California Governor Gavin Newsom announced this month that he is seeking $200 million in state funding to provide electric vehicle (EV) tax rebates to offset the loss of the federal EV tax credit, which was recently eliminated under legislation supported by President Donald Trump.
Under the federal One Big Beautiful Bill Act, the $7,500 federal tax credit for new EVs and a $4,000 credit for used EVs expired on September 30, 2025, leaving buyers without a previously significant incentive to purchase these zero-emission vehicles.
Governor Newsom’s proposal, included in California’s 2026–2027 state budget plan, would create a new state-funded EV rebate program aimed at helping California residents afford zero-emission vehicles. Although the details, such as the amount per vehicle, eligibility requirements, and income caps, have not yet been finalized, the initiative is intended to be run through the California Air Resources Board and would provide up-front discounts at the point of sale.
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