California to offer EV rebates if Trump kills federal tax bills

California is committed to zero-emission vehicles, even if the state’s situation changes.

The state’s governor, Gavin Newsom, a Democrat, said Monday that if the Trump administration lowers the $7,500 EV tax credit, he will offer rebates to eligible residents who buy electric vehicles.

“We’re not turning our backs on a clean transportation future — we’re going to make it possible for people to drive clean cars,” Newsom said in a statement.

President Joe Biden introduced the tax credit under the Bipartisan Inflation Reduction Act, but the incoming Trump administration is strongly considering cutting the program as part of broader tax reform.

Newsom said he would propose a new version of California’s Clean Vehicle Rebate Program, which expired in 2023, but financed more than 594,000 vehicles in its lifetime. The proposed rebates would come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the government’s cap-and-trade program.