California Governor Gavin Newsom has made it clear that the state will take action if President-elect Trump moves to eliminate the electric vehicle tax credit established under President Biden.
Newsom emphasized that consumers are proving the skeptics wrong by showing that zero-emission vehicles are here to stay. He stated that California would step in to protect the federal tax credit if the Trump administration attempts to dismantle it, reaffirming the state’s commitment to clean air and green job creation.
As Trump considers tax incentives, California reinforces its commitment to electric vehicles
Currently, consumers are eligible for a tax credit of up to $7,500 for purchasing a new electric, plug-in hybrid, or fuel cell vehicle, and up to $4,000 for a used vehicle.
Trump has previously expressed uncertainty about the future of these tax incentives, which are part of the Inflation Reduction Act of 2022. “I’m not making any final decisions on it,” Trump remarked in August, adding that while he is a supporter of electric cars, he also favors gasoline-powered cars and hybrids, leaving the door open for other developments.
Though many Republicans have criticized Biden’s efforts to promote electric vehicles, Trump has moderated his stance, especially after aligning with Tesla founder Elon Musk in his re-election campaign.
To reinstate the proposed rebate program, which was phased out in 2023, Newsom would need approval from the California Legislature. Meanwhile, the state continues to set ambitious clean car standards, including a plan to phase out the sale of new gasoline-powered vehicles by 2035.
