California is introducing a new $3,500 instant rebate for first-time zero-emission vehicle buyers, part of a $135.5 million state initiative called MyFirstEV.
The program, signed into law by Governor Gavin Newsom, takes effect this summer and requires participating automakers to match the state contribution.
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The rebate applies to new electric vehicles with a manufacturer's suggested retail price (MSRP) of up to $50,000.
Used EVs priced at $25,000 or less qualify for a $1,750 rebate. Vehicles must have a curb weight under 8,500 lbs (3,856 kg).
California-Based Automakers Get Price Cap Exemption
A notable provision exempts automakers headquartered in California from the $50,000 price cap.
This means companies like Rivian can offer the rebate on vehicles priced above the limit.
The state acknowledges this clause may be legally challenged and includes a severability clause to preserve the rest of the program if the exemption is struck down.
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Newsom's office reported that California surpassed 2.5 million cumulative zero-emission vehicle sales in January, exceeding the state's goal of 1.5 million.
The state now has 200,000 public and shared EV charging plugs.
In a statement, Newsom criticized the Trump administration's elimination of the federal clean vehicle tax credit, saying California is accelerating its efforts to make clean cars more accessible.
Separately, Newsom signed a bill to modernize the Department of Motor Vehicles (DMV), including expanding the Mobile Driver License Pilot Program from 15% to 60% of eligible residents.
Over 3.5 million Californians have applied for a digital license since the program launched in August 2023.
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Other changes aim to reduce costs by eliminating certain mailed notices and printed driver handbooks.
