By Steven Symes 
Despite pledging to do so, California Governor Gavin Newsom will not be offering a $7,500 EV tax credit after all. Many were hoping the promise made before wasn’t empty, but it turns out people who shell out for an electric car won’t be able to make their neighbors help pay for a portion of it.
This news comes as the September 30 deadline for the federal EV tax credits approaches. It turns out the reason for this rather unsurprising development is rather fundamental.
It all comes down to one thing: cost. The state of California can’t foot the bill for such a measure, reports Bloomberg. According to Governor Newsom, the removal of the tax incentives by Republicans is “federal vandalism.”
Considering under the federal program people who lived in other states helped finance vehicle purchases for people living in California, we’re not sure how that even makes sense. But most politicians get rather testy when they’re told they can no longer raid private citizen’s earnings for their pet programs.
Some automakers were really banking on California offering the $7,500 EV tax credit, picking up where the federal government is leaving off. There was a proposal for a $5,000 incentive, but California can’t even float that much.
After all, the Golden State is out of cash, running a budget deficit was it keeps spending money like crazy. It’s almost like there are consequences to actions.
During a speech announcing the disappointing development, Governor Newsom made sure to threaten GM CEO Mary Barra, accusing her of “selling out” his state by pushing on US Congress to end the EV mandate in California.
However, Newsom has made a fresh batch of promises, saying next year California will offer a new EV subsidy program, even though it hasn’t had one since 2023. We can’t wait to see who he blames when that also falls apart.
Image via Tesla, Gavin Newsom/X