California could offer state EV subsidy if federal credit is axed

Investing.com -- California Governor Gavin Newsom said he would propose reinstating the state’s electric vehicle (EV) subsidy if the Trump administration eliminates the $7,500 federal EV tax credit.

The move underscores California’s commitment to advancing EV adoption, even without federal support. Newsom’s proposal would revive a program phased out in 2023 following the introduction of the Inflation Reduction Act (IRA).

Pro-EV policies like California’s could widen the gap in EV adoption rates among U.S. states, Barclays (LON:BARC ) analysts say, as federal policies shift.

Additionally, California’s emissions waiver, which allows the state to set stricter vehicle standards, could become a target under a Trump administration.

Source: Investing.com