- A $7,500 federal tax incentive on electric vehicles (EVs) expires next week
- California had discussed offering its own program, but now says it will not
California will not offer its citizens a $7,500 tax rebate on the purchase of a new electric vehicle (EV), after all.
The federal government’s own EV tax incentive expires at midnight on Sept. 30. The IRS has said car shoppers can still apply for the credit if they have signed a binding contract to buy a car and paid a down payment by that time, even if they don’t take delivery until after the month ends.
The end of the credit has triggered a spike in EV sales as buyers rush to claim the credit while they still can. Analysts from Kelley Blue Book parent company Cox Automotive expect EV sales to fall off dramatically when the credit ends, though they will likely grow again slowly from there.
California state officials had discussed creating a matching program of their own. But Gov. Gavin Newsom (D) told reporters last week, “We can’t make up for federal vandalism of those tax credits.”
The state will continue to build charging infrastructure, he said, but not offer direct subsidies to car buyers.
California accounts for more than a quarter of the nation’s EV sales most months. Reuters explains, “That market heft positioned the state as the best alternative for EV incentives.”
