Newsom Challenges Trump on Electric Vehicle Tax Credits

California will step in and provide rebates to eligible residents who buy electric vehicles if President-elect Donald J. Trump ends the $7,500 federal E.V. tax credit, Gov. Gavin Newsom said on Monday.

“We will intervene if the Trump administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California,” Mr. Newsom, a Democrat, said in a statement. “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.”

Mr. Newsom’s proposal comes as California officials gird for an extended battle with the incoming Trump administration over environmental policy, immigration and other issues. As he did during his first term, Mr. Trump is expected to try once again to block California’s authority to set auto emissions limits that are stricter than federal standards.

Already, Mr. Newsom has called a special session of the California Legislature for December, in part to discuss an increase in funding for litigation. During Mr. Trump’s first term, California sued his administration more than 120 times.

Mr. Trump cannot unilaterally eliminate the electric vehicle tax credits, which are part of the Inflation Reduction Act of 2022. Congress would have to amend the law or pass a new one to erase the credits. But his transition team has indicated that the president-elect wants the credits gone.

Under the law, consumers can lower the purchase price of an electric, plug-in hybrid or fuel-cell vehicle by up to $7,500 for a new vehicle and up to $4,000 for a used one. There are some restrictions, including income ceilings, for those who qualify.