If you live in California and hoping for a tax credit after purchasing an electric vehicle, think again. The state is doing away with it and blaming GM.
California Governor Gavin Newsom has made it official: His state won’t be replacing the $7,500 federal tax credit for electric vehicle buyers that’s set to expire at the end of September. With this, Newsom has gone back on his previous stance, formerly pledging to restart the program with California’s own EV subsidies.
The governor blamed budgetary constraints, but he also pointed a finger at another thing he believes is holding the state back: General Motors Co. and the automaker’s fight over climate rules. Though GM continues to make big changes of its own, Newsom said the company destroyed all progress made since the start of the California Air Resources Board in 1967.
Governor Newsom said the state simply didn’t have the billions of dollars that would have been required annually in order to fill the gap left by the loss of federal EV credits. In place of new credits, he committed to giving more state funds to EV charging infrastructure.
