California Governor Gavin Newsom has announced that the state is prepared to intervene if President-elect Donald Trump eliminates the federal electric vehicle (EV) tax credit, which provides significant incentives for purchasing clean-energy vehicles. The tax credit, implemented under President Biden as part of the Inflation Reduction Act of 2022, offers up to $7,500 for new electric, plug-in hybrid, or fuel-cell vehicles and up to $4,000 for used ones.
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In a statement released on Monday, Newsom emphasized California’s commitment to green energy and clean air:
“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay. 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.”
Trump has expressed mixed feelings about the tax credit, acknowledging his support for a variety of vehicle technologies, including electric, gasoline, and hybrid cars. Speaking in August, he said:
“I’m not making any final decisions on it. I’m a big fan of electric cars, but I’m a fan of gasoline-propelled cars, and also hybrids and whatever else happens to come along.”
While many Republicans have criticized Biden’s push for a transition to electric vehicles, Trump’s stance has been relatively moderate, partly due to his alliance with Tesla CEO Elon Musk during his re-election campaign.
If the federal EV tax credit is revoked, Newsom may work with the California Legislature to reinstate a state rebate program for EV buyers. California previously phased out such a program in 2023 but remains committed to advancing clean transportation. The state has set a goal to ban the sale of new gas-powered cars by 2035, reinforcing its role as a leader in environmental policy.
