California Governor Gavin Newsom said the state will give residents rebates if President-elect Donald Trump’s new administration eliminates the federal tax credit for electric vehicles.
In a news release issued Monday, Newsom said he would restart the state’s Clean Vehicle Rebate Program, which provided financial incentives to more than 590,000 vehicles before being phased out at the end of 2023.
“We will act if the Trump administration eliminates the federal tax credit, redoubling our commitment to clean air and green jobs in California,” Newsom said. “We’re not returning to a clean transportation future – we’re going to make it more affordable for people to drive vehicles that don’t pollute.”
The federal rebates on new and used electric vehicles were implemented in the Inflation Reduction Act that President Joe Biden signed into law in 2022. When Trump’s second term begins next year, he could work with Congress to change the rules around those cuts. These potential changes could limit federal rebates, including by reducing the amount of money available or limiting who is eligible.
Limiting federal subsidies on electric vehicle purchases would hurt many U.S. automakers, including Ford, General Motors and EV startup Rivian. Tesla, which also builds its cars in the United States, would take a smaller hit because that company currently sells more EVs and has a higher profit margin than any other EV manufacturer.
Newsom also announced earlier this month that he will call a special session in December “to protect California values,” including basic civil and reproductive rights, which he said are “under attack by this new administration.”
“Whether it’s our basic civil rights, reproductive freedom or climate action – we refuse to turn back the clock and allow our values and laws to be attacked,” Newsom said on November 7 on X.
A Trump spokesperson did not immediately respond to a request for comment.
This isn’t the first time California has taken action against the Trump administration over clean transportation legislation.
In 2019, California and 22 other states sued his administration for revoking its ability to set greenhouse gas emissions and vehicle fuel economy standards, The Associated Press reported.
California sued the Trump administration more than 100 times during his first term, mainly on issues such as gun control, health care, education and immigration, the Los Angeles Times reported.
This article was originally published on NBCNews.com
