"Gov. Gavin Newsom's state budget proposal includes setting aside $200 million to revive California's rebate program for the sale of electric vehicles, on the heels of the U.S. Congress and the Trump administration eliminating federal tax credits for EVs. Details - including how much buyers would receive - still have to be worked out and the proposal would need to pass through the California Legislature before going into effect."
""Anytime you can start putting more money behind selling something that's very expensive and has a lot of barriers to entry that go beyond just price, then you can help tip the scales in favor of a purchase versus (a consumer) not considering something at all," he said. But at the same time, Drury, said the extent of any sales improvement "could hinge upon a lot of the stipulations" regarding who would actually qualify for the rebates."
"The rebates ended in late 2023, with Road & Track magazine citing lack of funding due to a combination of surging EV adoption rates and a drop in gas tax revenue that threatened state road repair funds. In its final year, the program offered rebates as high as $7,500 for low- and moderate-income buyers but no rebates at all for those classified as higher income earners."
California's budget proposal allocates $200 million to revive a state electric vehicle rebate program following the elimination of federal EV tax credits. Specific rebate amounts, eligibility rules, and other program details remain to be determined and require legislative approval. The administration frames incentives as essential to making zero-emission vehicles affordable and accessible. An industry analyst said renewed rebates can boost EV sales but warned the impact will depend on eligibility stipulations. The prior Clean Vehicle Rebate Project ended in late 2023 due to funding shortfalls; its final year offered up to $7,500 for low- and moderate-income buyers.
Read at The Mercury News
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