California Plans To Plug The EV Tax Credit Gap With $200 Million
Briefly

California Plans To Plug The EV Tax Credit Gap With $200 Million
"California is proposing new incentives for electric vehicle buyers in a move that could soften the blow from the loss of the $7,500 federal EV tax credit, which Congress killed last September. According to the 2026-2027 budget summary released by Governor Gavin Newsom's office on Friday, the state is proposing to set aside $200 million to establish a new light-duty zero-emission vehicle (ZEV) incentive program."
"Still, the intent seems clear: The state wants to keep nudging the market toward cleaner, battery-powered vehicles at a moment when EV affordability has become a growing concern. Incentives for EV buyers may be the state's best bet for doing that now that Congress tossed out its Advanced Clean Cars II regulations, which forced car companies to sell an escalating number of zero-emission vehicles in the state over the next several years."
California aims to introduce a $200 million light-duty zero-emission vehicle (ZEV) incentive program in the 2026–2027 budget to counteract the loss of the federal $7,500 EV tax credit. The state's previous Clean Vehicle Rebate project ended in 2023. Program details such as incentive structure, eligibility, and buyer savings remain unspecified. The proposal may include 'on the hood' discounts to reduce up-front costs. Congress recently nullified the Advanced Clean Cars II regulations and the federal tax credit, and California alleges Congress lacked authority and is pursuing litigation. State incentives are intended to sustain market momentum toward cleaner, battery-powered vehicles.
Read at insideevs.com
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