California Gov. Newsom commits to zero-emission vehicles tax rebates if fed tax eliminated

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With more than 2 million zero-emission vehicles (ZEV) sold, California Gov. Gavin Newsom renewed his state’s commitment to providing ZEV rebates if President Elect Donald Trump follows through on his threat to eliminate the federal tax credit.

Newsom said he will propose creating a new version of his state’s Clean Vehicle Rebate Program, phased on in 2023. During its lifetime, the CVRP funded more than 594,000 vehicle and saved more than 456 gallons of fuel. The proposed rebates could come from the Greenhouse Gas Reduction Fund, which is paid or by polluters under the state’s cap-and-trade program.

“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,” Newsom said. “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.”

Californians purchased 115,897 ZEVs in the third quarter of 2024, 26.4 percent of all new vehicle sales in the state. Newsom said as more electric vehicles, including plug-in hybrids, are on the road each day, consumers are benefitting from the state’s work to build a larger, more reliable charging network.

As of this year, the state has installed 150,000 public or shared private electric vehicle chargers, in addition to more than 500,000 at-home chargers; awarded more than $32 million in federal funds to install, operate and maintain 458 direct-current fast chargers along interstates and highways across the state; and awarded thousands of dollars in grants and rebated for low-income Californians to adopt electric vehicles, Newsom’s office said.

The move was supported by electric vehicle advocates.

“Continuing these new and used EV incentives provide more vehicle choice and allow more drivers to experience the benefits of driving electric, including lower operating costs, better warranties, quicker acceleration, and cleaner air–all while supporting U.S. manufacturing and domestic supply chain development,” Joel Levin, executive director of Plug In America, said.