Gov. Gavin Newsom (D-CA) said Monday that if President-elect Donald Trump eliminates federal electric vehicle tax credits, California would provide rebates for residents who purchase EVs.
“Consumers continue to prove the skeptics wrong — zero-emission vehicles are here to stay. 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 said in a statement. “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.”
If the Trump administration scraps the federal $7,500 tax credits for EV purchases, Newsom said he would propose a new version of the state’s Clean Vehicle Rebate Project, which ended in 2023. The program funded more than 594,000 vehicles and offered rebates from $1,000 to $7,500 for the purchase or lease of new, eligible zero-emission vehicles.
The proposed rebates would be financed from the Greenhouse Gas Reduction Fund, which is funded by contributions to the state’s cap-and-trade program from polluters.
The Trump administration transition team plans to eliminate the $7,500 consumer tax credit for electric vehicle purchases as part of tax reform legislation, Reuters reported earlier this month.
The tax credits were expanded and reformed by the Biden administration’s Inflation Reduction Act. There have been talks about what parts of the legislation would be repealed by Republicans, who will control both chambers of Congress.
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The statement comes as Newsom announced earlier this month that California legislators would conduct a special session to “protect” the state from the Trump administration.
“The freedoms we hold dear in California are under attack — and we won’t sit idle. California has faced this challenge before, and we know how to respond,” Newsom said in a statement. “We are prepared, and we will do everything necessary to ensure Californians have the support and resources they need to thrive.”