California enacts $3,500 rebates on some EVs

Technology California enacts $3,500 rebates on some EVs Comments: by Finya Swai - 07/14/26 2:35 PM ET Comments: Link copied by Finya Swai - 07/14/26 2:35 PM ET Comments: Link copied

NOW PLAYING

California will begin offering instant rebates of up to $3,500 to first-time electric vehicle (EV) buyers later this summer, replacing some of the incentives lost after the Trump administration phased out EV and clean energy tax credits.

California Gov. Gavin Newsom (D) on Monday signed new legislation establishing a $270 million rebate program for California residents called MyFirstEV. It will provide a point-of-sale rebate for eligible Californians purchasing their first zero-emission vehicle.

The program is funded by both a state budget and automakers. It gives a $3,500 rebate for new EVs with a suggested retail price of up to $50,000, and a separate $1,750 rebate for used EVs sold for up to $25,000.

Newsom cast the program as a solution to the Trump administration’s rollback of a $7,500 federal EV tax credit and a $4,000 credit for used EVs, which has led to a decline in sales in the U.S.

“Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter,” Newsom said in a statement. The California Democrat said the program will make it easier for families to purchase vehicles that are better for the environment while providing relief to their wallets.

“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.”

The EV rebates are part of a broader $600 million zero-emission vehicle investment in California’s 2026-27 budget. The spending plan also includes funding for clean truck and bus incentives, as well as air protection projects and programs designed to help low-income Californians replace their older and higher-polluting vehicles.

EV sales accounted for more than 20 percent of car sales last year in California, according to the state’s Energy Commission, and it is the largest EV market in the country.

A previous rebate program in the state, which spent nearly $1.5 billion to subsidize EV purchases over a 10-year period, ended in 2023.

Add as preferred source on Google Tags California Donald Trump Electric vehicles Gavin Newsom Gavin Newsom MyFirstEV rebate program

Comments: Link copied