California Launches $200M EV Incentive Program for First-Time Buyers, Requires Automaker Co-Funding

California Governor Gavin Newsom’s administration recently announced a proposed $200 million electric vehicle (EV) incentive program exclusively for first-time car buyers, requiring participating automakers to provide matching funds. The program would subsidize the upfront purchase cost of new or used EVs, though the exact subsidy amounts have not yet been disclosed. Eligible vehicles must comply with price caps established by the U.S. Congress in 2022. The move aims to address a sharp decline in EV sales during the final quarter of 2024—following the federal government’s termination on September 30, 2023, of tax credits worth $7,500 for new EVs and $4,000 for used EVs. Newsom stated that if a Trump administration were to eliminate federal EV tax incentives, California would revive a program similar to its concluded Clean Vehicle Rebate Project, which invested $1.49 billion over the past decade and benefited 586,000 vehicles.