California plans to introduce electric vehicle rebates if former President Trump eliminates federal tax credits for EV buyers
California is dedicated to implementing zero-emission vehicles, regardless of any changes in federal policy.
Gavin Newsom, the Democratic governor of the state, announced on Monday that he will propose rebates for eligible residents who purchase electric vehicles if the impending Trump administration reduces the $7,500 EV tax credit.
Newsom stated that “we are not abandoning the vision of a clean transportation future; we are committed to reducing the cost of operating vehicles that emit no pollutants.”
President Joe Biden initially introduced the tax credit as part of the bipartisan Inflation Reduction Act. However, the incoming Trump administration seriously contemplates eliminating the program as part of a more comprehensive tax reform.
Newsom stated that he would suggest a new iteration of California’s Clean Vehicle Rebate Project, which was discontinued in 2023 but provided funding for over 594,000 vehicles during its tenure.
The Greenhouse Gas Reduction Fund, funded by polluters under the state’s cap-and-trade program, could be the source of the proposed reimbursements.
