Sacramento scales back electric vehicle parking discount. Who will be affected?
Starting July 1, Sacramento will end its 50% parking discount for some electric vehicle drivers, limiting the incentive to drivers who qualify as low-income.
This initiative began in 1994 in the form of a free monthly EV parking program, which was then reduced to a 50 percent discount once 5% of total city-owned garage transactions were from EV drivers.
Near the end of 2024, electric vehicles made up a quarter of all new car sales, according to a January report by the Sacramento Electric Vehicle Association. Governor Newsom’s Zero Emission by 2035 Executive Order (N-79-20) mandates that zero-emission vehicles make up 100 percent of all new car sales by 2035.
Gabby Miller, a spokeswoman from the city’s transportation department, explained that the rollback reflects the growing number of EVs on the road. The City is now “focusing the EV parking discount on helping low-income residents,” she wrote, adding that the goal is to make the program more equitable while continuing to support sustainability efforts.
Currently, 189 people receive the discount, which applies to city-run garages including Capitol Garage, City Hall Garage, Memorial Garage, Old Sacramento Garage, and Tower Bridge Garage. Under the new policy, eligibility is limited to households earning less than 300% of the federal poverty level or receiving public assistance.
The policy change has sparked mixed reactions.
On the California State Workers subreddit, one user said they plan to switch to public transit, describing the shift as a logistical headache for their family. Others called the policy ironic, noting that most low-income residents still can’t afford electric vehicles — so the discount may go largely unused.
The rollback comes amid other changes to EV incentives.
On September 30, California will end its Clean Air Vehicle decal program, which allows solo drivers of low-emission vehicles to use carpool lanes.
Meanwhile, the Sacramento Municipal Utility District is installing EV chargers at 11 multifamily housing sites, expected to benefit more than 900 households. They also offer income-qualified EV purchase rebates and free home charger installation.
Susan Handy, professor of environmental science and policy at UC Davis, believes the 50 percent parking discount was likely never a major driver of EV adoption — unlike rebates, charging access and HOV lane privileges.
Ultimately, the incentives will build momentum. The higher the demand and production, Handy said, the lower the cost. “Eventually, prices come down to be as reasonable as a regular internal combustion engine vehicle.”