California offers $3,500 EV rebate for first-time buyers

California Governor Gavin Newsom signed a new state law on Monday, July 13, 2026, creating an instant rebate program for first-time electric vehicle buyers. The "MyFirstEV" program, set to take effect later this summer, aims to counteract a national decline in EV sales following the termination of a federal tax credit last year.

The program offers a $3,500 discount on new zero-emission vehicles with a manufacturer's suggested retail price under $50,000. For used EVs, a $1,750 rebate is available for vehicles priced under $25,000. The discount will be applied directly at the dealership at the time of purchase, eliminating the need for buyers to file for a credit later.

Funding for the initiative totals $270 million, with half coming from California's 2026-2027 state budget and the other half matched by participating automakers. The program is part of a larger $600 million state investment in clean transportation, which also includes funding for air quality programs, clean truck incentives, and charging infrastructure.

A notable provision in the law exempts automakers headquartered in California from the $50,000 price cap for new vehicles. This exception benefits companies like...