California launches instant EV rebates for first-time buyers
Under the programme, eligible Californians purchasing their first EV will receive an immediate rebate at the dealership. Buyers of new electric vehicles with a manufacturer’s suggested retail price of up to $50,000 will qualify for a $3,500 discount, while used electric vehicles priced at up to $25,000 will receive a $1,750 rebate.
California has allocated $135.5 million to the programme through the 2026-27 state budget. Participating automakers will match the funding dollar for dollar, creating a combined incentive pool of $270 million.
Announcing the programme, Newsom positioned the initiative as a response to changes in US federal policy. “Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. California is putting its foot on the accelerator,” said the governor.
“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. As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.”
According to the state government, the rebate programme aims to address affordability concerns following the repeal of the federal EV tax credit. California described the measure as part of a broader effort to maintain competitiveness in the clean vehicle sector and support domestic manufacturing and employment.
Plans for the MyFirstEV initiative were first announced earlier this year. It forms one element of a larger clean transportation investment package, which, for example, also includes the state’s Clean Truck and Bus Voucher Incentive Project (HVIP). In addition, California launched a $1 billion incentive programme for electric medium- and heavy-duty trucks in May, while a separate $500 million initiative announced in 2025 supports the deployment of 1,000 clean school buses.
The Golden State also emphasised that it had surpassed 2.5 million cumulative ZEV sales in January, exceeding its original target of 1.5 million vehicles by 2025. The California Energy Commission has earmarked $98.5 million for light-duty charging infrastructure in the 2025-26 fiscal year, with a focus on residential and destination charging. According to the state government, California now has more than 200,000 public and shared charging points and an estimated 800,000 chargers installed at homes across the state.
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