California could offer state tax rebates for electric vehicle (EV) purchases if the incoming Trump administration eliminates the federal EV tax credit, the state’s governor said on Monday.
Gavin Newsom will propose creating a new version of the state’s successful Clean Vehicle Rebate Program, which was phased out in 2023 after funding 594,000 cars and saving 456m gallons of fuel, the governor’s office said in a statement.
Money for the new rebate system “could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program”, according to the statement.
Officials did not say how much the program would cost or how the rebates would work. Newsom is expected to offer more details of the possible rebate program during an appearance in Kern county later on Monday.
California has surpassed 2m zero-emission vehicles sold, making the state one of the national leaders in clean vehicles.
While campaigning, Donald Trump vowed to end federal EV tax credits, which are worth up to $7,500 for new EVs. There is also a $4,000 credit for used ones. But Trump later softened his stance as Elon Musk, Tesla’s chief executive, became a supporter and adviser.
California’s defunct Clean Vehicle Rebate Program offered rebates on electric cars as high as $2,500.
Any new rebate program “would include changes to promote innovation and competition” in the zero-emission vehicles market, the statement said.