EV Subsidies Gravy Train in California Runs Dry

In brief: The fund for electric vehicle subsidies in California has run out of money.

The word

California's rebate of up to $5,000 for buying an electrified vehicle has run out of funding in the cash-strapped state. After 1,978 vehicles being sold and gaining the credit, the state's California Air Resources Board (CARB) has run out of funds.

The fund held $11.1 million and people who qualify are now being put on waiting lists with the fate of their credit being in limbo as lawmakers have not re-funded the initiative.

CARB has requested up to $17 million in additional funding and plans to send rebates if the funds are granted. Rebates may be cut down to $2,500 however, so those on the waiting list may get the full amount, half, or nothing at all, depending on funding status and whether rule changes are made.

And so ...

The rebate fund was a big part of why California is the state most car companies begin EV sales to consumers.