As federal incentives have disappeared, California is stepping in with its own funding to keep interest in electric vehicles alive.
On Monday, Governor Gavin Newsom enacted a new law establishing a $270 million rebate program expected to launch in the coming summer months.
This initiative will give California residents a rebate of $3,500 for qualifying new electric vehicles that have a manufacturer’s suggested retail price of $50,000 or below.
Additionally, a rebate of $1,750 will be offered for eligible used electric vehicles priced at $25,000 or less.
State officials have noted that this program is funded through California state resources and contributions from participating car manufacturers. However, the California Air Resources Board has not yet released information on which manufacturers are involved; that will reportedly come next month.
The new rebates were rolled out following the elimination of federal incentives for electric vehicles, which had previously provided tax credits of up to $7,500 for new purchases and up to $4,000 for used models before being repealed under a law signed by former President Donald Trump.
In a message on X, Newsom remarked, “California is filling the void left by President Trump and the Republicans’ repeal of the federal electric vehicle tax credit. We will not abandon our future to China.”
Currently, there are over 1.25 million electric vehicles registered in California, and in the past year, about one in five new cars sold in the state was an EV.
Despite a rise in electric vehicle ownership, sales have been lagging lately. Reports show a significant drop in zero-emission vehicle sales in the first quarter of this year compared to 2025.
This rebate program replaces the former EV incentive that concluded in 2023 after distributing around $1.49 billion in rebates, aiding the purchase of approximately 586,000 electric vehicles over a decade.
Even with ongoing legal disputes regarding California’s aim to phase out new sales of gasoline-powered vehicles by 2035, the state persists in implementing policies that promote the adoption of electric vehicles amidst federal challenges to its emissions regulations.
