California is bringing back a major EV incentive that could cut thousands of dollars from the price of a new electric car at the point of sale. Governor Gavin Newsom has confirmed the MyFirstEV program, which will offer $3,500 toward a new electric vehicle for Californians purchasing their first zero-emission model. Buyers choosing a used EV will be eligible for $1,750, provided the vehicle costs no more than $25,000.
The new rebate is designed to apply directly at the dealership, so buyers should not have to wait for a later tax credit or separate refund. The programme is expected to begin later this summer.
Most new EVs will need to stay below a $50,000 MSRP cap to qualify for the rebate. That could make lower-priced models from Chevrolet, Nissan, Tesla, Ford, Subaru, and Toyota more affordable, provided their manufacturers choose to participate.
California-based automakers are treated differently under the programme. Brands headquartered in the state are exempt from the $50,000 limit, which could open the door for more expensive vehicles from Rivian and Lucid.
Even so, buyers should not assume every Rivian or Lucid will qualify straight away. The incentive only applies to vehicles from participating automakers, and California has not yet released the final list.
The state is committing $135.5 million to the initiative, with participating manufacturers expected to contribute the same amount. This creates a combined $270 million fund for first-time EV buyers.
The programme arrives at a time when EV incentives have become less certain following the removal of the federal tax credit. California’s rebate will not make every electric car affordable, but it could bring the final price within reach for more first-time buyers already considering the switch.