Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav At the end of last September, electric vehicle adoption in the US began to crater. That followed the abolition of the IRS clean vehicle tax credit as part of a series of moves by President Trump and congressional Republicans to undermine energy efficiency and pollution control measures. Until then, buyers of some EVs could claim up to $7,500 from the purchase as part of the IRS Section 30D credit, assuming the EV was below the price cap and the buyer earned less than the income cap. Since then, EV sales have dried up, and automakers have canceled entire product lines as they face the reality of a US government that has soundly rejected moving past oil dependence.
But EV buyers in California aren’t quite as unlucky as their peers in the other 49 states and the District of Columbia. Yesterday, California Governor Gavin Newsom signed a new EV rebate into law for residents of the Golden State.
Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. California is putting its foot on the accelerator. 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. As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.
California’s new MyFirstEV Zero Emissions Vehicles instant rebate program will provide a $3,500 rebate at the point of purchase for a California resident buying their first EV, so long as that EV costs less than $50,000. Additionally, there’s a $1,750 rebate for used EVs that cost less than $25,000.
The latest state budget allocates $135.5 million to partially fund the rebate program; participating automakers will collectively contribute another $135.5 million to MyFirstEV as well.
However, according to Electrek, the program has exemptions for California-based automakers. As long as an EV manufacturer is headquartered in the state—like Rivian and Lucid—its products are not subject to the price cap. Despite being founded in California by Martin Eberhard and Marc Tarpenning, current Tesla CEO and political activist Elon Musk famously moved the HQ to Texas in a fit of pique following his refusal to obey public health laws during the COVID-19 pandemic. Only new Tesla EVs that cost less than $50,000, therefore, will be eligible for a rebate for a first-time EV buyer in California.
California has not announced the list of participating manufacturers yet.
