For Immediate Release
SACRAMENTO – In an effort to drive broader adoption of zero- and low-emission vehicles, disadvantaged Californians would get a state sales tax break when replacing an older vehicle with an electric or hybrid car, under legislation by Senator Josh Becker that was approved by a key Senate Committee today.
“As California shifts gears toward a zero-emission transportation model, we need a vigorous agenda rooted in equitable clean transportation policies in order to achieve our goal,” said Senator Josh Becker, the Peninsula Democrat who serves as vice chair of the Joint Legislative Committee on Climate Change Policies. “Past transportation policies have moved the state forward, but progress has sometimes come at the expense of disadvantaged communities.
“We will not meet our state’s goal of having 1.5 million zero-emission vehicles (ZEVs) on our roads by 2025, unless we take a proactive approach to ensure that our transportation policy supports clean car adoption by all Californians. We must prioritize lower-income Californians so they are not excluded from this transition.”
Fewer than five years remain to achieve the goal, yet California hasn’t reached the halfway point. Just 635,602 ZEVs and hybrid vehicles were registered in the state as of April 30, according to the California Energy Commission.
To increase adoption of low and zero-emission vehicles, Senator Becker’s Senate Bill 771 creates a new incentive for Californians participating in the Clean Cars 4 All program. Clean Cars 4 All currently offers up to $9,500 in offsets to income-qualified Californians who live in districts covered by the program and who are replacing an older vehicle with a new or used ZEV or hybrid car. SB 771’s added incentive would exempt Clean Cars 4 All participants from paying the state’s portion of sales tax when purchasing a new or used ZEV or hybrid car. Buyers eligible for the program would still be responsible for the portion of sales tax that goes to local governments.
In a letter of support, Southern California Edison called the legislation “one of the most promising opportunities for California to address climate change, environmental justice, and achieve improved air quality is through transportation electrification.”
Thus far, however, “widespread adoption of electrical vehicles” has been hampered by costs and barriers to entry, SCE said. “Low-income customers are one of the last groups to adopt the latest technological innovation and are often confronted by financial constraints,” SCE observed. “SB 771 would accelerate the state’s environmental efforts by providing tax savings for customers to purchase an electric or hybrid vehicle, creating a more equitable marketplace for EV adoption, especially for low-income customers, while reducing the number of gasoline vehicles on the road and harmful emissions in our communities.”
The vote 4-0 by the Senate Governance and Finance Committee advances SB 771 to the Senate Appropriations Committee.
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Further Resources:
Media Contact: Leslie Guevarra, leslie.guevarra@sen.ca.gov, 415-298-3404