Newsom threatens to intervene if Trump eliminates electric vehicle tax credit
The California governor promised to revive a state program to incentivize the purchase of these cars.
Gavin Newsom, governor of California
California governor Gavin Newsom, warned defiantly that he would take action at the state level if President-elect Donald Trump decides to eliminate the federal tax credit of $7,500 for the purchase of electric vehicles, a key initiative of the Joe Biden administration.
A promise of state intervention
In a statement issued Monday, Newsom assured that should Trump's plan to eliminate the tax credit materialize, his administration will offer an equivalent rebate to Californians.
"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," the governor said.
The proposal, however, would depend on the relaunch of the Clean Vehicle Rebate Program, an incentive scheme that closed in November 2023, the governor's office said in a press release.
Restrictions generating controversy
The potential relaunch of the state's potential program could limit incentives to automakers with small market shares, leaving out Tesla, which dominated with 56% of new electric vehicle sales in the state during the third quarter.
Entrepreneur Elon Musk, CEO of Tesla, reacted strongly to this possibility on his social media, calling it "insane" and stressing that Tesla is the only company that produces electric vehicles in California.
History of clashes with Trump
Newsom's announcement comes days before a special session convened to bolster the state's legal tools in the face of the incoming administration's policies. During Trump's first term, California filed over a hundred lawsuits against his administration, cementing a pattern of litigation that could now repeat itself.
Newsom's statement reaffirms his willingness to challenge any federal changes that he believes could jeopardize California's gains in clean transportation and green energy.
LATEST
