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California provides incentives that can significantly lower the initial cost of replacing diesel-powered Class 8 freight vehicles with zero-emissions alternatives. These programs seek to accelerate the transition to cleaner technology, improve air quality, and achieve the state’s lofty environmental objectives.
Key programs include the Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP), which offers huge vouchers of ranging from the standard $120,000 Class 8 award up to $576,000 for qualified vehicles such as the Nikola Tre battery-electric vehicle (BEV) and the Tre fuel-cell electric vehicle (FCEV).
The actual incentive amount per vehicle may vary depending on the fleet profile.
Additionally, various grants and rebates are available to further alleviate the financial burden on California fleet operators. But it’s important to act now as some of these incentives have limited funding and are offered on a first-come, first served basis.
CALIFORNIA INCENTIVES
CALIFORNIA HVIP
Description: California HVIP offers funding statewide on a first-come, first-served basis to replace diesel-powered Class 8 Freight and Port Drayage Trucks with zero-emissions alternatives.
Eligibility: Public agencies, businesses, and non-profits in California.
Incentive Type: Point-of-Sale Voucher
Application Process:
• Check eligibility and select qualified vehicles.
• Apply threw a a participating dealer.
Additional Information:
• Nikola Quick Facts on HVIP for FCEV’s
• Nikola Quick Facts on HVIP for BEV’s
• Nikola Quick Facts on HVIP for Small Fleets
*Additional requirements may apply. For complete incentive requirements,
please visit the program website (links above).
California VW Mitigation Trust
Description: California VW Mitigation Trust offers funding statewide on a first-come, first-served basis to replace diesel-powered Class 8 Freight and Port Drayage Trucks with zero-emissions alternatives.
Eligibility: Public agencies, businesses, and non-profits in California.
Incentive Type: Grants
Application Process:
• Check eligibility and select qualified vehicles.
• Submit a proposal trough the application portal.
Additional Resources:
• Nikola Quick Facts on California VW Mitigation Trust.
*Additional requirements may apply. For complete incentive requirements,
please visit the program website (links above).
San Joaquin Valley AQMD Heavy-Duty Truck Program
Description: Funding to replace or retrofit older heavy-duty trucks to reduce emissions.
Eligibility: Fleet owners in the San Joaquin Valley
Incentive Type: Grants
Application Process:
• Review eligibility and program guidelines
• Submit an application through the San Joaquin Valley Air Pollution Control District.
Additional Resources:
• Nikola Quick Facts on San Joaquin Valley AQMD Heavy-Duty Truck Program
• San Joaquin Valley AQMD Heavy-Duty Truck Program Guidelines
*Additional requirements may apply. For complete incentive requirements,
please visit the program website (links above).
What do you want to know about FCEVS?
Fleets/purchasers do not apply for HVIP vouchers directly. HVIP-eligible dealers are responsible for securing HVIP funding through the online Voucher Processing Center.
Purchasers should connect with HVIP-approved dealers to acquire their Nikola vehicle and the dealer will take the lead to acquire the voucher.
Yes. Starting January 1, 2024, consistent with the Advanced Clean Fleet Regulation (ACF), HVIP’s fleet size definition will include ALL vehicles owned directly or under common ownership, including those domiciled or operated outside of California.
There are different requirements depending on fleet size, including flexibility for stacking with other state incentive programs, bulk purchase requirements, and voucher adjustments.
Small Fleets of 20 or fewer MD- and HD-vehicles and with less than $15 million in annual revenue are eligible for double base incentive values.
To help you navigate potential HVIP award values, please connect with a HVIP-approved dealer.
Yes. Fleets may request up to 30 vouchers per calendar year.
Drayage fleets may request 50 vouchers per calendar year.
Requests that are redeemed within the same year they are requested do not count against the cap. (In other words, if a fleet requests 30 vouchers in a year, and takes delivery of those 30 trucks via redeeming those 30 vouchers, they may request additional vouchers in that same calendar year).
Yes. Small Fleets of 20 or fewer MD- and HD-vehicles may stack California HVIP with local incentives. Eligible programs include, but are not limited to California VW Mitigation Trust, Sacramento Emergency Clean Air Transportation (SECAT) Program, San Diego County Zero-Emissions Truck Pilot Project, San Joaquin Valley APCD Heavy Duty Truck Program, among others.
Lastly, drayage operators serving the Port of Los Angeles and/or Port of Long Beach may be eligible for additional stackable funding.
Eligible fleets may combine HVIP and local incentive funding to cover up to 90% of the cost of a new zero-emissions vehicle.
To combine funding, the program requirements from both funding programs must be met.
Sounds complicated? Nikola can guide you through the process.
Want to speak to a sales representatives about incentives available or discover more about our zero-emission Class 8 semi-trucks?
Please fill out the form below.
*Additional requirements may apply. For more details, visit applicable incentive website. Does not constitute tax advice. Please consult your tax advisor.