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California Could Offer Credits for EV Purchases if Federal Ones Are Eliminated

A Kia Niro EV, in California | Photo: D.Boshouwers
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Daniel Rufiange
California is determined to stay the course on its electric shift.

California Governor Gavin Newsom announced that the state could offer incentives for the purchase of electric vehicles if the future Trump administration eliminates the federal tax credit currently in place.

If that credit is axed, Newsom said he would propose creating a new version of the Clean Vehicle Rebate Program. It was eliminated in 2023 after providing rebates on the purchase of some 594,000 vehicles, resulting in the saving of 456 million gallons of fuel that were not consumed, the governor's office said via a release.

The proposed California rebates, which would include changes to promote innovation and competition in the zero-emission vehicle market, would be funded by “the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program,” according to the release.

“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. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

- Gavin Newsom, Governor of California

Gavin Newsom, in 2022
Gavin Newsom, in 2022 | Photo: YouTube (California Governor Gavin Newsom)

California has surpassed two million zero-emission vehicles sold, reaffirming its status as a national leader in clean vehicles. This milestone comes just over two years after the state passed the one-million mark for zero-emission vehicles sold.

During his campaign, Trump promised to end federal tax credits for electric vehicles, credits that can reach $7,500 for new vehicles. A $4,000 credit is also available for used vehicles.

The president-elect subsequently softened his stance, with Tesla CEO Elon Musk becoming a supporter and advisor. To be continued.

The defunct California Clean Vehicle Rebate Program offered rebates of up to $2,500 on the purchase of an electric vehicle.

In the third quarter of 2024, Californians purchased 115,897 zero-emission vehicles, representing 26.4 percent of all new-vehicle sales in the state. With more electric vehicles on the road every day, including plug-in hybrid solutions, consumers are benefiting from the state's work to build a bigger, better and more reliable charging network.

In Canada, record numbers were also achieved in the third quarter. However, the American situation is being closely monitored - policies there have the power to influence what happens here.

Daniel Rufiange
Daniel Rufiange
Automotive expert
  • Over 17 years' experience as an automotive journalist
  • More than 75 test drives in the past year
  • Participation in over 250 new vehicle launches in the presence of the brand's technical specialists