California is committed to zero-emission vehicles, even if the federal mood shifts. 

The state’s governor Gavin Newsom, a Democrat, said Monday that if the incoming Trump administration cuts the $7,500 EV tax credit, he will propose rebates for eligible residents who buy electric vehicles. 

“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,” Newsom said in a statement. 

President Joe Biden introduced the tax credit under the Bipartisan Inflation Reduction Act, but the incoming Trump administration is strongly considering cutting the program as part of broader tax reform. 

Newsom said he would propose a new version of California’s Clean Vehicle Rebate Program, which phased out in 2023, but funded more than 594,000 vehicles in its lifetime. The proposed rebates could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.