California Gov. Gavin Newsom has signed SB 168, creating the MyFirstEV program, which will offer first-time zero-emission vehicle buyers a $3,500 instant rebate at the point of sale. Officials say the state’s $135.5 million investment will be matched dollar-for-dollar by participating automakers for a combined $270 million in consumer savings.

The rebate applies to new EVs with an MSRP of up to $50,000. Pre-owned EVs priced up to $25,000 will qualify for a $1,750 rebate. MyFirstEV is expected to launch later this summer as part of a broader $600 million ZEV investment package included in California’s 2026–’27 state budget.

In a release, Newsom says the program is intended in part to offset the loss of a $7,500 federal EV tax credit.

“California is putting its foot on the accelerator. With our new instant rebate program for electric vehicles, we’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets.”

The signing marks a reversal of Newsom’s own reversal: After stepping back from a pledge to replace the federal EV tax credit when it expired last September, Newsom is now moving forward with direct consumer incentives. The federal credit was eliminated a year ago under the Trump administration’s One Big Beautiful Bill Act.

California has surpassed 2.5 million cumulative ZEV sales, according to the release.

Read more at CA.gov