Included within California Governor Gavin Newsom’s 2026-27 budget proposal is a plan to spend $200 million on new EV incentives. The move is designed to counter the $7,500 federal tax credit that ended last year.
The proposal states, “The Budget maintains California’s commitment to advancing clean transportation by providing targeted funding to incentivize ZEV adoption, along with additional actions to accelerate deployment of the infrastructure needed to sustain continued growth.”
The proposed $200 million is to be used for establishing a new light-duty ZEV incentive program. As the proposal notes, “Incentives are a critical part of the Administration's strategy to keep ZEVs affordable and accessible for all.”
As reported by Reuters, it is not yet clear how much tax credit per vehicle the state will offer.
Michael Morris is Editor for EC&M. He is also Editor for EC&M's sister publications ElectricalWholesaling and Electrical Marketing. Email him at [email protected].
