California Offers $3,500 Rebate for First-Time Electric Car Buyers

California residents looking to purchase or lease a new zero-emission vehicle may be eligible for a $3,500 rebate under Governor Gavin Newsom's new MyFirstEV program, launched in August 2026. This incentive is designed to lower the upfront cost of electric vehicles, with the discount applied directly before the car is delivered to the buyer.

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MyFirstEV requires that the beneficiary resides in California and accesses a zero-emission vehicle for the first time.

The program, administered by the California Air Resources Board (CARB), requires participants to declare they have never owned or leased an electric vehicle before. Unlike some previous initiatives, MyFirstEV does not consider income level when determining eligibility for the rebate amount, meaning any California resident who meets the first-time buyer condition and selects an eligible vehicle can benefit.

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The income level does not modify the amount of MyFirstEV. Therefore, any resident of the state can access the incentive if they meet the condition of first-time buyer and choose a unit admitted by the program.

For new electric vehicles, the manufacturer's suggested retail price must not exceed $50,000 to qualify for the $3,500 rebate. Used electric vehicles can receive a $1,750 rebate if their price is up to $25,000 and they are part of manufacturer-certified pre-owned programs. The incentive covers battery-electric cars and hydrogen fuel cell vehicles, but explicitly excludes hybrids. An exception to the price limit exists for manufacturers headquartered in California.

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New cars can receive US$3500 if their manufacturer's suggested retail price does not exceed US$50,000. Used units can access US$1750 if they cost up to US$25,000 and are part of the manufacturers' used vehicle programs.

California Climate Investments detailed that MyFirstEV began on August 3, 2026, with funds distributed on a first-come, first-served basis, managed by each manufacturer's availability. Buyers do not need to submit a separate application form before visiting a dealership; the discount is integrated into the sales transaction. Potential buyers must confirm their eligibility and the availability of funds for their chosen vehicle brand with the dealership before finalizing the purchase. Vehicles ordered or acquired before a manufacturer officially participates in the program are not eligible for the incentive.

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The benefit covers battery-electric cars and hydrogen fuel cell vehicles. CalMatters confirmed that hybrids do not qualify for MyFirstEV.