California Governor Gavin Newsom has announced plans to allocate $200 million towards a new incentive program aimed at making electric vehicles (EVs) more affordable and accessible for residents. As part of the proposed budget for 2026-2027, the "light-duty zero-emission vehicle (ZEV) incentive program" will provide a one-time infusion of funding to support the adoption of EVs.
The move comes as a response to the federal EV tax credit expiration, which has dealt a significant blow to prospective buyers. According to data from the California Energy Commission, EV sales accounted for nearly 30% of new car sales in the third quarter of last year. The state's push to support EV adoption is seen as crucial in maintaining momentum and reducing greenhouse gas emissions.
While details on how the $200 million will be allocated are scarce, a rebate system similar to the federal tax credits has been proposed. This would provide an "on the hood" instant discount for EV buyers, similar to the up to $7,500 in federal rebates for new vehicles and up to $4,000 for used ones.
California Air Resources Board Chairwoman Lauren Sanchez revealed that the state is still exploring whether it will extend incentives to used EV purchases. The proposed incentive program aims to keep ZEVs affordable and accessible to all Californians, supporting the administration's strategy in promoting sustainable transportation options.
The move comes as a response to the federal EV tax credit expiration, which has dealt a significant blow to prospective buyers. According to data from the California Energy Commission, EV sales accounted for nearly 30% of new car sales in the third quarter of last year. The state's push to support EV adoption is seen as crucial in maintaining momentum and reducing greenhouse gas emissions.
While details on how the $200 million will be allocated are scarce, a rebate system similar to the federal tax credits has been proposed. This would provide an "on the hood" instant discount for EV buyers, similar to the up to $7,500 in federal rebates for new vehicles and up to $4,000 for used ones.
California Air Resources Board Chairwoman Lauren Sanchez revealed that the state is still exploring whether it will extend incentives to used EV purchases. The proposed incentive program aims to keep ZEVs affordable and accessible to all Californians, supporting the administration's strategy in promoting sustainable transportation options.