"The loss of the federal EV tax credits may have been a huge blow to prospective buyers, but California wants to fill that gap for its residents. Governor Gavin Newsom's proposed budget for 2026-2027, which was released on Friday, includes a "light-duty zero-emission vehicle (ZEV) incentive program" that details a one-time infusion of $200 million. According to the budget summary, this incentive program is "a critical part of the Administration's strategy to keep ZEVs affordable and accessible for all.""
"There are no details in the budget summary outlining how exactly the $200 million would break down on a per-vehicle basis, but reported that the rebate would be an "on the hood" instant discount for EVs. Previously, buyers would get up to $7,500 back in federal tax rebates on new EV purchases and up to $4,000 on used EVs."
Governor Gavin Newsom's proposed 2026–2027 budget includes a one-time $200 million light-duty zero-emission vehicle (ZEV) incentive program intended to keep ZEVs affordable and accessible. The incentive is described as an on-the-hood instant discount for EV purchases, though the budget summary provides no per-vehicle breakdown. The proposal must still pass the state legislature to take effect. The program aims to offset the loss of federal EV tax credits, which previously offered up to $7,500 for new EVs and up to $4,000 for used EVs. California saw nearly 30 percent of auto sales as EVs in Q3 2025. State officials are still deciding whether used EV buyers will qualify.
Read at Engadget
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