REE’s P7-C electric truck receives CARB credits, eligible for over $100k in incentives


EV technology startup REE Automotive announced its latest milestone today, having been awarded two separate CARB certifications for its P7-C chassis cab. Now sales eligible in California, “Powered by REE” EVs are eligible for huge incentives, with other CARB-friendly states expected to follow suit.

Today’s news confirms expected results from REE Automotive ($REE) as its “x by wire” P7-C EV continues its journey toward scaled commercial deployment.

A mere two years ago at CES, the EV startup first introduced its modular P7 platform, designed with fleets in mind – particularly delivery operators in the US. Since then, we’ve seen REE unveil two all-electric variants – a novel Class 3 box truck called the P7-B and an additional chassis cab called the P7-C (seen above).

Ahead of production, REE has reported tens of millions in binding orders from commercial customers. It recently wooed more potential suitors when it showcased a demo EV during Work Truck Week earlier this month.

In January, we reported that REE’s P7-C had achieved certification from both the Federal Motor Vehicle Safety Standards (FMVSS) and EPA ahead of initial deliveries, the first full steer-by-wire, brake-by-wire, and drive-by-wire vehicle in the US to do so.

At the time, REE shared that the electric chassis cab is eligible for the IRS’ Commercial Clean Vehicle Tax Credit in the US, enabling a tax credit of up to $40,000 per vehicle. Furthermore, REE said it was in the process of obtaining eligibility for various state incentives, including the California Air Resources Board (CARB), offering the potential to bolster those incentives upwards of $100,000 per vehicle.

Today, REE has confirmed that the P7-C has been awarded eligibility for two separate CARB certifications, further incentivizing commercial fleets to purchase.

REE now qualifies for CARB credits in CA, more to come

Per REE, its Class 4 P7-C EV has officially been made eligible for two certifications from CARB – a Phase 2 Greenhouse Gas (GHG) certification covering the complete vehicle and the Zero Emission Powertrain (ZEP) certification.

CARB certification is a vital factor in enabling state incentives to commercial customers. Although the certificates originate and are awarded in California, several other states follow The Golden State’s lead in policy and honor the same incentives to promote electrification and sustainability. REE co-founder and CEO Daniel Barel spoke about the P7-C’s latest milestone:

Being CARB certified unlocks many doors for us and for our customers as we can now sell in California, and I am excited for our California dealers as they start to receive their Powered by REE trucks. This is an important milestone since now Powered by REE vehicles can receive more than $100,000 incentive funding which makes it even easier for fleets to electrify. We believe that this cost savings, combined with our REEcorner and x-by-wire technology’s ability to lower total cost of ownership, will boost even further the strong demand we see for our P7 lineup.

Combined with incentives in place at the federal level, CARB certification now gives REE EVs the potential to over $100,000 per vehicle – a huge selling point for fleets who are looking to purchase several commercial EVs at a time as they transition to zero emissions.

Looking ahead, REE says several other states have indicated plans to follow California’s lead in adopting CARB’s Advanced Clean Truck Regulation, a sales requirement, alongside ZEP certification to sell the EVs locally and offer such large incentives.

REE says it will continue to deliver initial EV builds to early customers through its growing dealer network while continuing to take its all-electric show on the road with its demo trucks.

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