California Gov. Gavin Newsom hasn't forgotten the federal government's sudden reversal of electric vehicle subsidies, and, according to Bloomberg, he recently detailed the state's plans to fill the funding gap it left.
In September, a long-standing federal EV credit of $7,500 for new car purchases and $4,000 for preowned EVs was a rescinded earlier than planned, costing American automakers billions.
In a Jan. 20 statement, Newsom's office addressed topics discussed at the recent World Economic Forum in Davos, Switzerland.
In it, Newsom referenced his Jan. 9 state budget proposal, which included a "new $200 million incentive program" to further boost EV adoption in the state and address "the loss of the federal ZEV tax credit while supporting American automotive innovation at a critical moment."
The statement also acknowledged an interesting trend in state car sales in the fourth quarter of 2025, following the rollback of the federal EV credit. Overall, 18.9% of new cars sold were EVs, accounting for nearly 30% of all vehicle sales in Q4.
Per Bloomberg, Newsom's proposed EV replacement credit would apply to vehicles priced at $55,000 and under. Electric vans costing $80,000 or less would be eligible, as would used cars priced at up to $25,000.
Perk up the winter blues with natural, hemp-derived gummies Camino's hemp-derived gummies naturally support balance and recovery without disrupting your routine, so you can enjoy reliable, consistent dosing without guesswork or habit-forming ingredients. Flavors like sparkling pear for social events and tropical-burst for recovery deliver a sophisticated, elevated taste experience — and orchard peach for balance offers everyday support for managing stress while staying clear-headed and elevated.
Learn more → |
Roughly 12% of Americans live in California, which overtook Japan to become the world's fourth-largest economy last April. As such, statewide policies like Newsom's proposal have an outsized effect nationwide.
Sustained EV adoption in a state as populous as California in the aggregate likely means a significant reduction in tailpipe pollution, and Newsom's team and state boards are committed to taking action.
On Thursday, Reuters covered California's talks with Detroit automakers that were part of Newsom's and the state's larger efforts to challenge recent federal rollbacks of what the outlet described as "landmark federal vehicle emissions standards."
California Air Resources Board chair Lauren Sanchez told Reuters that dismantling clean air standards has made the agency more committed than ever to climate-focused policy while strategically balancing and prioritizing initiatives like the EV replacement credit.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
"We're prepared to fight, and we're prepared to also explore alternatives at the same time," Sanchez said.
|
What's the most you'd pay per month to put solar panels on your roof if there was no down payment?
Click your choice to see results and speak your mind. |
$200 or more 💰 
Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.
Cool Picks
