AB 1851 Summary

• Establishes rebate program providing 10-15% rebates for plug-in hybrids and battery electric vehicles, and 25% for fuel-cell vehicles (up to 40-55% for low- and moderate-income residents in disadvantaged communities) through January 1, 2026.

• Creates electric vehicle charging station rebate program providing $2,000 for first-year installation, $1,500 for second year, and $1,000 for third year, limited to level 2 and rapid charging ports.

• Excludes trade-in vehicle value from sales and use tax calculations for qualified zero-emission and partial zero-emission vehicles when separately stated on invoice, with Greenhouse Gas Reduction Fund reimbursing counties and cities for revenue losses.

• Implements preapproval process allowing eligible applicants to obtain rebate authorization prior to vehicle purchase and permits dealers to apply rebate amounts as downpayments, with 7-day refund requirement.

• Removes the 85,000-identifier cap for zero-emission vehicles displaying distinctive identifiers to access high-occupancy vehicle lanes, extending federal authorization provisions.