California launches $3,500 discount program for first-time electric car buyers

California residents looking to purchase their first zero-emission vehicle can now benefit from a $3,500 discount on select new models through the MyFirstEV program. This incentive is applied directly during the purchase or lease transaction, eliminating the need for a post-purchase rebate application.

To qualify for MyFirstEV, individuals must be first-time buyers or lessees of a zero-emission vehicle and sign a legal declaration confirming this. The program is administered by the California Air Resources Board (CARB). Eligible new vehicles must be model year 2026 or later, with a suggested retail price of $50,000 or less for manufacturers not based in California. Used vehicles must be priced at $25,000 or less and be at least two years old.

California has allocated $135.5 million to the MyFirstEV initiative, with participating manufacturers matching the state's investment dollar-for-dollar. While income level does not affect the $3,500 discount amount, lower-income individuals can combine MyFirstEV with other state incentives, potentially reaching up to $12,000 in total savings through programs like Driving Clean Assistance Program and Clean Cars 4 All. Plug-in hybrids are excluded as they still utilize gasoline engines.