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California won’t replace the federal EV tax credit due to budget limits, focusing instead on infrastructure and climate initiatives.
California Governor Gavin Newsom announced the state will not replace the expiring federal $7,500 electric vehicle tax credit, citing budget constraints and a shift toward infrastructure investment.
Despite earlier promises, Newsom said California cannot afford direct subsidies, blaming automakers and federal policy changes.
The state will continue advancing climate goals through expanded cap-and-trade funding, grid improvements, and environmental justice initiatives, while balancing fiscal responsibility with long-term sustainability.
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California no reemplazará el crédito fiscal federal para vehículos eléctricos debido a los límites presupuestarios, y en su lugar se centrará en iniciativas de infraestructura y clima.