California Governor Gavin Newsom has issued a strong response to President-elect Donald Trump’s plans to eliminate the federal $7,500 electric vehicle (EV) tax credit established under the Biden administration. The tax credit, which aimed to incentivize EV adoption and reduce carbon emissions, has been a key component of federal efforts to combat climate change.
Newsom warned that rolling back the incentive would not only hinder California’s aggressive environmental goals but also undermine the nation’s transition to cleaner transportation. He signaled potential state-level interventions to counteract the decision, emphasizing California’s leadership in promoting green energy and clean vehicle initiatives.
California, which accounts for a significant portion of EV sales in the U.S., has implemented its own suite of incentives and mandates to encourage EV adoption. Newsom indicated that the state may expand its existing programs or introduce new measures to offset the impact of losing the federal credit.
Critics of Trump’s plan argue that removing the tax credit could slow the growth of the EV market and diminish the U.S.’s competitive edge in the global clean energy sector. Supporters of the rollback contend that the credit disproportionately benefits wealthier individuals and automakers, advocating instead for policies that prioritize energy independence and economic efficiency.
The decision has reignited debates over the balance between federal and state policies in addressing climate change and the role of government in shaping consumer markets. As California prepares to respond, the clash between state and federal priorities on environmental issues is likely to intensify in the coming months.