**California Governor Pledges State EV Rebates if Federal Tax Credit is Scrapped**

California Governor Gavin Newsom has committed to reinstating the state's rebate program for electric vehicle (EV) purchases if President-elect Donald Trump follows through on his plan to eliminate the federal tax credit. During his campaign, Trump promised to dismantle President Joe Biden's EV mandate on his first day in office. Now, as the transition begins, Trump's advisors are discussing incorporating a measure to scrap the $7,500 federal tax credit for new EV purchases into a broader tax reform package.

In response to this potential federal rollback, Newsom has vowed to renew California's Clean Vehicle Program, which was recently phased out. This program had previously provided rebates ranging from $1,000 to $7,500 for the purchase or lease of new zero-emission vehicles, including electric, plug-in hybrid electric, and fuel cell vehicles. Newsom's commitment aims to maintain California's leadership in clean transportation.

"We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California," Newsom declared in a statement. "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."

California's rebate program, which ran from 2010 to 2023, was instrumental in helping residents purchase over 594,000 vehicles. The state estimates that this initiative saved more than 456 million gallons of gasoline. If the rebate program is reinstated, it may include adjustments to "promote competition in the zero-emission vehicle market." The funding for this program would come from the state's Greenhouse Gas Reduction Fund, which is financed by companies that emit pollution under California's cap-and-trade program.

The move by Newsom is a preemptive strike to navigate what could be a tumultuous relationship with the federal government over the next four years. Trump's administration previously attempted to revoke California's ability to set its own air standards, a right established under the Clean Air Act of 1970. Although his administration succeeded in rolling back Obama-era tailpipe emissions rules, California's air standards remained intact.

This time around, Newsom may find allies in unexpected places. During Trump's first term, several automakers, including General Motors, supported efforts to challenge California's pollution standards. However, the auto industry has since experienced the benefits of policies favoring electric vehicles and is now more inclined to retain the current tax incentives. The Alliance for Automotive Innovation, representing both domestic and foreign automakers, has recently urged Trump's team to preserve the federal tax credit for EVs.