- California hopes to restore state incentives to boost electric vehicle adoption.
- The clean vehicle rebate project ends in 2023.
- A new budget proposal from California Gov. Gavin Newsom looks to offset the loss of the $7,500 federal electric vehicle tax credit.
California is proposing new incentives for electric vehicle buyers in a move that could cushion the blow of the loss of the $7,500 federal electric vehicle tax credit passed by Congress. He was killed last September.
According to 2026-2027 Budget summary The state is proposing to allocate $200 million to create a new incentive program for light-duty zero-emission vehicles (ZEVs), Gov. Gavin Newsom’s office released on Friday.
Photo by: Ford
But the exact details are still missing. The budget document does not explain how the incentives will be structured, who will be eligible, or how much buyers can actually expect to save. We’ve reached out to Newsom’s office and the California Air Resources Board (CARB) for more information, and will update this story if we hear back. USA Todaywhich first reported the news, said the program will include “on the hood” discounts that reduce the upfront cost of an eligible vehicle.
However, the intent seems clear: The state wants to continue to push the market toward clean, battery-powered cars at a time when the affordability of electric vehicles is a growing concern.
Incentives for electric vehicle buyers may be the state’s best bet for doing so now that Congress has repealed the Advanced Clean Vehicle II regulations, which forced auto companies to sell an increasing number of zero-emission vehicles in the state over the next several years. These rules, which culminate in a ban on pure gas vehicle sales by 2035, could still return; California claims Congress did not have the authority to overturn the policy and is suing.
In the meantime, the state can close the gap and continue to encourage clean car sales through this type of incentive.
Image by: Rivian
The proposal also represents a quiet reflection of sorts. When the federal tax credit for electric vehicles was eliminated last year, Governor Newsom initially pledged that California would fill the state’s incentives. It is later He walked it againSaying that the state does not have the funds necessary to do this. Now, with a new budget under consideration, the idea appears to be back on the table.
If the Legislature approves the plan, the impact could be meaningful. California is by far the largest electric vehicle market in the United States, and is supported by the most comprehensive charging network in the country. Incentives could help make electric vehicles more accessible as automakers face a cold electric market.
Meanwhile, a number of other states, including Colorado, Massachusetts and Oregon, continue to offer Generous state incentives. California’s latest proposal could help it maintain its leadership role in electric vehicle adoption at a time when federal support is practically nonexistent.
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