SACRAMENTO, Calif. (AP) — If the federal EV tax credit is eliminated by the incoming Trump administration, California may provide state tax rebates for EV sales, Governor Gavin Newsom announced Monday.
According to a statement from Newsom’s office, Newsom would suggest developing a new iteration of the state’s popular Clean Vehicle Rebate Program, which was phased out in 2023 after financing 594,000 automobiles and saving 456 million gallons of fuel.
The Greenhouse Gas Reduction Fund, which is financed by polluters under the state’s cap-and-trade program, may provide funding for the new rebate scheme, the statement said.
How much the initiative will cost and how the rebates would operate were not disclosed by officials. Newsom is anticipated to provide additional information about the potential rebate program when he visits Kern County later on Monday.
California is now among the top states in the US for clean automobiles, having sold over 2 million zero-emission cars.
Donald Trump pledged during his campaign to eliminate federal EV tax credits, which can total up to $7,500 for brand-new EVs. Additionally, used ones are eligible for a $4,000 credit. However, Trump eventually changed his mind once Elon Musk, the CEO of Tesla, joined him as an advisor and supporter.
Electric vehicle reimbursements of up to $2,500 were available under California’s now-defunct Clean Vehicle Rebate Program.
According to the statement, any new rebate program would have modifications to encourage competition and innovation in the market for zero-emission automobiles.
The Associated Press, 2024. All rights reserved. All rights reserved. It is prohibited to publish, broadcast, rewrite, or redistribute this content without authorization.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!