In the event that President-elect Donald Trump’s new government eliminates a federal tax credit for electric vehicles, California will give residents refunds, according to Governor Gavin Newsom.
Newsom said he would restore the state’s Clean Vehicle Rebate Program, which offered financial incentives on over 590,000 vehicles before it was phased out in late 2023, in a news release published 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,” Newsom stated. “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.”
In 2022, President Joe Biden signed the Inflation Reduction Act into law, which included federal incentives for both new and used electric automobiles. Trump may collaborate with Congress to amend the regulations pertaining to the rebates when his second term in office starts the following year. By lowering the amount of money provided or restricting who is eligible, such possible adjustments might limit the government rebates.
Many American automakers, including Ford, General Motors, and the EV startup Rivian, would suffer if federal incentives for the purchase of electric vehicles were restricted. Given that it now sells more EVs and has a larger profit margin than any other EV manufacturer, Tesla, which also manufactures its cars in the US, would be less affected.
Additionally, earlier this month, Newsom declared that he will call a special session in December “to protect California values,” which he claimed “are under attack by this incoming administration.” These values include reproductive rights and fundamental civil rights.
“Whether it be our fundamental civil rights, reproductive freedom, or climate action — we refuse to turn back the clock and allow our values and laws to be attacked,” Newsom stated on X on November 7.
A request for comment was not immediately answered by a Trump representative.
California has already threatened to take action against the Trump administration over clean transportation laws.
According to the Associated Press, California and 22 other states filed a lawsuit against his administration in 2019 after it revoked its authority to establish fuel economy and greenhouse gas emission rules for automobiles.
According to the Los Angeles Times, California filed more than 100 lawsuits against the Trump administration during his first term, mostly regarding issues like immigration, health care, education, and gun control.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!