Energy & Environment
Jeff Luse | 11.26.2024 3:15 PM
The incoming Trump administration is considering rolling back the $7,500 federal tax credit for electric vehicles (E.V.s). This week, Democratic California Gov. Gavin Newsom said that he would try to restart California's defunct Clean Vehicle Rebate Project (CVRP) if the federal tax credit is repealed. Like countless subsidies and tax credits before it, this program was expensive for taxpayers and not effective in meeting its goals.
The rebate program ran from 2010 to 2023 and offered a direct-to-consumer rebate for new low-emissions vehicles that met certain criteria. Low- and moderate-income individuals and households were eligible for a rebate of $7,500 for a battery and fuel cell E.V. and $6,500 for a hybrid vehicle. Higher-income individuals (making up to $135,000 annually) and families (making up to $200,000 annually) could receive slightly discounted rebates. Any customer earning more than this could only qualify for a new fuel cell vehicle credit. Funding for the rebate program was drawn from the state's........