POLITICS

What Newsom Is Doing to Stop California EV Tax Credit Cuts

November 26, 2024

Governor Newsom promised to reinstate California’s Clean Vehicle Rebate Program if the Trump Administration eliminates the federal EV tax credit.
California sold over 2 million zero-emission vehicles, leading the nation with 30.3 percent of all ZEVs sold in the United States.
The state allocated over $81 million in federal funding for EV fast chargers in 2025 under the Inflation Reduction Act and Infrastructure Investment and Jobs Act.

California has long been a leader in progress, and when it comes to clean transportation, the state is showing everyone how it is done. With over 2 million zero-emission vehicles (ZEVs) sold, including electric vehicles (EVs), hybrids (HEVs), plug-in hybrids (PHEVs), and hydrogen-powered models (FCEVs), the progress toward sustainable transportation is accelerating rapidly.

Despite these achievements, challenges remain that could slow the pace of change.

With the federal EV tax credit under threat from the Trump Administration, Governor Gavin Newsom is stepping up, pledging to keep clean transportation affordable for you and every Californian.

“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.”

This debate is rooted in your right to breathe cleaner air, drive smarter vehicles, and take meaningful steps to protect the planet. Understanding what’s at stake highlights how California is leading efforts to create a greener and more accessible future.

The Threat to the Federal EV Tax Credit

The federal EV tax credit, expanded under President Biden’s Inflation Reduction Act (IRA) in 2022, has been a vital tool for growing EV adoption. Offering up to $7,500 in tax incentives, it has opened the door for millions of people to drive cleaner, more affordable vehicles.

Now, with the Trump Administration planning to eliminate this program, the future of EV affordability is at risk.

Governor Newsom has made it clear that California will not stand idly by. If the federal tax credit is scrapped, he plans to revive the state’s Clean Vehicle Rebate Program (CVRP), which was phased out in 2023.

During its operation, the CVRP helped nearly 600,000 drivers make the switch to cleaner vehicles, cutting fuel consumption by an incredible 456 million gallons. The proposed revival ensures that the financial burden of cleaner transportation falls on polluters, not you, by tapping into the state’s Greenhouse Gas Reduction Fund.

Why California Leads in EV Adoption

California leads the nation in zero-emission vehicle (ZEV) sales, with an impressive 30.3% of all ZEVs in the U.S. sold there. This success comes from smart policies, massive investments in charging infrastructure, and strong demand from people like you.

In just the third quarter of 2024, Californians purchased 115,897 ZEVs, which made up 26.4% of all new cars sold in the state. These numbers show how Californians are driving the shift toward cleaner transportation.

To support this surge, California has installed over 150,000 public and shared private chargers, along with 500,000 at-home units. Federal support through President Biden’s Inflation Reduction Act and the Infrastructure Investment and Jobs Act has fueled this progress, including $32 million dedicated to fast chargers and an additional $81.7 million approved for 2025.

This network is the backbone of reliable and cleaner transportation, ensuring you have the power to go farther with confidence.

California Invests in Clean Transportation for All

California’s strategy goes far beyond the numbers. The state is working to make sure everyone benefits, from funding 1,000 zero-emission school buses to investing $102 million in cleaner freight transportation.

For low-income families, grants and rebates help make driving an EV more affordable than ever. You can learn more about these opportunities at ClimateAction.ca.gov or ElectricForAll.org. This is your chance to see how California is making clean transportation accessible for everyone.

The Stakes Are High, Protect the EV Tax Credit

Losing the federal EV tax credit would hit hard, not just in California, but across the entire country. It would stall progress, make clean transportation less accessible, and risk turning a promising future for electric vehicles into a thing of the past.

As Governor Newsom put it, “Consumers continue to prove the skeptics wrong—zero-emission vehicles are here to stay.” The data agrees.

California’s fight to protect the EV tax credit is about you and the choices you deserve. It’s about making cleaner cars affordable for your family, giving businesses the freedom to create, and ensuring future generations can breathe clean air.

The stakes are high, and your voice matters. Contact your representatives, support clean energy programs, and stay informed.