The California Air Resources Board has invested $6m into the state's Clean Vehicle Rebate Project to meet the increasing demand for hybrid, electric and zero-emission vehicles.

Commenting on the initiative Air Resources Board chairman Mary D. Nichols said that the initiative helps the state to become an electric vehicle capital of the nation.

"The program is also helping to clean the air and fight climate change by reducing our use of fossil fuels," added Nichols.

Through this initiative, individuals, nonprofits, government entities and businesses can secure about $2,500 state rebate, which can be combined with a $7,500 clean vehicle federal tax credit and various other regional incentives.

The Clean Vehicle Rebate Project is funded by the Air Resources Board and administered statewide by the California Center for Sustainable Energy.

This funding will also support and facilitate the rapid commercialization of zero-emission vehicles (ZEVs), with a target of having 1.5 million ZEVs on California roadways by 2025.