California to offer a novel $3,500 rebate for first-time EV buyers

California has a new rebate program for people buying their first electric vehicle. Called MyFirstEV, it offers $3,500 off a new EV priced at $50,000 or less, or $1,750 off a used EV priced at $25,000 or less. The rebate applies at the point of sale, so buyers get the discount right away instead of waiting to claim it on their taxes. The program launches later this summer and is funded with $270 million, half from the state and half from automakers including Ford, GM, Honda, Hyundai, Kia, Lucid, Mitsubishi, Nissan, Rivian, Subaru, Tesla, Toyota, and Volvo. There's no income limit, but buyers will need to attest they haven't owned an EV before.

This fills a gap left by the federal EV tax credits (once worth up to $7,500 for new vehicles and $4,000 for used ones), which Congress eliminated at the end of September 2025. EV sales have dropped nationally since then. California is betting that money spent convincing someone to try an EV for the first time pays off more than subsidizing buyers who'd purchase one anyway, since surveys show most EV owners stick with electric for their next vehicle.

If you're in California and have never owned an EV, this rebate is worth knowing about before you buy or lease. If you're elsewhere, similar incentives already exist in states including Connecticut, Delaware, Illinois, Maine, Massachusetts, New Jersey, New York, and Rhode Island, though terms vary, so it's worth checking what your own state currently offers.