California offers new tax credit worth up to $3,500 for drivers who switch to electric vehicles

SAN FRANCISCO (KGO) — If you’ve been thinking about switching to an electric vehicle, California is offering a new tax incentive.

Gov. Gavin Newsom just announced drivers can now get thousands of dollars off when they buy a new EV for the first time.

The fine print is that this applies to new cars under $50,000 and used cars under $25,000. Currently, this applies to EVs made by Hyundai, Tesla, Lucid, and will soon include Ford, Rivian, Chevrolet, Kia and even more carmakers this fall.

Car sales pitch aside, Newsom says this is all about California being a global clean energy leader as the Trump administration has backed away from several emissions goals, which Americans have mixed opinions about.

MORE: Gov. Newsom announces $1 billion rebate program for electric trucks

Elon Graham loves zooming around in his wife’s car, which is fittingly a Tesla.

“I love the car. The car is great. All the functions, all the things it does,” Graham said.

But what he doesn’t love is the charging time.

“In my line of work, I just have a lot of driving to do, and in just an eight-hour shift. I don’t have time to stop and charge,” Graham said.

It’s a big reason why he hasn’t made the switch from his own gas car. Those hesitancies are exactly what California is hoping to overcome.

Now, Californians will automatically get a $3,500 tax credit for a new zero-emission car, or half that for a used EV.
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The state set aside just over $135 million as a one-time investment, with partnering automakers matching that amount.

“It means cleaner air for their children. It means lower fuel and maintenance costs, saving money each month for the family budget,” said California Air Resources Board Chair Lauren Sanchez.

It’s part of a pledge Newsom made before President Donald Trump took office for a second term, ending the $7,500 federal EV rebates.

“The United States is doubling down on stupid. We’re trying in California to maintain our dominance in this space,” Newsom said.

A July PPIC survey found roughly two-thirds of Californians oppose Newsom’s ban on the sale of gas-powered cars by 2035. His response?

MORE: Trump administration sues California over state’s nation-leading vehicle-emission rules

“This is the next global race for the United States of America that cares about manufacturing, jobs, the industrial economy. They care about blue collar workers. What the hell is wrong with us,” Newsom said.

Drivers like Graham aren’t far from getting on board but are hoping an electric future is as easy as a petroleum present.

“If we can figure out how to charge it faster, I don’t think there would be anything wrong with this at all,” he said.

So as for those charging stations, California has more than 216,000 EV public and shared private charging ports — which is behind the state’s goal — but Newsom noted that does not include private charging in your garage, for example.

And Newsom also announced the state just surpassed 21,000 megawatts in its battery storage systems, which is powered by solar. That’s enough to power nearly 16 million California homes for hours after sundown.