rugged hills, rocky outcrops, freshwater marsh habitat, oak woodland and coastal sage scrub. Hawks and other large birds often use the outcrops for nesting sites and the area supports several species of rare/endangered plants.

The Lake Eleanor open space was acquired by the Conejo Open Space Conservation Agency in 1986. Banning Dam was designated City of Thousand Oaks historical point of interest No. 9 in May 1988.

Banning Dam

Banning Dam

All About the New Energy Efficient Home Improvement Credit for Tax Years Beginning in 2023

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NOTE: New legislation signed in July 2025 eliminates the Energy Efficient Home Improvement Credit beginning in 2026.

Prior to 2022, the federal “Nonbusiness Energy Credit” allowed for a lifetime tax credit of a maximum of $500 for installation of certain energy-efficient exterior doors, windows, skylights, certain roofs and insulation. It also could be used for the purchase of certain central air conditioners, electric heat pumps, gas water heaters and certain other appliances.

The property must be installed in your personal residence and the credit was based on 10% of the cost of the purchases. There were additional credit limits of $200 for exterior windows and skylights, $300 for heat pumps, central AC and water heaters, $150 for furnaces and boilers and $50 for qualified main air-circulating fans. This credit was extended through 2022 and is claimed on Form 5695, filed with your federal tax return.

The Inflation Reduction Act of 2022 brought dramatic changes to this tax credit and renamed it the Energy Efficient Home Improvement Credit (let’s call it EEHIC). Instead of a $500 lifetime cap, there’s a $1200 ANNUAL cap, and the credit is based on 30% of the purchase price, increased from 10%. Additionally, there is a separate $2,000 per year cap allowed for qualified heat pumps and heat pump water heaters, biomass stoves and boilers.

EEHIC covers two main categories of purchases - Energy Efficient Home Improvements and Residential Energy Property.

Energy Efficient Home Improvements include insulation materials, exterior windows, including skylights, and exterior doors that meet certain Energy Star requirements.

Residential Energy Property covered by EEHIC must meet or exceed certain high-efficiency standards and includes the following:

  • Electric or natural gas heat pumps and heat pump water heaters

  • Central air conditioners

  • Natural gas, propane or oil water heaters, furnaces and hot water heaters

  • Biomass stoves or boilers, oil furnaces and hot water boilers

  • Improvements to or replacements of panelboards, sub-panelboards, branch circuits or feeders with a load capacity of 200 amps or more

What efficiency standards must be met? Here are some examples:

  • Natural gas water heaters: ENERGY STAR certified models > 0.81 UEF (Uniform Energy Factor) for tanks less than 55 gallons and > 0.86 UEF for tanks greater than or equal to 55 gallons.

  • Tankless gas water heaters: ENERGY STAR models with > 0.95 UEF are eligible. 

  • Exterior windows and skylights: Must meet ENERGY STAR “Most Efficient” criteria. See www.energystar.gov/products/most_efficient

Home Energy Audits are another new category included in the EEHIC. This is an inspection and written report by a certified auditor that identifies energy efficiency improvements, including an estimate of energy and cost savings.

In addition to the annual $1200 and $2000 tax credit caps mentioned above, there are additional annual caps as follows:

  • $250 cap on each exterior door, up to a total of $500 per year

  • $600 annual cap on exterior windows and skylights

  • $150 annual cap on home energy audits

  • $600 annual cap on each Residential Energy Property item

How is the cost determined? Does it include installation? The cost of Energy Efficient Home Improvements (e.g. insulation, windows, doors) DO NOT include labor. Residential Energy Property (e.g. water heaters, central air, heat pumps), DO include the cost of labor. See IRS FAQs at THIS LINK posted 12/22/22 for more details.

How long is EEHIC in place? From 2023 through 2032 (at the current time).

Does EEHIC apply only to my primary residence? Yes for Energy Efficient Home Improvements (again - insulation, windows and doors). For Residential Energy Property, it can be in any U.S. home owned by the taxpayer.

Is the EEHIC carried to future years if I can’t use it? No. If your taxes are lower than the credit, lucky you! But no, any unused credit is not carried forward to future year tax returns.

How do you claim the EEHIC? Form 5695, filed with your federal tax return. Starting in the 2024 tax return, taxpayers will need to provide the qualified product identification number for any items purchased

Confused? Yes, so am I. But with this summary, your own research, dealers/retailers and your CPA, you’ll get this nailed down and take advantage of these new tax credits.

