Sacramento, California – Governor Gavin Newsom of California announced a proposal to provide $7,500 state EV tax rebates to residents in the event that the federal EV tax credit is eliminated by President-elect Donald Trump. Newsom’s initiative aims to incentivize the adoption of electric vehicles in the state.

The proposal comes as a response to Trump’s plans to end the federal EV tax credit, which would impact automakers like Tesla. Despite Tesla’s exclusion from the California state EV tax rebate due to its headquarters relocation to Texas, CEO Elon Musk expressed dissatisfaction with the decision on social media.

The state’s Clean Vehicle Rebate Program, initially introduced in 2010 and phased out in 2023, is set to be revived under Newsom’s proposal. The program, which previously offered rebates of up to $7,500 for EVs, was successful in promoting the use of cleaner vehicles and reducing fuel consumption.

Funding for the state EV tax rebates is expected to come from the Greenhouse Gas Reduction Fund, which is supported by polluters under California’s cap-and-trade program. Newsom emphasized the state’s commitment to environmental sustainability and the creation of green jobs through the promotion of clean transportation options.

California has been a leader in zero-emission vehicle adoption, with over 2 million electric, plug-in hybrid, and hydrogen-powered vehicles sold across the state. By 2035, the state aims to have all new cars and light trucks sold to be zero-emission vehicles, along with 50% of new heavy trucks.

To further encourage the transition to cleaner transportation options, Newsom’s proposal seeks to make EVs more affordable for consumers. The governor will be working with the state legislature to finalize the details of the rebate program and ensure its successful implementation.

Overall, Newsom’s efforts reflect California’s ongoing commitment to reducing emissions, promoting sustainable practices, and leading the way in the adoption of environmentally friendly technologies. With the potential reinstatement of the state EV tax rebates, residents can look forward to more incentives to choose cleaner transportation options in the future.