California Proposes $200M EV Incentive Plan to Counter Federal Subsidy Cuts

To address the impact of the federal electric vehicle (EV) tax credit being eliminated, California is accelerating the implementation of new emissions regulations and introducing fresh incentives. Lauren Sanchez, Chair of the California Air Resources Board, revealed that the state is currently in discussions with Detroit’s Big Three automakers regarding the next phase of greenhouse gas emissions regulations. Meanwhile, Governor Gavin Newsom plans to announce a $200 million EV incentive program in early February, aimed at filling the policy gap created after the Trump administration repealed the federal EV tax credit through the "Big and Beautiful Act" last October, and to continue advancing the state's transportation-sector emissions reduction goals.