California’s plan to keep EV rebates rolling

California is putting the wheels in motion to keep EV rebates intact for state residents in the event President-elect Trump axes federal tax credits for electric vehicles (EVs).

The details: Trump has been very candid about his plans to eliminate the tax credit for EVs created by the Biden administration, which includes a rebate of $7,500 for new electric vehicles and $4,000 for used EVs under the Inflation Reduction Act.   

Digging in: The cornerstone of California’s strategy to counter any plans to eliminate the federal EV credits — introduced by California Gov. Gavin Newsom — involves a new version of the state’s Clean Vehicle Rebate Program.

• California’s Clean Vehicle Rebate Program was launched in 2010 and phased out in 2023.

• The rebate program started with a $5,000 rebate and increased to $7,500.  

• Since its inception, the program has provided rebates for more than 594,000 vehicles and saved more than 456 million gallons of fuel.

Worth noting: Tesla cars would likely be excluded from these rebates and credits.

By the numbers: California has been at the forefront of the wider adoption of EVs. To date, more than 2 million electric, plug-in hybrid, and hydrogen-powered vehicles have been sold in the state.

• In Q3 2024 alone, Californians purchased 115,897 zero-emission vehicles (ZEVs), representing 26.4% of all new vehicle sales in the state.

What they’re saying: “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,” stated Newsom.

Weighing it all: It makes sense that California would move quickly, preparing to offset any actions taken by President-elect Trump to cut federal tax rebates for EVs. The state has enacted one of the nation’s most aggressive emissions strategies, with plans for all new cars and light trucks sold in California to be zero-emissions by 2035.

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