Governor Gavin Newsom announced Monday that California will offer $7,500 rebates for electric vehicles if the federal EV tax credit is eliminated by the incoming Trump administration.
Trump’s transition team has signaled plans to prioritize cutting the federal EV tax credit, citing it as a straightforward target for a likely Republican-controlled Congress. The move is framed as a cost-saving measure to help offset the renewal of expiring tax cuts expected under the new administration.
In response, Newsom plans to revive California’s Clean Vehicle Rebate Project (CVRP) to provide an equivalent $7,500 rebate for residents. The CVRP, which ended in 2023, supported over 594,000 EVs and helped save more than 456 million gallons of fossil fuel since its inception in 2010, according to a press release.
The revived rebates would include updates to encourage innovation and competition in the EV market. Funding for the program could come from California’s Greenhouse Gas Reduction Fund, which is financed through the state’s cap-and-trade initiative.
[source: gov.ca.gov]
