California Gov. Gavin Newsom (D) said Monday the state of California will intervene if President-elect Trump eliminates the electric vehicle tax credit passed under President Biden.
“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a statement Monday. “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.”
Under the current law, consumers can receive a tax credit of up to $7,500 for a new electric, plug-in hybrid or fuel cell vehicles and up to $4,000 for a used one. Trump has previously said he hasn’t made up his mind on the tax incentives, which were part of the Inflation Reduction Act of 2022.
“I’m not making any final decisions on it,” Trump said in August. “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 been highly critical of Biden’s efforts to shift the market toward more electric vehicles, Trump has taken a softer tone since aligning with billionaire and Tesla founder Elon Musk on his re-election campaign.
Newsom would need the support of the California Legislature to restart the proposed rebate program that was previously phased out in 2023. The state continues to set clean car standards, with the goal of banning the sale of new gas-powered cars by 2035.