Newsom: California Will Uphold EV Tax Credits If the Trump Administration Kills Them

Electric vehicles are some of the most politically-charged products on the market, and the incoming Trump administration is expected to make significant changes to the government’s EV tax credit, up to and including killing them altogether. California, which has rules that have often run counter to Trump’s political agenda, may step up to fill the void if that happens, offering a state-level rebate to buyers.

Governor Gavin Newsom said in a recent statement, “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.” The state has a Greenhouse Gas Reduction Fund, which draws its money from heavier polluters. While the fund would cover some of the credits, additional money would need to come from other state-funded programs.

Newsom didn’t elaborate on how the state would pay for the program but is expected to give more details at a news conference later today. California already offers substantial EV incentives, and individual municipalities often have additional programs that make the vehicles much cheaper for buyers.

Current EV tax credits can reach $7,500 for qualified vehicles, with half of the credit tied to raw materials sourcing and battery production locations and the rest relying on the final assembly location. Trump has promised to kill the credits, though that rhetoric has been tempered a bit as Tesla CEO Elon Musk has become a larger part of the President Elect’s advisory corps. While ending the credits could hurt Tesla in the short run, many expect the impact to be much more significant for legacy and other automakers.

[Images: Chevrolet, Ford, Kia]

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