The government of the state of California plans to provide rebates to residents who purchase electric vehicles if the next US administration ends the $7,500 federal EV tax credit.

“We will intervene if the administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” said Governor Gavin Newsom. “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.”

The plan was announced on the heels of news that the state had just seen the sale of its two-millionth zero-emission vehicle.

Once in office, the new president will not be able to eliminate the EV tax credits, which are part of the Inflation Reduction Act of 2022, on his own initiative. Congress would have to amend the law or pass new legislation specifically intended to abolish the credits.

Newsom said that the proposed California rebates—should it be necessary to begin to offer them—would include “changes to promote innovation and competition in the ZEV market,” and that the funds could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.

Source: Governor Gavin Newsom