The federal government may be no friend of electric vehicles, but states are stepping up with their own policies to keep sales rolling. On Monday, California Governor Gavin Newsom signed into law a new EV incentive program that will—at least partially—make up for the end of the $7,500 EV tax credit.
We reported on this a couple of weeks ago when California's new budget bill was still making its way through the state legislature. Now Governor Newsom has signed SB 168, the law that outlines the new incentive, so it's official. When will it go into effect? Personally, I'd love to know.
I have a gas Subaru that works fine, but I've been eyeing my local Hyundai Ioniq 5s and Tesla Model 3 Highlands with particular envy lately. A little cash on the hood could help make that case for me.
View Price on AmazonOn Monday, the Governor's office said the incentive will come into play "later this summer." I reached out to the California Air Resources Board, which will design and administer the program, for specifics.
A spokesperson said they don't have more to share on the timeline, and that an announcement of the participating automakers should happen next month.
That will be important too, because car companies are ponying up half the money for the program. California has allocated $135.5 million, and auto companies will match that, bringing the total funding to around $270 million.
New EVs with an MSRP of up to $50,000 will qualify for a $3,500 credit. There is also an incentive for used EVs of $1,750, which applies to vehicles sold for $25,000 or less.
The new California incentive for used EVs has me looking at Tesla Model 3s.
The amounts are a little less than half of what you could get via the now-dead federal program. That was a little different, however, in that it also enforced income caps and special rules meant to prioritize U.S.-made cars with domestic battery components.
The California law isn't nearly so rigid. But the state is giving a helping hand to local companies. Any EV manufacturer headquartered in California is exempt from the price caps.
There's another wrinkle in the California incentive that EV advocates say could help the funding go a little farther. It's only for first-time EV buyers. California has one of the highest rates of EV ownership in the country, and surveys show that people who go electric tend to get hooked.
Source: insideevs.com
