If the federal government eliminates the tax credit for electric vehicles, the governor will need legislative support to restart a state-level incentive program.
California Governor Gavin Newsom says the state will protect electric vehicle tax credits if the incoming administration eliminates them at the federal level, reports Joanne Haner in The Hill.
The governor would need support from the state legislature to restart a state-level zero-emission vehicles (EV) credit program that ended in 2023.
According to a press release from the governor’s office, “The proposed California rebates, which would include changes to promote innovation and competition in the ZEV market, could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.” The release notes that in the third quarter of 2024, electric vehicles accounted for over a quarter of new car sales in California.
California is also building out its electric vehicle infrastructure. According to the release, there are 150,000 public or shared private EV chargers in the state, in addition to over 500,000 residential chargers. The state will use a $32 million federal grant to install 458 direct-current fast chargers (DCFC) along interstates and highways.
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