Newsom Reverses Pledge to Replace Federal EV Tax Credit

Sep. 24, 2025 | |

California Gov. Gavin Newsom says there will be no state-funded replacement for the $7,500 federal tax credit for EV buyers that expires next week. The announcement reverses a pledge Newsom made in November, months before the federal credit was officially deleted with the signing of President Donald Trump’s One Big Beautiful Bill Act.

SFGate’s Stephen Council was among those present at San Francisco’s California Academy of Sciences Friday morning, when Newsom signed six energy and climate bills. The governor then shared the EV tax credit news in a press conference.

“We can’t make up for federal vandalism of those tax credits, but we can continue to make the unprecedented investments in infrastructure, which we’re doing,” Newsom said.

Newsom is expected to sign the California CARS Act this week. The bill is modeled after the Federal Trade Commission’s stalled CARS Rule and adds a three-day cooling off period for buyers of pre-owned vehicles sold for $50,000 or less.

Read more at SFGate