California Weighs Making Electric Cars Cheaper Right Off the Lot

The federal tax credit for electric car purchases has an end in sight, but California doesn’t want demand for the zero-emissions vehicles to meet the same fate.

The state, long a champion of electric cars, is considering a bill to provide rebates to electric vehicle buyers at the time of purchase, reducing the sale price right as customers drive off the lot. The bill, which does not specify the size of rebates but proposes giving more cash to low-income buyers, looks to set aside as much as $3 billion for the incentives.

If passed, the program could help bridge the ...