Californias government, under the leadership of Governor Newsom, has indicated that it could potentially offer rebates to residents who purchase electric vehicles, in the event that the incoming Trump administration decides to do away with a related federal tax credit. The proposal was officially issued on Monday.
Newsoms suggestion involves creating a new iteration of a prior program which had, during its implementation, funded purchases of over 594,000 vehicles. This had resulted in saving residents in excess of 456 million gallons of fuel. Having served its purpose, the program was retired in 2023.
According to Governor Newsom, the capital to run the proposed rebate program could potentially be sourced from the Greenhouse Gas Reduction Fund. This fund is primarily maintained by the contributions from polluters as part of the states cap-and-trade program. At this stage, no specifics regarding the cost of the program or the working of the rebate system have been shared.
Newsom is schedule to provide further details on the proposed program during his planned appearance in Kern County.
As of this point, California has reported sales of over two million zero-emission vehicles. Its worth noting that during his campaign period, President-elect Donald Trump had promised tax credits worth $7,500 for new EVs and $4,000 for pre-owned ones. However, following Tesla Chief Executive Elon Musks support and advisory involvement, the President-elect seems to have shifted his stance slightly. The original credits had been established as part of the 2022 Inflation Reduction Act, signed by President Joe Biden.
Addressing the potential elimination of the federal tax credit by the Trump Administration, Newsom stated Californias position. He reiterated the states commitment towards a cleaner, pollution-free transportation future by making electric vehicles more accessible.
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