Overview
- The funding appears in the governor’s 2026–27 budget proposal and is intended as point‑of‑sale, “on the hood” discounts for qualifying electric vehicles.
- California officials say the program’s structure is still being developed, with the California Air Resources Board evaluating options for rebate size and used‑vehicle eligibility.
- The proposal follows Congress and President Donald Trump ending the $7,500 new‑EV credit and the $4,000 used‑EV credit on September 30, 2025.
- EV demand whipsawed after the federal credit expired, with a buying surge in the third quarter of 2025 followed by steep fourth‑quarter drops for several top models.
- Automakers are adjusting to weaker incentives, with Stellantis halting sales of certain plug‑in hybrid Jeep models in North America and General Motors recording a $6 billion charge to unwind some EV investments.