PolicyJuly 13, 2026·California

California Offers Instant $3,500 First-Time EV Rebates

California's MyFirstEV program will knock $3,500 off qualifying new EVs and $1,750 off used ones at the dealership later this summer, backed by a $270 million state-and-automaker pool for first-time zero-emission buyers.

Source: Office of Governor Gavin Newsom

Official portrait of California Governor Gavin Newsom
Photo: Charles Ommanney / Office of the Governor of California / Public domain

SACRAMENTOCalifornia is trying to replace a vanished federal tax credit with something you can actually see on a dealership sheet.

On July 13, Governor Gavin Newsom signed SB 168 creating MyFirstEV, a point-of-sale rebate for residents buying their first zero-emission vehicle. Later this summer, eligible new EVs with an MSRP up to $50,000 get $3,500 off at signing. Qualifying used EVs sold for up to $25,000 get $1,750 off.

The math is deliberate. The state puts up $135.5 million, matched dollar-for-dollar by participating automakers, for about $270 million in total customer savings. That sits inside a broader $600 million zero-emission vehicle package in the 2026-27 budget, alongside clean truck and bus money and programs that replace older, dirtier cars.

There is no household income cap. Eligibility is gated by vehicle price, first-time ZEV attestation, California residency, and a curb-weight limit of 8,500 pounds that keeps the program on light-duty passenger vehicles. The California Air Resources Board is still locking down manufacturer and dealer agreements, with participating automakers expected to be named next month.

One carve-out matters for Irvine, Santa Clara, and San Francisco shoppers cross-shopping Rivian or Lucid: EV-only manufacturers headquartered in California are exempt from the $50,000 new-vehicle MSRP cap. In practice that currently helps Rivian and Lucid, whose entry prices sit above the cap that applies to everyone else. Tesla moved its headquarters to Texas in 2021, so only sub-$50,000 Model 3 and Model Y configurations clear the ordinary price gate.

If you live in an Irvine condo, a San Gabriel Valley townhouse, or a rental in Koreatown without Level 2, the rebate does not invent a charger. It does change the out-the-door number on a first EV once the program opens. Compare it against Canada's ongoing Electric Vehicle Affordability Program if your household shops both sides of the border, and run our hybrid versus EV monthly cost calculator before you assume the sticker win survives insurance and charging.

For apartments and HOAs, start with our best EVs for condo living guide and the Southern California region page. A $3,500 instant cut is useful only if the car can charge where you park on Tuesday night.

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