Some of the benefits of owning electric and hybrid vehicles will disappear Wednesday as the federal government is ending programs to provide tax credits to those who purchase low or zero-emission vehicles and allow such cars to use high-occupancy vehicle (HOV) lanes, also known as carpool lanes, in California.
The tax credit program, officially called the New Clean Vehicle Credit, was set to expire Tuesday, no longer providing a tax credit of up to $7,500 to those who purchase new EVs and up to $4,000 to the buyers of used electric or plug-in cars.
For last-minute EV purchases, cars must be bought on or before Sept. 30 either with a binding written contract or a payment on the vehicle, according to the Internal Revenue Service.
LARKSPUR, CALIFORNIA – SEPTEMBER 30: California Clean Air Vehicle decals are displayed on the bumper of an electric vehicle on September 30, 2025 in Larkspur, California. California’s Clean Air Vehicle decal program, which allows solo electric vehicle drivers to use carpool lanes, will expire on October 1 after Congress declined to pass legislation to authorize an extension to keep the program going. Nearly half a million electric vehicle drivers will now be required to meet occupancy requirements in HOV lanes or face a ticket that could be as high as \$490. (Photo by Justin Sullivan/Getty Images)
The Clean Air Vehicle Decal Program that has allowed solo drivers in EVs or hybrid cars to hop on carpool lanes in California will also expire on on Sept. 30 as the federal government, according to the California Department of Motor Vehicles, is ending the Clean Air Vehicle Decal program, While the state has the authorities to create programs, it is required to follow federal regulations.
That means, starting on Oct. 1, even if the drivers who have the “clean air vehicle” decal in the front or back dumper of their car, they will have to obey HOV lanes rules, only being allowed to use carpool lanes when the car is occupied by two or more people to avoid a citation and fine.
The California DMV has stopped accepting applications for the decal program on Aug. 28.
For those who applied for the decal, their application and payment will be returned to them, according to the DMV.
Allison Craig is a passionate sports writer and analyst with a deep love for game strategies, player performances, and the latest trends in the sports world. With years of experience covering football, basketball, tennis, and more, she delivers insightful analysis and engaging content for sports enthusiasts.
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