In response to speculations of federal tax credits for electric vehicle (EV) purchases being eliminated by the incoming Trump administration, California Governor has announced the possibility of a state-based rebate system.
The proposal issued on Monday taps into the previously successful approach of a rebate system, which helped fund over 594,000 vehicles, saving California residents more than 456 million gallons of fuel. However, the original program was phased out in 2023.
The proposition for a new rebate system would potentially be funded by the Greenhouse Gas Reduction Fund, a fund contributed to by polluters under the states cap-and-trade program. Governor Newsom, however, did not provide any details about the cost of the program or how the rebate system would function.
According to data, over 2 million zero-emission vehicles have already been sold in the Golden State. During his campaign, President-elect Donald Trump had proposed a $7,500 credit for new EV purchases and $4,000 for used EVs, a stance he later softened after Tesla CEO Elon Musk showed support.
These credits were introduced as part of the Inflation Reduction Act signed by President Joe Biden in 2022. Governor Newsom pointed out that if the federal tax credit decision is overturned by the Trump administration, California would intervene with a state-level solution cumulating its commitment to clean air and green jobs.
State authorities are expected to release more information about the proposed program soon.
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