California is considering giving electric vehicle (EV) buyers money incentives after the US federal government drops its incentives from September 2025.
A California Air Resources Board (CARB) report proposed funding “to interchange expiring federal tax credits and expand access to ZEVs [zero emission vehicles] for low-income consumers and small businesses”.
US President Donald Trump included the axing of a $US7500 ($A11,674) tax credit for brand spanking new purchases/leases and a $US4000 ($A6226) for purchasing a used EV as a part of a bill passed into law on July 4, 2025.
The bill was vehemently opposed by CEO of electrical automaker Tesla, Elon Musk, a former special government worker within the Trump administration.
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Mr Musk took to social media to explain it as “utterly insane and destructive”, saying “It gives handouts to industries of the past while severely damaging industries of the longer term”.
The bill’s passing means the US government will end funding the incentives after September 30, 2025.
“As federal agencies move backward, we’re moving forward with a set of actions to expand clean and 0 emission vehicle adoption across all vehicle types,” CARB chair Liane Randolph told media, in line with Automotive News.
While the California government is seeking to step in, it’s yet to find out how it’d fund such a program, with potentially lower money amounts than outgoing incentives.
The CARB recommendations also include increasing funding for EV infrastructure, an area California already leads all other US states considerably, in addition to in search of ways to cut back EV charging costs for consumers.
Ahead of the bill passing, California Governor Gavin Newsom passed an executive order on June 12 recommitting the state – the world’s fourth largest economy – to its clean vehicle program.
Yet the state faces a challenge from Washington, threatening its ability to enact its own emissions regulations – permitted by a waiver from the Environmental Protection Agency (EPA) – which have included fuel economy measures impacting the worldwide auto industry.
This Article First Appeared At www.carexpert.com.au
