First-time electric-vehicle buyers in California can soon receive an instant rebate of up to $3,500, thanks to a new bill that's part of a broader zero-emission vehicle investment agenda in the 2026-27 state budget.

The MyFirstEV program is set to take effect later this summer, participating automakers matching the state’s monetary investment to deliver a combined $270 million in total savings.

The initiative closely follows the end of a federal EV tax credit last fall that had increased EV purchases and leases, which have since dropped across the country. Last year the federal government also nixed a California ban on sales of new gas-powered vehicles by 2035.

How the new California EV rebate program will work:

• $3,500 off new EVs with a manufacturer’s suggested retail price of up to $50,000
• $1,750 off used EVs sold for up to $25,000

The program is part of a $600 million investment California is making toward what it calls a clean-vehicle future. The full package includes a Community Air Protection Program for those with lower incomes, a program for “clean” off-road equipment, a Clean Truck and Bus Voucher Incentive Program, and a plan to replace heavy-duty engines.

“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,” said Gov. Gavin Newsom.  

In the country’s EV leading state, public charging infrastructure is also a priority. According to the California Energy Commission, the state has over 200,000 public and shared EV charging plugs, plus an estimated 800,000 EV chargers installed in California homes. Earlier this year the commission approved funding to “accelerate the installation of publicly available fast chargers across the state.”