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California Unveils $200 Million EV Rebates Requiring Automaker Match

The budget trailer bill sets up first-time buyer rebates tied to automaker matching pending legislative review.

Overview

  • Newsom's administration published initial program language in a budget trailer bill directing CARB to design rebates for first-time zero-emission vehicle buyers.
  • The proposal covers new and used vehicles and would deliver incentives at the point of sale to cut upfront costs.
  • Automakers must match state rebates dollar for dollar to participate, effectively doubling available funds for eligible models.
  • CARB says it will finalize per-vehicle rebate amounts and other details later this month, with vehicle price caps aligned to prior IRA limits.
  • The plan responds to the federal rollback of EV credits under President Trump and still requires approval by the California Legislature as officials engage automakers in Detroit.