For a nine page IRS Fact Sheet about the Energy Efficient Home Improvement Credit as well as the Residential Clean Energy Property Credit (e.g. solar credit, which is back to 30% from 2022 through 2032, then 26% in 2033 and 22% in 2034), visit www.irs.gov/pub/taxpros/fs-2022-40.pdf.

Learn more about Energy Star qualified products at www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits.

One example of how to maximize the credit. Let’s say you’d like to replace 20 exterior windows on your home. The windows cost $400 apiece, excluding labor. If you install them all in one year, the cost would be $8,000 plus installation. $8,000 times 30% equals $2400, but your EEHIC is limited to $600, for a net cost of $7,400 plus installation. If you want to maximize the credit, you could buy 5 windows a year for 4 years at a cost of $2,000 per year, plus installation (ignoring inflation). By stretching the purchase over 4 years, you increase the tax credit from $600 to $2,400, for a net cost of $5,400 plus installation. Something to think about.

My Practical Experience

So I went to Home Depot to look for windows and water heaters that are qualified for EEHIC. I found a couple water heaters that met the requirements but the windows I had no clue which one did. So I thought, maybe I could figure it out by going back to the IRS Q&As at THIS LINK, which had a link to the ENERGY STAR website. So I entered my local zip code, which took me to a list of tax credits by product type at THIS PAGE. So I clicked Windows & Skylights Tax Credit at THIS PAGE. Then I clicked “Find Eligible Products” at THIS PAGE. Under Building Products I found the Windows, Door & Skylights category, which had a link to a “NFRC Directory” at THIS PAGE, where there are links to searches by region for the National Fenestration Rating Council. There’s no definition of what is in each region. So I guessed the Southern region, which I searched by product type, like Single and Double Hung Windows. From there, I saw a list of “Energy Star Partner” names. I picked Milgard, which then gave me a list of Milgard product lines that I’m going to assume meet the ENERGY STAR “most efficient” requirement (though it doesn’t clearly state that anywhere). So where do I buy these theoretically qualifying products? The site didn’t tell me. Bottom line: You’re probably going to have to just ask the retailer which products meet the IRS requirements as the IRS has not made this process easy.

Mount Pinos in the Los Padres National Forest is the Highest Point in Ventura County

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At 8,847 feet in elevation, Mount Pinos is the highest point in Ventura County. It is located in the northernmost tip of Ventura County in the Los Padres National Forest, near the Kern County border.

From Thousand Oaks, plan on about a 1 hour, 45 minute, 100 mile drive to get to the Mount Pinos parking area at the "Mt. Pinos Nordic Base," where you will find plenty of parking. The Base is at an elevation of 8,300 feet, which means you only have 547 feet of elevation gain to hike to the peak.

Plenty of parking available here at Mt. Pinos Nordic Base. The trail to the summit is to the left.

Plenty of parking available here at Mt. Pinos Nordic Base. The trail to the summit is to the left.

The hike to the top is about two miles along a wide access road shaded by pine trees much of the way. It is a fairly easy hike, with no significant challenges. Easy enough for kids and adults alike, though at this elevation your breathing may be a bit more labored than normal.

Take a deep breath of fresh air as you experience the 50th highest and 11th most topographically prominent summit in California.

Trail to the Mt. Pinos summit is largely tree-lined. You may trip on a pine cone or two!

You will notice a radio tower up ahead with about a 1/2 mile to go to the peak. You will come across a fork in the road. Turn right to get to the actual peak. Continue towards the left (west) for a Chumash interpretative area.

At this juncture of the trail, you will notice a radio tower up ahead at the summit of Mt. Pinos

The interpretative area has several benches and an interpretative sign. The Chumash name for Mount Pinos is Iwihinmu. The Chumash call the summit Liyikshup, the center of the world.

A view from Mount Pinos summit.

Of course, you'll find snow up here in the winter months.  There are no ski lifts, but cross country skiing, tubing and snow play are available....right here in Ventura County.

You may also find stargazers situated in the parking lot with high powered telescopes.

There are campgrounds available on Mount Pinos, including the following:

Directions to Mount Pinos: From I-5, take Frazier Park exit (Frazier Mountain Park Road). Go west approximately 6 miles. The road name changes to Cuddy Valley Road. Continue on it up Mt. Pinos. The road name changes to Mt. Pinos Highway.

Check traffic and weather conditions before you go, particularly during snow season. Good to have chains on hand.

Frazier Mountain Community Snow Play Visitor Page at www.facebook.com/groups/2579680555601233

Chinese Year of the Water Rabbit Starts Today, January 22, 2023

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Lunar year 2023, starting today, January 22nd, through February 9, 2024, is the Chinese Year of the Rabbit.

