California approves $3,500 rebate for new EV buyers
Gov. Gavin Newsom signed a state rebate after the federal EV tax credit ended and U.S. electric vehicle sales weakened.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
California has approved a $3,500 rebate for residents buying new electric vehicles, according to Ars Technica. Gov. Gavin Newsom signed the measure into law after the end of a federal incentive that had helped lower the cost of some EV purchases.
The new state rebate gives California buyers a benefit that is no longer available nationally through the IRS clean vehicle tax credit, Ars Technica reported. That federal program previously allowed eligible buyers to claim as much as $7,500 on qualifying electric vehicles.
Ars Technica reported that the federal credit ended at the end of last September. The outlet tied the change to actions by President Donald Trump and congressional Republicans that rolled back energy-efficiency and pollution-control policies.
Under the former IRS Section 30D credit, the full benefit was not available for every vehicle or every buyer, according to Ars Technica. Vehicles had to fall below a price cap, and buyers had to meet income limits to qualify.
State incentive follows federal rollback
California’s rebate is aimed at residents of the state, Ars Technica reported. The report did not describe the full application process, the funding level for the program or whether additional eligibility rules apply beyond residency and the purchase of a new EV.
The timing places California’s action against a weaker U.S. market for electric vehicles. Ars Technica reported that EV adoption began to fall after the federal credit was abolished, and that sales have since slowed.
Automakers have also canceled some electric vehicle product lines in the period after the federal policy change, according to Ars Technica. The report described the cancellations as part of the industry’s response to a federal government less supportive of moving the market away from oil.
California has long been one of the most important U.S. markets for electric vehicles, and the new rebate gives the state a separate tool to support purchases after the national incentive disappeared. For buyers outside California, Ars Technica reported, the former federal credit is no longer available.
The rebate does not restore the former federal benefit, which could be larger for qualifying vehicles and buyers. It does, however, creates a state-level discount for California residents at a time when the national incentive structure has changed.
This story draws on original reporting from Ars Technica.