California Governor Gavin Newsom on Monday signed SB 168 into law, giving first-time EV buyers up to $3,500 in instant rebates at the dealership.
The MyFirstEV program will roll out later this summer, and it will be part of the state’s larger zero-emission vehicle (ZEV) agenda. California will allocate $135.5 million to the program, and participating automakers will match the state’s investment.
The instant rebates apply to both new and used EVs. On new cars, first-time buyers can get up to $3,500 off vehicles with an MSRP of up to $50,000. On used EVs, they can receive up to $1,750 off vehicles priced at $25,000 or less.
The $50,000 cap vanishes for EV manufacturers headquartered in California. That means buyers will be able to claim the rebate on higher-priced Lucid and Rivian models, but not on those from Texas-based Tesla. Those interested in getting the rebate on a Tesla will have to choose eligible sub-$50,000 versions of the Model 3 or Model Y, Electrek reports.
These are preliminary estimates. The final list of eligible vehicles won’t be known until California announces the participating companies. The California Air Resources Board tells Reuters it hopes to announce the partnering automakers next month.
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California’s new EV discount arrives close to a year after President Trump’s Big Beautiful Bill killed the $7,500 federal EV tax credit. Gov. Newsom, a Democrat, didn’t miss the opportunity to take a swipe at him. “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,” Newsom said in a statement. “No one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.”
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Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
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