California is proposing new incentives for electric vehicle buyers in a move that could soften the blow from the loss of the $7,500 federal EV tax credit, which Congress killed last September.
According to the 2026-2027 budget summary released by Governor Gavin Newsom’s office on Friday, the state is proposing to set aside $200 million to establish a new light-duty zero-emission vehicle (ZEV) incentive program.
A handful of other states, including Colorado, Massachusetts and Oregon continue to offer generous state incentives. California’s latest proposal could help it maintain its leadership role in EV adoption at a time when federal support has become practically nonexistent.
