SACRAMENTO, Calif. (AP) — California could offer rebates for electric vehicle purchases if the incoming Trump administration eliminates a federal tax credit for people who buy electric cars—but possibly not for Tesla EVs, Gov. Gavin Newsom said last week.
Newsom, a Democrat, proposed creating a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023 after funding 594,000 cars and saving 456 million gallons (1.73 billion litres) of fuel, Newsom’s office said.
“Consumers continue to prove the skeptics wrong—zero-emission vehicles are here to stay,” Newsom said in a statement. “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.”
Newsom’s proposal is part of his plan to protect California’s progressive policies ahead of Republican President-elect Donald Trump’s second term. He called the state Legislature to a special session beginning Dec. 2 to help “Trump-proof” state laws by giving the attorney general’s office more funding to fight federal challenges.
Those legislated provisions begin with a US$25-million war chest to respond to potential attacks by the Trump administration on state policies regarding climate change, civil rights, immigration, and abortion access, AP writes.
But a budget shortfall could complicate California’s resistance efforts. Early projections show the state could face a $2-billion deficit next year, according to a report released last week by the non-partisan Legislative Analyst’s Office. That’s an improvement from an estimated $46.8-billion shortfall the state faced last year, but it could still curtail the state’s ability to expand new programs and fight federal legal challenges. Legislative leaders in both chambers have said the state needs to stay prudent in anticipation of future budget deficits.
Karoline Leavitt, a spokeswoman for Trump’s transition team, said the president-elect would deliver on his campaign promises, “including stopping attacks on gas-powered cars.”
“When he takes office, President Trump will support the auto industry, allowing space for both gas-powered cars AND electric vehicles,” she said in a statement.
Leavitt may have missed the memo that Detroit automakers are asking Trump to mandate the switch to EVs.
Money for California’s new rebate system could come from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s carbon cap-and-trade program, the governor’s office said.
Officials didn’t say how much the program would cost or how the rebates would work.
California has surpassed two million zero-emission vehicles sold, according to Newsom’s office. The state has passed policies in recent years to support the transition away from fossil fuel-powered cars, trucks, trains, and lawn mowers.
Trump previously vowed to end federal electric vehicle tax credits, which are worth up to $7,500 for new zero-emission vehicles. There’s also a $4,000 credit for used ones. But Trump later softened his stance as Tesla CEO Elon Musk became a supporter and adviser.
Newsom’s proposed rebates could exclude Tesla and other automakers in an effort to promote more market competition and innovation, according to the governor’s office. But that is subject to negotiation with the state legislature.
Musk called Tesla’s possible exclusion “insane” in a post on social media. About 42% of rebates went to people buying or leasing Tesla vehicles under the state’s previous clean vehicle rebate program, according to data from the California Air Resources Board, just one of a litany of massive taxpayer subsidies to the famously anti-government Musk.
Trump criticized Newsom on social media after the governor called the special session, calling out the high cost of living in California and the state’s homelessness crisis. Trump said Newsom was “stopping all of the GREAT things that can be done to ‘Make California Great Again.’”
Newsom said on his podcast earlier this month that he reached out to Trump after the election. He said at a news conference last week that he still hadn’t heard back from the president-elect.
California’s defunct Clean Vehicle Rebate Program offered rebates on electric cars as high as $2,500.
The Canadian Press republished the main body of this Associated Press story on November 25, 2024, with an update December 2.
