California Gov. Gavin Newsom said the state could provide rebates for electric vehicle purchases if the incoming Trump administration eliminates the federal tax credit.
In a news release issued Monday, Newsom proposed creating a new version of California’s Clean Vehicle Rebate Program after the initial program funded over 594,000 vehicles and saved residents over 456 million gallons of fuel. The original program was phased out in 2023.
Money for the proposed program “could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.” according to the governor.
Officials didn’t share how much the program would cost or how the rebate would work. Newsom is expected to offer more details about the proposed program during an appearance in Kern County later Monday, The Associated Press reported.
So far, over 2 million zero-emission vehicles have been sold in the Golden State.
While on the campaign trail, President-elect Donald Trump vowed to end federal EV tax credits worth 7,500 for new EVs and $4,000 for used ones. His stance on the topic softened once Tesla Chief Executive Elon Musk became a supporter and advisor.
The credits were implemented as part of the Inflation Reduction Act that President Joe Biden signed into law in 2022.
“We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.” Newsom said in a statement.