June 30, 2026 - New California EV Incentives Coming

This is the Telemetry Transportation Daily for June 30, 2026, and I'm Sam Abuelsamid, Vice President of Market Research for Telemetry. 

The U.S. federal incentive program for electric vehicle purchases was sunset on September 30, 2025, and while a few states like Colorado and New Jersey still offer some incentives, most car buyers now have to pay full price. California, which has had several incentive programs over the years, is preparing to launch a new one targeted at first-time EV buyers and with a special break for Rivian and Lucid. 

The new program, which is currently working its way through the state budget process, would provide $135 million in funding for consumers buying their first new or used electric vehicle. While the final incentive amounts aren't finalized yet, the California Air Resources Board is targeting $3,500 toward new vehicles and $1,750 for used vehicles. That would be enough for incentives on up to 38,600 new vehicles or 77,000 used, or some mix in between.

There are some stipulations in the program similar to the former federal clean vehicle credit. To qualify, a new vehicle must have a manufacturer's suggested list price of less than $50,000, while used EVs must sell for under $25,000. Quite a few new EVs meet those criteria from companies including General Motors, Ford, Nissan, Toyota, Subaru, Tesla, and Slate. However, there are two EV-only manufacturers that don't currently have any products that fall under the $50,000 threshold, Lucid and Rivian. However, California's governor and legislators have also included a price cap exemption for products made by companies headquartered in California, which includes Lucid and Rivian. Tesla moved its corporate headquarters to Texas in 2021. 

If the incentive program is finalized, it would be implemented as a point-of-sale rebate program that effectively lowers the price and monthly payments rather than a tax credit program like many of the previous efforts. 

Thanks for listening.