The Rabbit is the 4th animal on the Chinese zodiac, which also includes the Rat, Ox, Tiger, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog and Pig. Twelve animals in all, on a 12 year rotation. The Rabbit is a symbol of longevity, peace and prosperity in Chinese culture.

2023 is the year of the Water Rabbit. There are five elements associated with the Zodiac signs - Wood, Fire, Earth, Metal and Water. Combined with the 12 zodiac animals, each combination of animal and element rotates in on a sixty year cycle. Those born in Water years are agile, easygoing, approachable, and adaptable.

Celebrity Water Rabbits include Michael Jordan, Johnny Depp, Quentin Tarantino, Brad Pitt, Jennifer Beals, Phoebe Cates, Mike Myers, Helen Hunt and Lisa Kudrow.

Rabbits are, of course, the namesake of the Conejo Valley, and we are so close to the Pacific Ocean that the Year of the Water Rabbit is particularly special for residents of this beautiful area.

All About the New "Clean Vehicle Credit" and "Previously Owned Clean Vehicle Credit" Applicable to Tax Years 2023 through 2032

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NOTE: New legislation signed in July 2025 eliminates the Clean Vehicle Credit beginning in October 2025.

The Inflation Reduction Act of 2022 brought major changes to incentivize people to purchase electronic vehicles (EVs), plug-in hybrids and hydrogen fuel cell powered vehicles. The credit is now called the “Clean Vehicle Credit.” Here we will highlight aspects of the new laws for clean vehicle purchases in 2023 through 2032.

In the past, the major constraint on these credits has been a 200,000 car phase-out on the credits, which was blown through awhile back for several vehicles. This constraint is now gone.

However here are new requirements for taxpayers to receive clean vehicle credits of $7,500 per vehicle beginning in 2023. These new requirements include final assembly, MSRP and income limitations, and are highlighted below.

FINAL ASSEMBLY REQUIREMENTS

Final assembly of the vehicle must take place in North America. How do you find this out? View the list at https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit and look up the Vehicle Identification Number (VIN) to see if the auto meets the requirements. In future years there will also be specific requirements regarding components of the battery. Your dealer should be able to quickly give you an answer on this.

MSRP REQUIREMENTS

There are manufacturer’s suggested retail price (MSRP) limitations for vehicles to be eligible for the new credits. MSRP includes options, accessories and trim, but not destination charges. The maximum MSRP allowed is $55,000 for passenger vehicles and $80,000 for vans, pick-up trucks and SUVs. What that means is that if the MSRP is greater than those amounts, even by $1, they will not be eligible for any Clean Vehicle Credit. Let’s take a look at some MSRPs as of January 2023 for selected 2023 EVs:

  • Audi Q5 55 PHEV MSRP SUV starts at $57,400

  • BMW 330e MSRP starts at $44,900

  • BMW X5 PHEV SUV MSRP starts at $65,700

  • Cadillac LYRIQ SUV MSRP starts at $62,990

  • Chevy Bolt MSRP starts at $25,600

  • Chevy Bolt EUV SUV MSRP starts at $27,200

  • Chrysler Pacifica PHEV MSRP starts at $49,995

  • Ford Escape Plug-In Hybrid (SUV) starts at $38,500

  • Ford E-Transit Van MSRP starts at $49,575

  • Ford F-150 Lightning truck EV MSRP starts at under $40,000

  • Ford Mustang Mach-E (SUV) MSRP starts at $46,895

  • GMC Hummer EV Pickup MSRP starts at $110,295 (ineligible)

  • GMC Hummer EV SUV MSRP starts at $105,595 (ineligible)

  • Jeep Grand Cherokee 4xe SUV MSRP starts at $60,260

  • Jeep Wrangler 4xe SUV MSRP starts at $54,735

  • Lincoln Aviator Plug-In Hybrid SUV starts at $53,340

  • Lincoln Aviator Grand Touring SUV starts at $69,190

  • Lucid Air MSRP starts at $89,050 (ineligible)

  • Mercedes EQS SUV MSRP starts at $104,400 (ineligible)

  • Tesla Model 3 MSRP starts at $46,990

  • Tesla Model S MSRP starts at $96,820 (ineligible)

  • Tesla Model X MSRP starts at $119,200 (ineligible)

  • Tesla Model Y SUV MSRP starts at $65,990

  • Nissan Leaf MSRP starts at $28,040

  • Rivian R1S SUV MSRP starts at $72,500

  • Rivian R1T Pickup MSRP starts at $67,500

  • VW ID.4 SUV MSRP starts at $37,495

These MSRPs are not adjusted for inflation, which means that over the course of time, it is likely that, unless prices drop, less of these vehicles will be eligible for the credit.

