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California could soon offer first-time EV buyers up to $3,500 off

The rebate is designed to show up immediately instead of being claimed later through taxes.

Two people looking at an electric vehicle plugged into a charger.

Photo Credit: iStock

California drivers considering their first electric vehicle will soon get a new state rebate to help lower the upfront cost from a wide range of automakers.

As Cars.com reported, state officials are getting ready to introduce a rebate that could lower the cost of a qualifying buyer's first EV from over 13 brands by up to $3,500.

What's happening?

Lowering the upfront cost of an EV is the aim of the upcoming MyFirstEV program, which is being developed to help eligible first-time buyers. 

Shoppers who qualify could receive $3,500 toward an eligible new zero-emission vehicle or $1,750 toward an eligible used one, the state revealed in a press release from the Governor's office.

Vehicle makers have to opt in and chip in as much as the state to entitle buyers to the rebate. Fortunately, Cars.com noted that 13 of them have taken up the state on the offer. Ford, GM, Honda, Hyundai, Kia, Lucid, Mitsubishi, Nissan, Rivian, Subaru, Tesla, Toyota and Volvo all are matching the state's $135 million to make the deal possible.

The rebate is designed to show up immediately instead of being claimed later through taxes. As Cars.com explained, participating dealers would subtract the discount when a qualifying vehicle is bought or leased.

As Canary Media reported, the program is slated to be officially introduced "later this summer," with some details still to be decided.

The federal EV incentive ended in September 2025, so the timing of this new initiative couldn't be better for some households looking to sidestep some of the area's notoriously high gas prices.

Why does it matter?

For many shoppers, the biggest obstacle to buying an EV is the higher sticker price upfront. A rebate applied immediately at the dealership can make a cleaner vehicle more attainable, especially for first-time buyers working within tighter budgets.

EVs do not burn gasoline, meaning they can help reduce tailpipe pollution that contributes to unhealthy air. In a state that has long grappled with smog and transportation-related pollution, helping more people make the switch could bring both public health and climate benefits.

The program also includes used EVs. While new electric models often draw the most attention, used EVs may be a more realistic option for many families. Offering $1,750 off a qualifying used model could help open the door for buyers who might otherwise assume an EV is beyond their price range.

With the federal credit now gone, state-level action could also help sustain momentum at a time when some consumers may be reconsidering whether the switch still makes sense financially.

What's being done?

By making the rebate available instantly through participating dealerships, the state is setting up a system that could be much simpler than incentives that require extra tax paperwork or a long wait for reimbursement, Cars.com noted.

Final program details are still to be announced, including which vehicles qualify, what income limits apply, and which dealerships are participating. 

For first-time buyers who have been interested but hesitant, a point-of-sale rebate could make the math work sooner than they expected. If the program launches as planned, MyFirstEV could offer California residents a timely new path into cleaner transportation.

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