California Eyes State Tax Rebates for EVs Amid Federal Uncertainty

California is considering implementing state tax rebates for electric vehicles if federal EV tax credits are removed by the Trump administration. Gov. Gavin Newsom plans to revive and update the state's Clean Vehicle Rebate Program, potentially funding it through the Greenhouse Gas Reduction Fund. California leads in clean vehicle sales.

California is poised to reintroduce state tax rebates for electric vehicle purchases, should the Trump administration follow through on eliminating federal EV tax credits, Governor Gavin Newsom announced Monday.

Newsom proposes revamping the state's previous Clean Vehicle Rebate Program, which closed in 2023 after facilitating the sale of 594,000 cars and conserving 456 million gallons of fuel. Funding for the proposed rebate could derive from California's Greenhouse Gas Reduction Fund, bolstered by polluters under the cap-and-trade program.

Currently, the state has surpassed two million zero-emission vehicle sales, asserting its leadership in the clean vehicle market. Any new rebate scheme would aim to drive innovation and competition. More details are anticipated during Newsom's appearance in Kern County.

(With inputs from agencies.)