California will offer rebates for electric cars if Trump cancels federal tax credits

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California is committed to zero-emission vehicles, even if the federal mood changes.

Gov. Gavin Newsom, a Democrat, said Monday that if the incoming Trump administration reduces the $7,500 tax credit, he will propose rebates to eligible residents who buy electric vehicles.

“We will not retreat from the future of clean transportation, but rather we will make driving non-polluting vehicles more accessible to people,” Newsom said in a statement. statement.

President Joe Biden provided the tax break under the bipartisan Inflation Reduction Act, but the incoming Trump administration is strongly considering cutting the program as part of broader tax reform.

Newsom said he would propose a new version of California’s clean vehicle rebate program, which was phased out in 2023 but has financed more than 594,000 vehicles in its lifetime. The proposed rebates could come from the Greenhouse Gas Reduction Fund, which polluters finance under the state’s emissions trading program.

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