Newsom says California will step in if Trump eliminates $7,500 EV tax credit

On November 26, 2024By Pranco

California Governor Gavin Newsom (D) said Monday that the state of California will intervene if President-elect Trump eliminates the electric vehicle tax credit passed under President Biden.

“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a statement statement Monday. “We will act if the Trump Administration eliminates the federal tax credit, redoubling our commitment to clean air and green jobs in California.”

Under current law, consumers can receive a tax credit of up to $7,500 for new electric, plug-in hybrid or fuel cell vehicles and up to $4,000 for a used one. Trump has done that before said he hasn’t made a decision yet on the fiscal stimulus measures, which were part of the Inflation Reduction Act of 2022.

“I’m not making any final decisions on it,” Trump said said in August. “I’m a big fan of electric cars, but I’m also a fan of petrol cars, and also hybrids and whatever else is coming onto the market.”

While many Republicans were highly critical of Biden’s attempts to shift the market towards more electric vehiclesTrump has taken one softer tone since joining billionaire and Tesla founder Elon Musk in his re-election campaign.

Newsom would need support from the California Legislature to restart the proposed rebate program, which was previously phased out in 2023. The state continues to set clean car standards, with the goal prohibiting sales of new gas-powered cars by 2035.

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