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.
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.
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.
Other changes aim to reduce costs by eliminating certain mailed notices and printed driver handbooks.
