Urgent News for California Fleets: Apply for HVIP Incentives Today
Author: Nahui Olin, Lead, Fleet Incentives, Nikola
Fleet owners in California should act now to benefit from substantial financial assistance under a statewide incentive offered on a first-come, first-serve basis. The Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) is undergoing major changes that were approved in November 2023, which may impact the transition from diesel-powered Class 8 vehicles to zero-emissions vehicles (ZEVs).
Fleets of 50 trucks or more will no longer be eligible to apply to HVIP, effective January 1st, 2025. By applying today, you will be granted up to 18 months to make your new vehicle purchases with no scrappage requirements. For smaller fleets (fewer than 20 trucks and less than $15 million in annual revenue), you can stack incentives to receive up to 90% of the cost per vehicle in savings.
We encourage you to stay informed about the latest changes and act quickly on these limited opportunities. Contact a Nikola representative or an authorized dealer to begin your application process today.
HVIP Funding Closing for Large Fleets Opens Opportunities Today
Starting January 1st, 2025, fleets with 50 or more trucks will no longer be eligible for California’s HVIP funding. This change creates a fresh urgency for large private fleets to take advantage of substantial vouchers that pave the way for the industry’s broader push toward sustainability.
The good news for fleet owners facing this critical change with HVIP is that eligible fleets who complete the application process and are approved before 2025 will have 18 months to take possession of new trucks.
Apply today before the change goes into effect and utilize the voucher anytime within the delivery window. Most large fleets may request up to 30 vouchers per calendar year while drayage operators may request up to 50. Further, if all approved vouchers are redeemed before the end of the year, fleet owners may apply for additional vouchers.
Take Advantage of No Scrapping Requirements
California HVIP has no scrappage requirements; therefore, large fleets do not need to scrap existing vehicles to qualify for incentives. However, once the HVIP eligibility period ends, large fleet owners may face different guidelines under other state and local incentives to qualify for additional types of funding. By transitioning your fleet today, you can avoid any complicated conditions when replacing or upgrading older diesel trucks.
The current HVIP incentives for large fleets can reduce the cost of ownership for zero tailpipe emissions vehicles. Both the Nikola Tre battery-electric vehicle (BEV) and the Tre fuel-cell electric vehicle (FCEV) are eligible for HVIP vouchers, so working with a Nikola representative today can get you started on the right track before the end-of-year deadline arrives.
Small Fleets Can Save Even More, Up to 90% with Stacked Incentives
Meanwhile, the change for small fleets will result in greater support from HVIP, allowing you to take substantial steps toward zero-emissions operations at a fraction of the cost.
In November 2023, the California Air Resources Board (CARB) made meaningful changes to the HVIP program. Small fleets, defined as 20 or fewer trucks, with an annual revenue of less than $15 million, now have access to double the base award, significantly increasing the financial support available (California HVIP) (California Air Resources Board).
Designed to lower the cost barrier to entry through significant financial assistance, the funding per ZEV for small fleets can be up to 90% of the cost in certain cases. For example, the base HVIP award is currently $120,000, but small fleets can now receive up to a $240,000 base. For a hydrogen fuel cell truck, the incentive can be even greater with small fleets getting up to $480,000 off the purchase price.
California also has other statewide incentives, such as the Volkswagen (VW) Environmental Mitigation Trust, which can be combined with the HVIP voucher to further increase benefits by covering sales tax and the federal excise tax (FET). While this incentive does require replacing diesel trucks, a fleet can theoretically receive 90% off the vehicle cost with California HVIP while also having sales tax and FET paid by the local program.
Nikola Can Help You Start the Application Process Today
Own a fleet? If so, one of the most important actions you can take is to contact a Nikola dealer to immediately get started on the application process. Whether you have a large or small fleet, these incentives are available on a first-come, first-served basis with no guarantee they will be offered at a later date.
The number of vouchers and funding are limited. Once allocated funds are exhausted, no more incentives may be available until additional funding is provided, if at all. Start by taking two recommended steps.
Step 1: Check Your Fleet Compliance Status for Faster Processing
To avoid delays in the application process, you should ensure that all your trucks comply with existing laws. Fleet allocation discrepancies or other non-compliance issues can delay vouchers and vehicle delivery.
Step 2: Connect with a Nikola Dealer to Handle Your HVIP Application
The amount of information on incentives can be overwhelming and discouraging at times, but with California HVIP, there is less footwork for fleets in the application process. Local dealers are required to take HVIP training and can guide truck purchasers step-by-step through the process.
Have compliance questions? Not sure about eligibility? A California-based Nikola dealer can answer all questions and submit the HVIP voucher on behalf of your fleet, ensuring the process is done correctly and that an immediate price reduction is received at the point of sale.
California Fleet Owners Should Act Now on These Game-Changer Rules
The HVIP program is a game-changer for California fleet owners, and the Nikola Tre BEV and Tre FCEV are eligible for HVIP vouchers. Nikola is proud to be on the cutting edge, being the first manufacturer to offer both battery and hydrogen-powered Class 8 trucks through this incentive program. Whether a large or small fleet owner, you can secure these valuable incentives by contacting a California Nikola dealer to start the process today.