With the federal clean vehicle credits set to expire in September, a California Air Resources Board’s report suggests the state step in to offset the disappearing incentive.
The California Air Resources Board published the report this week as a response to Gov. Gavin Newsom’s June executive order requesting ways to make clean transportation less expensive and more accessible.
The “One Big Beautiful Bill” signed by President Donald Trump on July 4 after passing both chambers of Congress called for the end of the federal new clean vehicle credit of up to $7,500 and the used clean vehicle tax credit of up to $4,000 to end Sept. 30, 2025.
In its report, the California Air Resources Board called for “backfilling the federal tax credits.”
“Subject to available resources and scaled to match our resources and policy goals, funding could provide point-of-sale rebates, vouchers, or other credits to keep new vehicle sales robust and expand the availability of used [zero-emission vehicles] on the secondary market. Incentives should support new and used vehicle purchases and leases and be available for individual vehicle purchases as well as bulk purchases by fleet operators,” the report stated.
No funding was identified in the report for the incentives.
The report also called for encouraging private investment in clean vehicles; building infrastructure, including charging stations; reducing charging costs; and creating state purchasing policies prioritizing zero-emission fleet vehicles.
