California’s Hybrid and Zero-Emission Truck and Bus Incentive Project (HVIP) is continuing to provide valuable incentives for fleet electrification in California. The program experienced an unprecedented increase in voucher redemptions surging 177% from 2023 to 2024, with early 2025 data showing this continued upward trajectory. In February 2025 alone, more than 200 HVIP-funded zero-emission trucks and buses were deployed, utilizing $31+ million in incentives.
Funded primarily through proceeds from the Cap-and-Trade Program, HVIP provides point-of-sale discounts to make medium- and heavy-duty zero-emission vehicles (ZEVs) more affordable and accessible for California fleets and businesses. Small businesses and public agencies comprise more than 80% of ZEV orders.
Over the last 15 years, HVIP has provided $754 million to help more than 2,000 participating fleets purchase and deploy 10,000+ clean trucks and buses at a reduced cost. These vehicles, which range from delivery vans to school buses to freight trucks, have logged more 340 million cleaner-air miles, significantly slashing carbon emissions across the state. The program continues to expand its participants and vehicle eligibility, adding more manufacturers and dealers, as well as 167 advanced vehicle models.
Although funding for HVIP is currently closed because funds were exhausted at the end of last year, the California Air Resources Board (CARB) expects that some funding may be available in the third quarter from cancelled vouchers. Additionally, CARB is beginning to develop its FY 2025-2026 annual Clean Transportation Funding Plan, which may allocate new funding for the program depending upon funding from the State budget.
When the MSRC offers Clean Transportation Funding for these categories, it can be combined or “stacked” with HVIP incentives, which can help to substantially offset the cost of these new ZEVs.