California's new $200 million electric vehicle support program

California authorities have unveiled details of a new $200 million electric vehicle support program. This initiative aims to maintain the pace of transitioning to zero-emission vehicles amid a reduction in federal incentives in the U.S.

Under the proposal, the subsidy will apply to both new and used electric vehicles, subject to certain criteria. A key requirement is that manufacturers must co-finance the discount on a dollar-for-dollar basis, effectively doubling the incentive for buyers. The discount is expected to be provided immediately at the point of purchase or lease to reduce upfront costs.

Only California residents buying an electric vehicle for the first time will be eligible to participate. The California Air Resources Board explained that this restriction helps expand the market by attracting new consumers, as studies show that after switching to a ZEV, buyers typically do not return to gasoline or diesel cars.

The final amount of support per vehicle has not yet been specified. It is also proposed to set price caps similar to previous limits under the Inflation Reduction Act: $55,000 for passenger cars and crossovers, and $80,000 for large SUVs and pickups.

The program remains a proposal and requires approval by the state legislature.