Drivers in US state could get $7,500 payout in governor’s showdown with Donald Trump – but only if they own certain car
A $7,500 compensation could be given to drivers in one US state as their governor squares off against Donald Trump, the incoming president.
California Governor Gavin Newsom is opposing President Joe Biden’s drive for electric automobiles and is aiming to challenge the Trump administration.
According to Reuters, President Biden introduced a tax credit of up to $7,500 to encourage the purchase of electric vehicles, something that Trump intends to eliminate when he assumes office in January.
Governor Newsom said in a statement on Monday that if Trump eliminates the EV rebate, he will still provide it to Californian drivers.
“Consumers continue to prove skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a statement.
“We are reaffirming our commitment to clean air and green jobs in California by stepping in if the Trump Administration removes the federal tax credit.
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“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 governor stated.
According to a press release from the governor’s office, California’s electric vehicle incentive program, the Clean Vehicle Rebate Program, which terminated in November of last year, would be relaunched to fund EV credits in the Golden State.
EV customers were previously eligible for up to $2,500 per vehicle under this now-defunct state rebate program.
According to hints from Newsom’s office, a revised plan might incorporate additional steps to promote competition and innovation in the EV sector.
If implemented, the proposal would seek to sustain California’s clean energy industry’s growth.
To date, almost two million zero-emission automobiles have been sold in the state.
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Californians purchased a record 446,961 new electric vehicles in 2023, a 29% increase over the year before.
According to the World Population Review, California has the highest average petrol costs in the US, with standard gasoline costing $4.96 per gallon.
Higher taxation and more stringent environmental laws are two of the causes of this.
In an effort to curb the skyrocketing cost of gas, Newsom signed a new measure into law last month.
Electric vehicles vs gas
Pros and cons of electric automobiles versus those that run on gasoline
EV Advantages:
- Convenient (when charging at home)
- Cheaper (depending on state or city)
- Cheaper maintenance, due to lack of mechanical parts
- Great for commuting
- Reduced CO2 emissions
- Federal and state tax incentives
- More performance (speed, handling – depending on the make and model)
EV drawbacks
- Higher initial cost
- Higher insurance rates
- More frequent tire and brake replacement intervals
- Higher curb weight (thus causing more rapid wear on crucial parts)
- Low resale value
- High depreciation rates
- Lack of charging infrastructure
- Unreliable public charging (related: slow charging times)
- Poor winter and summer performance
- Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
- Range anxiety
PROS OF GAS:
- Highly developed refueling infrastructure
- Fast refueling
- Cheaper insurance rates, depending on make, model, and configuration
- Established repair industry
- Lower initial cost
- Higher range before refueling, especially with hybrids
- Many manufacturers produce nearly emission-less engines
- Cheaper refueling, depending on the location
CONS OF GAS:
- Finite resource (related: heavy dependence on petroleum)
- Carbon emissions/greenhouse gases
- Higher repair costs
- Higher insurance rates, depending on make, model, and configuration
- Varying costs at the pump, depending on state, city, and county
Source: Perch Energy, AutoWeek, Car & Driver
Trump has pledged to do away with federal EV tax credits, which are currently worth up to $4,000 for used cars and $7,500 for new ones.
However, Trump has loosened his position on them after Elon Musk, the CEO of Tesla, turned into a significant adviser and supporter of the president.
The declaration was made just one week before Newsom requested an emergency special session after the election for president.
In the event that the incoming Trump administration assaults the blue state again, Newsom has promised to take legal action.
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Newsom has previously retaliated against the Republican president’s initiatives.
The Democrat official filed over 100 lawsuits against Trump during his first year in office.
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