INCOME AND OTHER LIMITATIONS

There are now income limitations to obtain the credit. Your “Modified Adjusted Gross Income” (MAGI*) must be $300,000 or less if you use the Married Filing Jointly filing status, $225,000 or less for Head of Household and $150,000 or less for other filing statuses in either the current or prior year to qualify for the credit. MAGI limits are not adjusted for inflation, which means that over time, less people will be eligible for the credits.

(*What is MAGI? For purposes of this credit, MAGI is basically all your taxable income, less various adjustments like IRA contributions, plus any untaxed foreign income. Ask your tax advisor for more specifics.)

The credit is non-refundable and any unused credit does not carryforward to future years. What this means is that if your taxes are less than $7,500 and your credit is $7,500, you will not receive the full amount of the credit.

You claim the credits on Form 8936 (Qualified Plug-In Electric Drive Motor Vehicle Credit) with your tax return.

Starting in 2024, you can apply the Clean Vehicle Credit towards the purchase of the vehicle at the dealership rather than wait and apply for the credit on your tax return. Yay! However, there could be some complications in doing this - what if your MAGI is too high? Will you have to pay the credit back on your return? These things will have to be sorted out.

USED CLEAN VEHICLE CREDITS - SOMETHING NEW

There are now tax credits available for certain used clean vehicles. It is aptly called the Previously Owned Clean Vehicle Credit (POCVC). If you purchase a used "clean vehicle” from an authorized dealer and the sales price is $25,000 or less, you may be able to take a tax credit of 30% of the sales price, up to a maximum credit of $4,000.

The MAGI limits to claim the used car credit are exactly half of the new car credits - $150,000 or less for joint filers, $112,500 for head of household and $75,000 for other filing statuses. So, if you are single and make $75,001 in 2022 and 2023, you will not be able to claim the POCVC for a 2023 purchase.

Tax planning (an example): Let’s say your W-2 wages are $76,000 this year and last year but you want to buy a $25,000 used clean vehicle and obtain a $4,000 POCVC on your 2023 tax return. Consider contributing to your employer’s 401k plan in 2023 enough to reduce your taxable W-2 income to $75,000. Or if your employer does not have a 401k, contribute $1,000 to an IRA to reduce your MAGI down to $75,000. (This is just one simple example; your tax advisor can help you with your particular situation.)

The POCVC, like the Clean Vehicle Credit, is not refundable and cannot be carried forward to future years.

Learn more on the IRS website at www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after.

The state of California has its own array of rebates that can vary from $1,000 to $7,000 currently, increasing to $7,500 starting February 28, 2023. Learn more on the California Clean Vehicle Rebate Project website at cleanvehiclerebate.org/en. Best to apply the California rebates at the time of purchase of the vehicle….otherwise they are considered taxable on your federal returns.

(As with other tax matters, ask your tax advisor for details. The information herein is current as of January 2023.)

IRS Announces 2022 Tax Filing Deadline for California Storm Victims Extended to May 15, 2023

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The IRS issued the press release below this morning, Tuesday, January 10, 2023, indicating that individual tax returns and payments for those living in counties designated by FEMA as disaster areas will be extended to May 15, 2023. We anticipate the California Franchise Tax Board will follow suit, but no word from the FTB at this time. (California has an automatic 6-month extension to file returns, but taxes still are required to be paid by the original tax filing date.) UPDATE: California has conformed to the extended tax filing dates.

Victims of severe winter storms, flooding, and mudslides in California beginning January 8, 2023, now have until May 15, 2023, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households that reside or have a business in Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Tehama, Ventura, Yolo and Yuba counties qualify for tax relief. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

The tax relief postpones various tax filing and payment deadlines that occurred starting on January 8, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due during this period.

This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18. Among other things, this means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.

In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due. The May 15, 2023, deadline also applies to the quarterly estimated tax payments, normally due on January 17, 2023, and April 18, 2023. This means that individual taxpayers can skip making the fourth quarter estimated tax payment, normally due January 17, 2023, and instead include it with the 2022 return they file, on or before May 15.

The May 15 deadline also applies to the quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after January 8, 2023, and before January 23, 2023, will be abated as long as the tax deposits are made by January 23, 2023.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022, normally filed this tax season). Be sure to write the FEMA declaration number – 3691-EM − on any return claiming a loss. See Publication 547 for details.

The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov

www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-severe-winter-storms-flooding-and-mudslides-in-california