California governor proposes $200 million in new state EV tax rebates

WASHINGTON, Jan 9 (Reuters) - California Governor Gavin Newsom is proposing $200 million in new state electric vehicle tax rebates after Congress earlier this year ended a federal $7,500 state tax deduction on new EVs, the state said on Friday.

In late 2024, Newsom said if President Donald Trump eliminated a federal EV tax credit, he would propose creating a new version of the state’s Clean Vehicle Rebate Program that ended in 2023 and spent $1.49 billion to subsidize 586,000 vehicles over a decade. EV sales fell sharply in the final three months of 2024 after the federal tax credit expired on September 30.