California Air Resources Board

Monetary incentives from federal, state, and local sources have a history of demonstrating the feasibility of zero-emission technologies. Funding also helps to increase adoption of the newest technologies before they are required. Regulations also create strong incentives for businesses to develop or adopt zero-emission technologies when they can be used for compliance or have monetary value. The following programs are examples of traditional incentive programs that provide funding for zero-emission technologies.

Commercial Clean Vehicle Federal Tax Credit Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds and $40,000 for all other vehicles. Businesses and tax-exempt organizations qualify for the credit.  Learn More
Advanced Vehicle Technology and Infrastructure Funding Finder Tool Tool to assist stakeholders search and filter for medium- and-heavy-duty alternative fuel vehicle and infrastructure program Filter results by ZIP code and other criteria Learn More
Hybrid & Zero-Emission Truck & Bus Voucher Incentive Program (HVIP) Point-of-sale discounts to power California communities and drive commercial technology transformation Works directly with dealers to apply the incentive at time of purchase Learn More
Innovative Small e-Fleets (ISEF) Pilot Program Set-aside of HVIP, offering increased point-of-sale discounts for small fleets.  Funding available for standard purchases, lease, rental, truck-as-a-service options, and other mechanisms. Open for new voucher requests beginning August 30, 2023.  Learn More
Low Carbon Fuel Standard (LCFS) Program established to reduce the carbon intensity of transportation fuel used in California Participants generate credits through fuel pathways, projects, and capacity‐based crediting Learn More
EnergIIZE Commercial Vehicles Energy infrastructure incentives for zero-emission commercial vehicles Nation's first commercial vehicle fleet infrastructure incentive project Provides a user-friendly and streamlined process for participation by breaking down infrastructure deployment barriers through targeted incentives and specialized assistance Learn More
Carl Moyer Program Incentivizes replacing existing vehicles and equipment with clean technologies Local air districts administer Carl Moyer Program grants and select projects to fund Learn More
Low Carbon Transportation Investments Program Funding for new on-road technologies through zero-emission demonstration projects Provides necessary support to achieve commercialization Supports the Hybrid & Zero-Emission Truck & Bus Voucher Incentive Program (HVIP) Learn More
Volkswagen Environmental Mitigation Trust Funding primarily for "scrap and replace" projects for the heavy-duty sector, including freight trucks, transit, shuttle, school buses and other freight vehicles and equipment Learn More
Voucher Incentive Program (VIP) Funding opportunities for fleet owners with 10 or fewer vehicles to replace their older on-road heavy-duty diesel vehicles Learn More
Community Air Protection Incentives for On-Road Heavy-Duty Vehicles Funding budgeted by the California legislature to incentivize turnover and improve air quality in communities of concern Directed by local air districts Learn More
Heavy-Duty Demonstration and Pilot Projects State funding enables demonstrations of the latest on-road clean transportation technology Projects showcase the new technologies and advance commercial viability through pilot projects All projects are located in or will benefit disadvantaged communities Learn More