California plans EV subsidies to offset potential federal tax credit repeal
California Gov. Gavin Newsom pledged to revive state-level subsidies for electric vehicle purchases if the incoming Trump administration removes the federal EV tax credit, which provides up to $7,500 per vehicle.
Ian Duncan and Patrick Svitek report for The Washington Post.
In short:
- President-elect Trump is expected to seek repeal of the federal EV tax credit as part of a broader rollback of Biden-era climate policies.
- California Gov. Gavin Newsom announced a plan to reinstate state-level EV rebates, potentially funded by cap-and-trade revenue, to maintain affordability.
- Analysts warn repealing the credit could reduce new EV registrations by 27%, although long-term adoption is expected to rise due to technological advances and lower running costs.
Key quote:
“We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
— Gavin Newsom, California governor
Why this matters:
Transportation generates the largest share of U.S. carbon emissions, and policies encouraging EV adoption are key to reducing climate impacts. Removing federal subsidies could slow progress on clean energy goals and disproportionately affect states leading in EV adoption, like California.
Related: California girds for a Trump comeback with climate defense plan
