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California Won't Replace Expiring $7,500 Federal EV Tax Credit
(Bloomberg) -- California will not backfill a $7,500 federal tax credit for buyers of electric vehicles that is set to expire this month, Governor Gavin Newsom said on Friday, reversing an earlier pledge to restart the state’s own EV subsidies.
“We can’t make up for federal vandalism of those tax credits,” Newsom said during a press conference in San Francisco. The state will support expanding EV infrastructure, but “not the direct subsidies that we cannot make up for,” the Democrat said.
Newsom last year vowed that California would step in if the Trump administration followed through with campaign threats to eliminate the federal $7,500 EV tax credit. But the governor’s plan hit difficulties as California faced a budget deficit.
California’s previous EV tax credit program ended in 2023, leaving it currently outside of a group of 17 states that currently offer some form of EV purchase tax credit, according to an August report from the nonprofit Tax Foundation.
“We can’t make up for federal vandalism of those tax credits,” Newsom said during a press conference in San Francisco. The state will support expanding EV infrastructure, but “not the direct subsidies that we cannot make up for,” the Democrat said.
Newsom last year vowed that California would step in if the Trump administration followed through with campaign threats to eliminate the federal $7,500 EV tax credit. But the governor’s plan hit difficulties as California faced a budget deficit.
California’s previous EV tax credit program ended in 2023, leaving it currently outside of a group of 17 states that currently offer some form of EV purchase tax credit, according to an August report from the nonprofit Tax Foundation.
https://www.msn.com/en-us/money/companies/california-won-t-replace-expiring-7-500-federal-ev-tax-credit/ar-AA1MVy8F?ocid=msedgntp&pc=LCTS&cvid=68cdd65c4df448649ebdcedde1c3fdde&ei=41