California Gov. Gavin Newsom said the state would offer rebates to residents if President-elect Donald Trump’s administration eliminates federal tax credits for electric vehicles.
In a news release issued Monday, Newsom announced the state’s Clean Vehicle Rebate Program, which will provide financial incentives to more than 590,000 vehicles before being phased out in late 2023. He said he would reopen.
“If the Trump Administration eliminates federal tax credits, we will step in and strengthen California’s commitment to clean air and green jobs,” Newsom said. “We’re not going back on a clean transportation future. We’re going to make it more affordable for people to drive non-polluting vehicles.”
Federal rebates on new and used electric vehicles were introduced in the Anti-Inflation Act signed into law in 2022 by President Joe Biden. When President Trump’s second term begins next year, he could work with Congress to change the rules around these kickbacks. These potential changes could limit federal rebates by reducing the amount available or limiting who is eligible.
Limiting federal subsidies for electric vehicle purchases would hurt many U.S. automakers, including Ford, General Motors and EV startup Rivian. Tesla, which also makes cars in the U.S., currently sells more EVs than any other EV maker and has higher profit margins, so the blow will be smaller.
Earlier this month, Newsom announced he would convene a special session of Congress in December “to protect California values,” including basic civil rights and reproductive rights, saying those rights “are under attack by the incoming administration.” said.
“Whether it’s fundamental civil rights, reproductive freedom or climate action, we cannot turn back the clock or face attacks on our values and laws,” Newsom said on November 7. “I refuse to allow it,” he said in X.
President Trump’s press secretary did not respond to a request for comment.
This is not the first time California has taken action against the Trump administration over the Clean Transportation Act.
In 2019, California and 22 other states sued the administration to revoke its authority to set greenhouse gas emissions standards and vehicle fuel efficiency standards, the Associated Press reported.
The Los Angeles Times reported that California filed more than 100 lawsuits during the Trump administration’s first term, primarily on issues such as gun control, health care, education and immigration.
