Even as President-elect Donald Trump is likely preparing to reduce or eliminate the up-to-$7,500 federal EV tax credit launched via the Biden administration’s Inflation Reduction Act, California is bucking the incoming presidency’s policy reversal with plans for a state-level electric vehicle rebate.
Golden State Governor Gavin Newsom announced on November 25th, 2024 that California will resurrect its Clean Vehicle Rebate Program – which offered state residents $1,000 to $7,500 rebates on eligible vehicles, bought or leased – in an updated form if Trump ends the federal tax credit.
The state just topped the 2-million unit mark for “zero-emission vehicles” or ZEVs sold, and remains America’s foremost bastion of electric vehicle adoption. More than 26 percent of the vehicles sold in Cali during Q3 2024 were zero-emission, a category including plug-in hybrids as well as all-electric models. Close to 116,000 zero-emission units left the state’s showrooms during the quarter, encouraging Newsom to propose his rebate solution.
Newsom stated that “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.” The program will include not only the rebates to encourage purchases of electric vehicles, hybrids, and hydrogen vehicles, but further development of the supporting electric infrastructure and more public transit.
The rebate itself, if brought into reality, will use money from the Greenhouse Gas Reduction Fund to operate. This fund is refilled with money obtained from California’s cap-and-trade program. While it will use the general framework provided by the Clean Vehicle Rebate Program – which ended in 2023 after it helped pay for more than 594,000 ZEVs – the new rebate will also include provisions meant to encourage innovation.
Currently, GM and other automakers are urging Donald Trump to keep the EV tax credit even as they support his likely plans to axe the NHTSA’s stringent new fuel economy standards. The General says it will pursue its electrification strategy regardless of administrative or policy changes, but Newsom’s rebate would undoubtedly soften the blow of a Trump elimination of the federal tax credit.
Newsom clearly declared California’s automotive mission in his recent statement, summing up the state’s intentions by saying “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.”
Comments
How will they afford it?
California is the 5th largest economy in the world.
For now……
That will run a deficit of $45B next year according to calmatters_dot_org.
Recent surpluses were only possible through federal covid relief funding.
That being said, CA is free to choose how it spends is current and future taxpayers money.
CA is also free to flip. Gavin better be careful.
He’s term-limited. Given the registration gap between Democrats and Republicans in California, the odds of a Republican winning any statewide office in this time is nearly zero.
To Lurch, Trump wasn’t supposed to win nationwide popular vote either. But he did, so, we’ll just have to see.
Too big to fail? That’s terrible posturing.
More dislikes than likes? Tell me then, how exactly is being the 5th largest economy a measurement of economic safety?
And that state cannot even tally up an election after 3 weeks.
With $2 billion debt, not impressed.
That is due to Hollywood money. Hollywood lost 2 trillion over the last 4 years. California has no industry, and despite being the 5th largest economy, they 1, have no more money, 2, can’t print money, 3 are loosing people and jobs.
And if its a BYD, he will give you an extra subsidy ontop of the $7500 to help promote his bosses in Beijing.
I live in California and all I can say is we are taxed like crazy here. They will allow this subsidy and they will make it up with higher bridge tolls, higher registration, and or a higher sales tax. We already pay the highest fuel prices in the country and they are going to raise the cost .65 cents a gallon. Now they are making toll roads out of the fast lanes. There is a reason why huge corporations are leaving this state is droves. Unless we elect a Republican or an Independent, this state is going to get way worst. I would even take a truly moderate Democrat at this point but for some reason they don’t exist here.
Actually THIS. California tech world may flip the state.
It won’t because California tech world is moving to Texas. Starting with Elon.
And Hollywood is moving to Atlanta. By that 2035 no ICE deadline, California might be as populous as populous as Massachusetts. Next year 1 in 5 of their population will be deported, in 4, another 1 in 5 will likely move to a new state.
A lot of HOT AIR
Please have some integrity and stop saying ZERO Emission vehicles. They are not ZERO Emission vehicles. The carbon footprint to make the battery and the vehicle is equivalent to 10-15yrs (model dependant) of driving a gas powered vehicle. Also with a gas powered vehicle production a child isn’t being exploited to dig lithium out of the ground their hands. Oh and one last fun fact, electricity doesn’t come from unicorns.
But can you gey free fuel from the sky?
Yes, i can put peanut oil in my diesel. Photosynthesis is also 85% thermally efficient to solar panels 25-35%
Good! Let Kalifornia pay the rebates instead of the rest of us.
Having worked for GM Oshawa in production for 30+ years I understand the need for innovation but as mentioned in a previous post there is no such thing as a ZEV. Do people think the equipment to mine lithium and related materials runs on Fruity Pebbles! An EV weighs considerably more than an ICE vehicle. That in itself is more mined materials to produce a vehicle. Not to mention the electricity production that’s required to charge them. Considering California has an ever increasing frequency of brown and blackouts, I’d be concerned about an increased EV adoption mentality. If it’s not nuclear or hydro-electric then it’s fossil fuel burning produced. And perhaps the most important aspect that’s just coming to light is the amount of micro rubbers that are making their way into our spillways, creeks and rivers because EV’s excessive weight deteriorates tires at a more rapid rate. Many years ago when the Tesla Model S had come out I was talking to a man who had one and he was on his second set of tires after only 25,000 kilometres, not miles! From a taxpayer standpoint I’d be pissed my taxes were going to subsidize EVs if I was a diehard ICE guy. If you’re really concerned about “saving the environment” then pay full price for your EV. From what I’ve read, states like California and New York are becoming known as “Loser States” because of ridiculous taxes and unfriendly business policies.
Oshawa was a good quality facility. Impalas, Buicks or trucks?
Ya, we had to build a special cabinet in the truck plant to display all the J.D. Power awards for quality and productivity.
Chris,
“Loser States” As has a lifelong New Yorker, maybe we should stop shipping you truck engines from Tonawanda Engine, the world’s largest engine plant, and close the Oshawa assembly plant.
We’ve already closed the St. Catherine’s assembly plant, maybe Oshawa will be next.
For anyone that has never been to California, in the afternoon around LA the air smells like you’re in your garage with your car running.
“….which offered state residents $1,000 to $7,500 rebates on eligible vehicles, bought or leased – in an updated form if Trump ends the federal tax credit.”
Being reported Tesla vehicles would be specifically excluded from the state subsidy as political retribution against Musk for supporting Trump.
Elon Musk is very well subsidized from the federal government. He receives tens of billions of dollars from the federal government, look into it. Trump has appointed him to this made up agency to eliminate government waste.
Sounds like the fox watching the hen house.