What Happens to California When Federal EV Tax Credits END?

California is once again at the center of the nation’s automotive and energy policy debate. With federal electric vehicle (EV) tax credits set to expire this September, the state is considering whether to create its own replacement program. This would not only affect car buyers but could also reshape the national conversation on emissions rules, vehicle affordability, and the balance of power between state and federal regulators.

The California Air Resources Board (CARB) released a report on August 19 recommending that the state consider “backfilling” the federal credits with its own point-of-sale rebates, vouchers, or other incentives to keep EV sales moving. The details remain vague, but the intention is clear: California wants to keep its aggressive zero-emission vehicle (ZEV) goals on track, even as Washington scales back related programs.

But California has been here before. This is not the first time the state has clashed with the federal government over vehicle regulations - and it likely won’t be the last.

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