“California Governor Gavin Newsom Vows to Protect EV Tax Credits Amid Trump Administration Threats”
California Governor Gavin Newsom has made a bold pledge to support the state’s residents in the face of potential changes to federal environmental policies under the incoming Trump administration. President-elect Donald Trump has indicated his intention to eliminate the federal tax credit of $7,500 for individuals who purchase electric vehicles (EVs) in the United States.
In response to this threat, Governor Newsom has vowed to step in and provide credits to eligible California residents who purchase zero-emissions vehicles if the federal tax credit is eliminated. This move is part of Newsom’s commitment to promoting clean air and green jobs in California, as reported by The New York Times.
California officials are preparing for a potential battle with the incoming Republican administration over environmental policies, including auto emissions standards and immigration issues. Newsom has already called for a special state legislative session to discuss increased funding for litigation and other agenda items, as California has sued the Trump administration more than 120 times during Trump’s first term.
While Trump does not have the unilateral authority to eliminate the federal EV tax rebates, his transition team has expressed a desire to do so. The tax rebates are currently part of the 2022 Inflation Reduction Act (IRA), and any changes would require congressional action.
The potential elimination of the federal tax credit could have significant implications for the EV market. California has previously run a successful rebate program from 2010 to 2023, which helped fund over 594,000 vehicles and save more than 450 million gallons of fuel. Governor Newsom has indicated that he would propose restarting this program if the federal credit is eliminated.
The threat to the EV market is also a concern for the fossil fuel industry, a major donor to Trump’s presidential campaign. EV sales and production growth pose a challenge to traditional gas-powered vehicles and could disrupt the fossil fuel industry’s dominance.
Overall, Governor Newsom’s commitment to supporting clean transportation and green initiatives in California remains steadfast, despite potential challenges from the incoming administration. The state’s residents and environmental advocates will be closely watching developments in the coming months as the battle over environmental policies unfolds.