Starting later this summer, any California family buying their first electric vehicle can walk into a dealership and drive home with $3,500 already off the price.

Governor Gavin Newsom on July 13 signed SB 168, a bill that creates California’s new ZEV instant rebate program, dedicating $135.5 million to an affordable clean-car future, to be matched by an equal contribution from participating automakers. That instant rebate is the centerpiece of a broader $600 million zero-emission vehicle (ZEV) investment agenda included in the 2026-27 state budget.

"In partnership with the legislature, these investments take direct aim at the affordability gap Trump and Republicans in Congress created when they repealed the federal EV tax credit, handing China a head start in the global clean car race, and leaving American workers and families to foot the bill for Trump’s reckless Middle East conflict and Big Oil giveaways," the news release issued through Governor Gavin Newsom's Office states.

How The Rebate Program Works

For California families who have been waiting for the right moment to go electric, that moment is coming later this summer. The MyFirstEV program will deliver $3,500 off the purchase of an electric vehicle right at the dealership. California’s $135.5 million state investment matched dollar-for-dollar by participating automakers, delivering a combined $270 million in total savings to California families at the point of sale.

Here’s what buyers need to know:

• $3,500 off new electric vehicles with an MSRP up to $50,000
• $1,750 off used electric vehicles sold for up to $25,000
• The rebate is open to any Californian buying their first ZEV

This investment is funded through the 2026-2027 state budget, delivering a balanced budget with no deficit, this year and next, that is structurally sound, all while preserving historic reserves and continuing investments that make California more affordable, competitive, and prepared for the future.

The bigger picture: $600 million for California’s clean transportation economy

The MyFirstEV instant rebate is part of a $600 million investment in California’s affordable, clean-vehicle future. Funded through Cap-and-Invest revenue and smog-abatement fees, today’s full package includes:

• $150 million for the Community Air Protection Program, which can support clean transportation projects
• $19.8 million for Californians with lower incomes through  Clean Cars 4 All
• $35 million for clean off-road equipment through the Air Quality Improvement Program
• $135.5 million for  California’s Clean Truck and Bus Voucher Incentive Project (HVIP)
• $130 million to replace polluting heavy-duty engines through the Carl Moyer Program 

California Doubles Down On Clean Transportation Investments

Despite Donald Trump’s efforts to cede the clean vehicle economy to China, California is ensuring that American workers and manufacturers can compete and win in the industries that will define this century.

In January, the state surpassed  2.5 million cumulative zero-emission vehicle sales, far exceeding its original goal of 1.5 million ZEVs by 2025. Last September, San Bernardino County made history by  welcoming the first hydrogen-powered passenger train  into revenue service in North America. In May, Governor Newsom launched a $1 billion rebate program for electric medium- and heavy-duty trucks, and in April 2025, announced $500 million for 1,000 clean school buses statewide. Demand for zero-emission bus and truck incentives has more than doubled year over year. 

The Golden State’s commitment extends beyond consumer incentives. In the latest  Clean Transportation Program Investment Plan Update, the CEC allocated $98.5 million in light-duty zero-emission vehicle (ZEV) infrastructure funding for fiscal year 2025-2026 to focus on Level 1 and Level 2 charging in locations with longer vehicle dwell times, including at-home charging with a specific focus on multifamily residences.

Governor Newsom’s electrification infrastructure agenda has driven historic investments in transportation that will benefit all Californians for decades to come. More than 29,000 California infrastructure projects are tracked at build.ca.gov.

A High Standard For American EV infrastructure  

California is tearing down barriers to ZEV deployment, accelerating EV charging station installations, and deploying infrastructure in hard-to-reach and low-income areas.

California is one of the top states for EV buyers and drivers. There are now  over 200,000 public and shared EV charging plugs statewide. EV chargers can be found at grocery stores, park-and-ride lots, and even gas stations, whereas shared EV chargers are typically located at apartment complexes, workplaces, doctors’ offices, sports facilities, and other parking areas with some level of restricted access. This statewide network of public and shared private chargers is in addition to the estimated 800,000 EV chargers installed in California homes.