California to Keep Electric Vehicle Tax Credits if Federally Repealed—But Not For Tesla
In the event of federal electric vehicle tax credits being eliminated, California intends to keep them, Inside EVs reports.
California’s Clean Vehicle Rebate Program ended in Nov. 2023. Before that, it funded 594,000 vehicles and helped save nearly 4 million metric tonnes of carbon dioxide equivalent emissions, according to the California Air Resources Board.
The incoming Trump administration is reportedly gearing up to axe the existing federal EV tax credit. But this past Monday, Gov. Gavin Newsom said California would be taking action if that happens.
“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,” Newsom shared in a statement.
State rebates would be funded by the state’s Greenhouse Gas Reduction Fund. Additionally, the tax credits wouldn’t apply to Tesla vehicles, in an effort for its rivals to become more competitive.
“It’s about creating the market conditions for more of these car makers to take root,” the governor’s office stated.
