Governor Gavin Newsom of California proposed reviving an electric vehicle rebates if the federal tax credit for electric car buyers is eliminated by the incoming Trump administration.
The big picture: Newsom’s pitch involves creating a new version of the state’s Clean Vehicle Rebate Program, which had funded 594,000 cars and saved 456 million gallons of fuel before it phased out in 2023.
- Newsom, in his announcement, emphasized the resilience and growth of zero-emission vehicles, stating that consumers continue to support clean transportation.
- The proposal aligns with Newsom’s strategy to safeguard California’s progressive policies against potential rollbacks during the Trump administration, as he called for a special legislative session to “Trump-proof” state laws.
- Even though California faces a projected $2 billion budget deficit, Newsom plans to fund the rebate program using the state’s Greenhouse Gas Reduction Fund sourced from polluters under the cap-and-trade program.
- Specific details regarding the cost and workings of the rebate program have not been disclosed yet, with Newsom expected to unveil more information during an appearance in Kern County.
- California has sold over 2 million zero-emission vehicles, showcasing the state’s commitment to transitioning away from fossil fuel-powered transportation.
- President Trump previously considered ending federal electric vehicle tax credits but softened his stance after support from Tesla CEO Elon Musk.
- The proposed rebates by Newsom could potentially exclude certain automakers to promote market competition and innovation, a decision that would be negotiated with the state Legislature.
- Trump criticized Newsom for calling a special legislative session, citing issues like California’s high cost of living and homelessness crisis. Newsom expressed reaching out to Trump after the election but had not heard back from him.
