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Newsom vows to restore California's EV rebate if Trump ends federal credit program

The state phased out its electric vehicle rebate last year. It's a program that funded nearly 600,000 vehicles and saved more than 456 million gallons of fuel.

SAN DIEGO — The plug could soon be pulled on the federal tax credit for electric vehicles.

President-elect Trump has said that once he's in office, the $7,500 tax credit for electric vehicle purchases will be eliminated. 

In response, Governor Gavin Newsom is now vowing to bring that same rebate back here in California.

California phased out its electric vehicle rebate program last year: a program that funded nearly 600,000 vehicles and, according to the governor's office, saved more than 456 million gallons of fuel.

On Monday, the governor promised to revive it, if the tax credit is scrapped on the federal level.

On the campaign trail, Donald Trump made it clear that he plans to end the federal tax credit program for electric vehicles.

"I don't think it's the best decision," said San Diegan Mint Bunhey. She said she would like to buy an electric vehicle someday.

She is also encouraged to hear Governor Newsom's plan to reintroduce California's EV rebate if Trump ultimately repeals the nationwide program.

She thinks it would motivate Californians to opt for electric.

"I would hope so," she told CBS 8. "I mean, the car is expensive but any amount off is any amount off, so I think it would help."

While San DIegan Baqi Abdul also has a gas-powered vehicle, he has has already taken advantage of the EV rebate. 

He believes that if it's offered either on the state or federal level, others will too

"You save on gas, that's the first thing," he said. "And there's less maintenance."

Those tax credits, which Newsom has vowed to renew if necessary, provide a $7,500 credit for those buying a new EV and $4,000 for a used one.

Newsom's administration has also indicated that if the state's EV tax credit returns, that Tesla could be excluded based on its already sizeable market share here in the Golden State, since this program is intended to spur competition.

In response, Elon Musk posted on X that "Even though Tesla is the only company who manufactures their EVs in California! This is insane."

Already, one in four new cars sold in California are all-electric.

Nationwide, it is closer to nine percent: but the market share is growing. 

"Those sales increases are going to face headwinds from the Trump administration," said UC Berkeley Climate Professor Ethan Elkind, who said Trump's plan to repeal the EV credit could hurt the auto industry

"For that to go away, it's going to make it much harder for those legacy companies to continue to sell vehicles," Elkind said. 

President-elect Trump could not unilaterally get rid of this federal tax credit program. It would be up to Congress to repeal it as part of the 'inflation reduction act' that President BIden signed into law two years ago.

By that same token, Governor Newsom would need the backing of the state legislature to re-instate California's EV rebate program. 

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