California seeks to fill the gap left by terminated electric vehicle tax credits
Who benefits from this decision?
Gov. Gavin Newsom (D-CA) will unveil an electric vehicle incentive program next week to offset the termination of federal incentives, with calls to make EVs more affordable for a broader range of consumers.
The $200 million incentive program is part of the governor’s budget proposal and is designed to accelerate the state’s EV transition. However, some electric vehicle experts said the state’s program should be accessible to people who cannot typically afford an EV.
Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, told the Washington Examiner: “[I]ncentivizing people who buy used vehicles, which is typically two and a half times the number each year, people that buy used cars versus new cars, I think would be really smart because then you can really get EVs in the hands of people who normally couldn’t afford them.”
The proposal comes as the Trump administration has targeted the Biden administration’s so-called “EV mandate,” which are policies that support the electric car transition. Since taking office, President Donald Trump has rolled back emissions standards and ended incentives.
Trump’s One Big Beautiful Bill Act slashed hundreds of billions of dollars in clean energy tax credits created by the Biden administration’s Inflation Reduction Act, including the EV tax credits. The credits provided consumers with up to $7,500 for purchasing a new EV and $4,000 for a used one, as a means of encouraging consumers to buy battery-powered vehicles rather than gas-powered cars.
McDonald said California should avoid matching the $7,500 rebate for new vehicles and instead offer about $4,000 for new EVs and roughly $2,500 for used ones so that more people can benefit from the incentives.
The EV tax credits were intended to encourage consumers to purchase battery-powered vehicles. But Trump and Republicans have criticized the tax incentives as overly costly and as tilting the market in favor of EVs.
Bill Magavern, policy director at the Coalition for Clean Air, also noted that the incentives target low- and moderate-income Californians who face the highest barriers to EV ownership.
“If you just created a first-come, first-served program available to anybody buying any zero-emission vehicle, most of that would be sucked up very quickly by fairly affluent people buying fairly expensive cars,” Magavern said.
The end of the EV tax credits, along with other changes in auto policies, has led automakers to adjust their strategies. …
Who benefits from this decision?
Gov. Gavin Newsom (D-CA) will unveil an electric vehicle incentive program next week to offset the termination of federal incentives, with calls to make EVs more affordable for a broader range of consumers.
The $200 million incentive program is part of the governor’s budget proposal and is designed to accelerate the state’s EV transition. However, some electric vehicle experts said the state’s program should be accessible to people who cannot typically afford an EV.
Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, told the Washington Examiner: “[I]ncentivizing people who buy used vehicles, which is typically two and a half times the number each year, people that buy used cars versus new cars, I think would be really smart because then you can really get EVs in the hands of people who normally couldn’t afford them.”
The proposal comes as the Trump administration has targeted the Biden administration’s so-called “EV mandate,” which are policies that support the electric car transition. Since taking office, President Donald Trump has rolled back emissions standards and ended incentives.
Trump’s One Big Beautiful Bill Act slashed hundreds of billions of dollars in clean energy tax credits created by the Biden administration’s Inflation Reduction Act, including the EV tax credits. The credits provided consumers with up to $7,500 for purchasing a new EV and $4,000 for a used one, as a means of encouraging consumers to buy battery-powered vehicles rather than gas-powered cars.
McDonald said California should avoid matching the $7,500 rebate for new vehicles and instead offer about $4,000 for new EVs and roughly $2,500 for used ones so that more people can benefit from the incentives.
The EV tax credits were intended to encourage consumers to purchase battery-powered vehicles. But Trump and Republicans have criticized the tax incentives as overly costly and as tilting the market in favor of EVs.
Bill Magavern, policy director at the Coalition for Clean Air, also noted that the incentives target low- and moderate-income Californians who face the highest barriers to EV ownership.
“If you just created a first-come, first-served program available to anybody buying any zero-emission vehicle, most of that would be sucked up very quickly by fairly affluent people buying fairly expensive cars,” Magavern said.
The end of the EV tax credits, along with other changes in auto policies, has led automakers to adjust their strategies. …
California seeks to fill the gap left by terminated electric vehicle tax credits
Who benefits from this decision?
Gov. Gavin Newsom (D-CA) will unveil an electric vehicle incentive program next week to offset the termination of federal incentives, with calls to make EVs more affordable for a broader range of consumers.
The $200 million incentive program is part of the governor’s budget proposal and is designed to accelerate the state’s EV transition. However, some electric vehicle experts said the state’s program should be accessible to people who cannot typically afford an EV.
Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, told the Washington Examiner: “[I]ncentivizing people who buy used vehicles, which is typically two and a half times the number each year, people that buy used cars versus new cars, I think would be really smart because then you can really get EVs in the hands of people who normally couldn’t afford them.”
The proposal comes as the Trump administration has targeted the Biden administration’s so-called “EV mandate,” which are policies that support the electric car transition. Since taking office, President Donald Trump has rolled back emissions standards and ended incentives.
Trump’s One Big Beautiful Bill Act slashed hundreds of billions of dollars in clean energy tax credits created by the Biden administration’s Inflation Reduction Act, including the EV tax credits. The credits provided consumers with up to $7,500 for purchasing a new EV and $4,000 for a used one, as a means of encouraging consumers to buy battery-powered vehicles rather than gas-powered cars.
McDonald said California should avoid matching the $7,500 rebate for new vehicles and instead offer about $4,000 for new EVs and roughly $2,500 for used ones so that more people can benefit from the incentives.
The EV tax credits were intended to encourage consumers to purchase battery-powered vehicles. But Trump and Republicans have criticized the tax incentives as overly costly and as tilting the market in favor of EVs.
Bill Magavern, policy director at the Coalition for Clean Air, also noted that the incentives target low- and moderate-income Californians who face the highest barriers to EV ownership.
“If you just created a first-come, first-served program available to anybody buying any zero-emission vehicle, most of that would be sucked up very quickly by fairly affluent people buying fairly expensive cars,” Magavern said.
The end of the EV tax credits, along with other changes in auto policies, has led automakers to adjust their strategies. …
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