California Announces $3,500 Instant Rebate for New EV Purchases, Available Now
Electric-vehicle-curious Californians can now receive an instant $3,500 rebate when they purchase their first EV through a new state program.
Gov. Gavin Newsom announced Friday that $135.5 million is available for “MyFirstEV,” enough to pay for about 73,000 new zero-emission vehicles.
These rebates come after President Donald Trump ended federal tax credits for a number of clean energy technologies, including a $7,500 tax credit for new EVs and a $4,000 tax credit for used EVs. Trump also attempted to block the state’s EV sales mandate and its diesel engine rules, though California is currently fighting these challenges in court.
Despite federal headwinds, California is pushing forward with its own incentives to protect public health, reduce the greenhouse gas emissions and, according to Gov. Gavin Newsom, support California-based companies and reduce dependence on petrol states — a nod to the impacts the war in Iran had on fuel prices across the country.
“We’re past the debate,” Newsom said Friday in Alameda County, at a press conference where he called gasoline an inferior product.
Newsom also said that this purchase credit is about giving consumers a choice. In July, the California Energy Commission reported that EVs currently represent 19% of new car sales — a 3% increase just this year.
The state program covers both battery electric vehicles and hydrogen-powered, fuel cell electric vehicles model year 2026 and newer that are under $50,000.
It also covers used vehicles, though the rebate will only go up to $1,750 for pre-loved EVs that cost less than $25,000.
Low-income residents are eligible for larger incentives through the existing Clean Cars 4 All program.
Research indicates that Californians could see savings for years after purchase. A report from Yale found that the electric equivalent of a gallon of gasoline is just $2.72 in California. The average price of gasoline in the state, by comparison, has not consistently dipped below $4.00 since 2021, according to the Energy Information Administration.
The vehicles must be purchased through one of the 15 participating automakers, who will match the government’s investment dollar-for-dollar.
Californians interested in buying their first EV can check out KQED’s guide for more information on the credits and how to get one.