The Clean Transportation Incentives Funding Plan is a crucial driver behind California’s push for sustainable mobility. Administered by the California Air Resources Board (CARB), this annual plan allocates hundreds of millions in funding to accelerate the adoption of zero-emission vehicles (ZEVs), improve air quality, and support equity in clean transportation.

In 2025, the focus is clearer than ever: cut emissions, improve access, and drive innovation. Here’s what you need to know.

What Is the Clean Transportation Incentives Funding Plan?

Each year, CARB releases a plan detailing how it will distribute funds from the Low Carbon Transportation Investments and Air Quality Improvement Program (AQIP). This includes incentives for:

• Electric and hydrogen vehicles (cars, trucks, buses)
• Charging and fueling infrastructure
• Clean mobility options for low-income and disadvantaged communities
• Workforce development in the clean transportation sector

The plan aims to reduce greenhouse gas emissions while promoting economic opportunity—particularly for communities most impacted by pollution.

Key Programs Funded in 2025

Some flagship programs under the plan include:

• Clean Vehicle Rebate Project (CVRP): Offers rebates for consumers who purchase or lease eligible new zero-emission vehicles.
• Clean Cars 4 All: Helps low-income drivers replace older, high-polluting vehicles with clean alternatives.
• Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP): Provides point-of-sale discounts for fleet operators adopting zero-emission trucks and buses.
• Sustainable Transportation Equity Project (STEP): Funds community-led solutions to increase transportation access.

These programs are targeted not just at reducing emissions, but also at ensuring equitable access to clean transportation.

Why It Matters

Transportation is the largest source of greenhouse gas emissions in California. Electrifying this sector is essential to meet the state’s climate goals. But it’s not just about environmental impact—these incentives help lower the cost barrier for individuals and businesses looking to switch to clean transportation.

With billions already invested and more coming through federal and state funding, the 2025 plan is a golden opportunity to make clean mobility the standard.

Final Thoughts

If you’re considering switching to a ZEV or upgrading your fleet, now is the time to act. Stay informed through CARB’s updates and program-specific websites. The Clean Transportation Incentives Funding Plan isn’t just about cleaner air—it’s about building a more equitable and sustainable California.