California is offering a $3,500 point-of-sale rebate for first-time electric vehicle buyers, as part of a $600 million incentive package signed into law by Gov. Gavin Newsom.
The rebate program, called “MyFirstEV,” allocates $135.5 million for the rebates, which can be matched by participating automakers for a total of $270 million in savings for consumers.
It is expected to launch later this summer.
The rebate is open to any California resident buying their first EV, with the amount varying depending on the type of vehicle and its price.
For new zero-emissions vehicles with a manufacturer’s suggested retail price of up to $50,000, the rebate is $3,500.
For used EVs priced up to $25,000, the rebate is $1,750.
However, for California-based EV manufacturers, such as Rivian and Lucid, there is no price cap to qualify for the rebate.
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This means that buyers of these vehicles can receive the full $3,500 rebate, regardless of the vehicle’s price.
The investment aims to address the affordability gap created after Congress repealed the federal EV tax credit in September 2025, which offered up to a $7,500 point-of-sale tax credit on the purchase of a new EV or $4,000 towards a used model.
The average vehicle transaction price topped $50,000 for the first time ever in September 2025, making affordability a significant factor in EV sales.
According to Kelley Blue Book data, EV sales volume in the U.S. hit an all-time high in the third quarter of last year, with 438,487 units sold.
During the fourth quarter of 2025, Californians purchased 79,000 new ZEVs, accounting for 18.9% of new car sales in the state during the quarter.
One aspect of this development is that it may help make EVs more accessible to a wider range of people, particularly those who may have been priced out of the market previously.
By providing a rebate, the state is essentially reducing the upfront cost of purchasing an EV, which could encourage more people to consider buying one.
To further support EV adoption in California, the state has continued to expand its charging infrastructure.
Gov. Newsom announced last September that the state’s public and shared EV charging ports exceeded 200,000, which is 68% more than the number of gasoline nozzles statewide, according to the California Energy Commission.
“With our new instant rebate program for electric vehicles, we’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets,” Newsom said in a statement.
As California leads the world toward a clean future, the message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.
The program is being fully funded in the state’s 2026-2027 budget, and the credit is applied directly at the dealership at the time of purchase.
California has historically been a leader in EV sales in the U.S.
