California to Propose EV Rebates Amid Potential Cuts to Federal Tax Credit

Credit: Gage Skidmore/Flickr

California Governor Gavin Newsom reiterated the state’s dedication to zero-emission vehicles on Monday, stating that the state will continue its efforts to support electric vehicle (EV) adoption, even if the incoming Donald Trump administration cuts federal incentives.

Newsom, a Democrat, declared that if the $7,500 EV tax credit, introduced by President Joe Biden under the Bipartisan Inflation Reduction Act, is eliminated as part of the incoming administration’s broader tax reform, California would propose its own rebates for eligible residents purchasing electric vehicles. “Weā€™re not turning back on a clean transportation future ā€“ weā€™re going to make it more affordable for people to drive vehicles that donā€™t pollute,” Newsom said in a statement.

The proposed rebates are expected to be funded by California’s Greenhouse Gas Reduction Fund, which is supported by polluters under the state’s cap-and-trade program. This initiative would replace the Clean Vehicle Rebate Program, which was phased out in 2023 after facilitating the purchase of more than 594,000 vehicles.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important EV News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use