SACRAMENTO, Calif. — The state of California may introduce state tax incentives for electric vehicle (EV) purchases in response to the potential abolition of the federal EV tax credit by the incoming Trump administration, as highlighted by Governor Gavin Newsom on Monday.

Newsom intends to propose a revamped version of the state’s Clean Vehicle Rebate Program, which was discontinued in 2023 after successfully supporting 594,000 electric cars and contributing to a reduction of 456 million gallons of fuel, according to an announcement from Newsom’s office.

The financing for this new rebate initiative could originate from the Greenhouse Gas Reduction Fund, which relies on contributions from polluters participating in California’s cap-and-trade scheme, as stated in the release.

While specific details regarding the program’s overall cost and the mechanics of the rebate system have not been disclosed, Newsom is anticipated to reveal more information during a visit to Kern County later on Monday.

California has reached a significant milestone, with over 2 million zero-emission vehicles sold, establishing the state as a frontrunner in the promotion of clean vehicle technology.

During his campaign, Donald Trump pledged to eliminate federal EV tax credits, which can offer up to $7,500 for the purchase of new electric vehicles and up to $4,000 for used ones. However, Trump’s position appeared to shift when Tesla CEO Elon Musk began to advocate for and advise him.

Previously, California’s now-defunct Clean Vehicle Rebate Program provided up to $2,500 in rebates for electric cars. Any forthcoming rebate initiative is expected to incorporate modifications aimed at fostering innovation and competition within the zero-emission vehicle market, according to the announcement.