People in California shopping for their first electric vehicle can cut several thousand dollars from the price at the point of sale.
What happened?
The state has now rolled out an immediate incentive of up to $3,500 for eligible purchasers, according to KQED.
Through a new program called MyFirstEV, California is directing $135.5 million toward roughly 73,000 new zero-emission vehicle purchases, per KQED.
Governor Gavin Newsom said the idea is to give first-time EV buyers the discount upfront instead of making them wait to claim a tax credit later.
According to the MyFirstEV website, "the program reduces upfront ZEV costs by partnering with automakers through grant agreements to 'buy down' the sticker price, with Original Equipment Manufacturers matching the state's contribution."
Eligible new vehicles must be model year 2026 or newer, priced below $50,000, powered by either batteries or hydrogen fuel cells, and be from one of 15 automakers taking part in the program. Used EVs are also included if they cost less than $25,000, though the rebate for those vehicles is limited to $1,750, per KQED.
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California introduced the program after President Donald Trump moved to eliminate federal clean energy tax breaks, including credits of $7,500 for new EVs and $4,000 for used EVs.
President Trump has also sought to stop California's EV sales mandate and diesel engine rules, but the state is challenging those efforts in court, according to KQED.
Why does it matter?
For many households, the main barrier to buying an EV is the sticker price. Receiving the savings immediately at the dealership could make the choice easier, especially after the end of federal incentives made some cleaner vehicles harder to afford.
The move also reflects California's broader effort to cut harmful gas emissions and lower pollution from the transportation sector.
To help more people access the benefits of MyFirstEV, the program includes both new and used vehicles. Buyers choosing a newer car can get a larger rebate, while shoppers with tighter budgets may still benefit from the used-EV incentive.
Lower-income Californians may be eligible for additional support through the Clean Cars 4 All program, which offers incentives larger than the standard MyFirstEV rebate, according to KQED.
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