California residents who don’t own a registered vehicle could receive a $1,000 tax credit each year for five years starting in 2023, thanks to a bill the state Assembly passed last week. SB 457 now awaits the signature of Gov. Gavin Newsom, who issued an an executive order in 2020 putting California on a path away from gasoline-powered cars.
The momentum for such a tax credit comes on the heels of regulations the California Air Resources Board adopted Aug. 26 to ban gas-powered vehicle sales in the state by the 2035 model year. The regulations also require automakers to achieve a 35% share of zero-emission vehicle sales as early as the 2026 model year.