California Governor Gavin Newsom has announced plans to allocate $200 million in state funds to support electric vehicle (EV) purchases, a move aimed at filling the gap left by the loss of federal EV tax credits.
The proposed budget includes a one-time incentive program for light-duty zero-emission vehicles (ZEVs), which is designed to keep these vehicles affordable and accessible to all residents. According to officials, this initiative is a critical component of California's strategy to promote EV adoption.
In 2025, the state reported that nearly 30% of auto sales were electric vehicles, with the California Energy Commission tracking significant growth in EV demand. To support this trend, Governor Newsom has proposed providing rebates for eligible purchases.
While details on the exact breakdown of funding are not yet available, reports suggest that buyers would receive an instant discount at the point of sale, rather than waiting to claim a rebate at a later date. In contrast to federal incentives, which offered up to $7,500 in tax credits for new EVs and up to $4,000 for used vehicles, California's proposed program appears to be focused on supporting the purchase of newer models.
The chairwoman of the California Air Resources Board has noted that the state is still exploring options for providing tax credits to buyers of used electric vehicles.
The proposed budget includes a one-time incentive program for light-duty zero-emission vehicles (ZEVs), which is designed to keep these vehicles affordable and accessible to all residents. According to officials, this initiative is a critical component of California's strategy to promote EV adoption.
In 2025, the state reported that nearly 30% of auto sales were electric vehicles, with the California Energy Commission tracking significant growth in EV demand. To support this trend, Governor Newsom has proposed providing rebates for eligible purchases.
While details on the exact breakdown of funding are not yet available, reports suggest that buyers would receive an instant discount at the point of sale, rather than waiting to claim a rebate at a later date. In contrast to federal incentives, which offered up to $7,500 in tax credits for new EVs and up to $4,000 for used vehicles, California's proposed program appears to be focused on supporting the purchase of newer models.
The chairwoman of the California Air Resources Board has noted that the state is still exploring options for providing tax credits to buyers of used electric vehicles.