Newsom Looks To Restart EV Tax Credits If Federal Program Ends

Governor Gavin Newsom discusses electric vehicles push

Sacramento, CA — California may again start offering its own tax credit for the purchase of electric vehicles if the federal credit is eliminated by the incoming Trump Administration.

Governor Gavin Newsom says, “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.”

California previously had its own EV Tax Credit program, but it was phased out in 2023. Newsom says it helped with the purchase of over 594,000 vehicles.

The state is facing a projected $2 billion budget shortfall next fiscal year. Newsom says the EV program would be funded through the state’s cap-and-trade greenhouse gas reduction program.

President-elect Donald Trump has hinted that he may do away with the federal tax credit that provides up to $7,500 for new zero-emission vehicle purchases and $4,000 for used electric vehicles.

California’s previous Clean Vehicle Rebate program offered credits up to $2,500. Governor Newsom has not released specific amounts for a proposed revamp of the initiative.

Newsom previously set a directive for all new car sales in the state to be electric by 2035.