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Newsom says California will offer rebates on electric vehicles if Trump removes tax credit
Newsom’s proposal is part of his plan to protect California’s progressive policies before Trump assumes office.
California Governor Gavin Newsom has challenged Donald Trump amid the president-elect's proposed plans to eliminate the federal tax credit on electric vehicles. In a statement released Monday, the 57-year-old declared that the state would provide rebates to residents to maintain the momentum of electric vehicle sales.
Newsom challenges Trump's plans to eliminate federal tax credits on electric vehicles
“Consumers continue to prove the skeptics wrong – zero-emission vehicles [ZEVs] are here to stay,” Newsom said in a statement, proposing a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023.
“We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Newsom added.
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Trump previously vowed to eliminate the $7,500 EV tax credit introduced by Joe Biden but softened his stance after Elon Musk, the CEO of Tesla, became his top supporter and ally. The program phased out after funding 594,000 cars and saving 456 million gallons of fuel.
“We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute,” Newsom went on.
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The release also notes that the “proposed California rebates, which would include changes to promote innovation and competition in the ZEV market, could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.”
Newsom’s proposal is part of his plan to protect California’s progressive policies before Trump assumes office.
The Democratic governor called the state Legislature to convene in a special session to help “Trump-proof” state laws by giving the attorney general’s office more funding to fight federal challenges, reported the Associated Press.
