California has introduced new rebates for electric vehicle (EV) buyers following the suspension of U.S. federal EV tax credits, with Governor Gavin Newsom signing legislation aimed at sustaining consumer demand for zero-emission vehicles.
Under the new programme, first-time EV buyers in California will be eligible for a $3,500 rebate when purchasing a new electric vehicle with a manufacturer’s suggested retail price (MSRP) of up to $50,000, AOL reported.
An additional $1,750 rebate will be available for lower-priced EVs with an MSRP of up to $25,000, providing greater support for buyers of more affordable models.
The rebate programme is backed by $270 million in funding, with financial contributions from both the California government and automakers.
The initiative follows the suspension of federal incentives that had supported EV adoption across the United States. The federal programme previously offered a $7,500 tax credit for eligible new electric vehicles and a $4,000 credit for qualifying used EV purchases, incentives that had played a key role in boosting electric vehicle sales.
California’s new rebate programme is intended to help offset the loss of those federal benefits and maintain momentum in the state’s transition to cleaner transportation. The state has long been a leader in EV adoption and has set ambitious targets to reduce greenhouse gas emissions from the transport sector.
