The program supports new and pre-owned EV buyers while incorporating a dollar-for-dollar match from automakers to reduce the cost of switching to electric vehicles.
SAN DIEGO — Governor Gavin Newsom is proposing a $200 million program to help first-time buyers purchase zero-emission vehicles in California. The initiative comes after the federal electric vehicle tax credit expired last fall.
The program would support both new and pre-owned EV buyers while incorporating a dollar-for-dollar match from automakers to reduce the cost of switching to electric vehicles. Participating manufacturers must offer zero-emission vehicles registered in California to qualify for the program.
Eligible vehicles include zero-emission vehicles priced at or below the manufacturer’s suggested retail price limits specified by the federal Inflation Reduction Act of 2022. According to the California Air Reduction Board, these limits include $55,000 for new passenger vehicles, $80,000 for vans, SUVs and pickup trucks, and $25,000 for used vehicles.
“This is great news, this is great news for all Californians,” Elaine Borseth, the president of the Electric Vehicle Association of San Diego, said
The proposal emerges following the expiration of the federal EV tax credit, which previously provided up to $7,500 for new EVs and $4,000 for used EVs. Despite losing federal incentives, California continues to experience strong electric vehicle momentum.
“Even in California, where our federal incentive ended in September of last year, the last quarter of 2025 electric vehicle sales accounted for almost 20 percent of all new car sales, so the momentum is still there, consumers still want these cars,” Borseth said.
The California Air Resources Board would administer the program if lawmakers approve it and the governor signs it into law. The agency plans to host a spring workshop to present the proposal and get feedback.
San Diego residents stand to gain substantial benefits from the program, according to Borseth.
“They’re easier to drive, and there’s so many fewer moving parts that they’re much, much cheaper to maintain, and they’re much cheaper; it’s typically about half of whatever you’re spending on gas is what you’ll spend on electricity here in San Diego,” Borseth said.
