California Governor Gavin Newsom on July 13 signed SB 168, launching the MyFirstEV program that will hand first-time zero-emission vehicle buyers a $3,500 instant rebate at the dealership starting later this summer. The point-of-sale discount is backed by $135.5 million in state funding and matched dollar-for-dollar by participating automakers, for a combined $270 million in consumer savings — the centrepiece of a broader $600 million ZEV package in the 2026-27 state budget.
How MyFirstEV Works
Unlike the old application-based California Clean Vehicle Rebate Project, MyFirstEV is applied at the dealership: eligible buyers walk out with the $3,500 already knocked off the price on new EVs with an MSRP up to $50,000, or $1,750 off used EVs sold for up to $25,000. The programme is open to any Californian buying their first ZEV, and is designed to fill the affordability gap left by Congress's repeal of the federal EV tax credit.
A Carve-Out That Benefits Rivian And Lucid
SB 168 waives the $50,000 MSRP cap for EVs built by California-headquartered, EV-only automakers whose corporate management and staff are based in the state as of January 1, 2026. In practice, that carve-out benefits Rivian (engineering HQ in Irvine, cheapest models around $58,000) and Lucid (Bay Area, starting near $71,000). Tesla's cheapest Model 3 trims squeak in under the cap, but the popular Model Y and Cybertruck do not, effectively raising the price gap between the incumbent and the two California-based challengers.
Part Of A $600M Clean-Vehicle Push
Beyond MyFirstEV, the package includes $150 million for the Community Air Protection Program, $19.8 million for Clean Cars 4 All, $35 million for clean off-road equipment, $135.5 million for the Clean Truck and Bus Voucher Incentive Project (HVIP), and $130 million to replace polluting heavy-duty engines through the Carl Moyer Program. California surpassed 2.5 million cumulative ZEV sales in January, and now operates more than 200,000 public and shared EV charging stations statewide.
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Reporting based on coverage from the Office of Governor Gavin Newsom, Electrek and CalMatters.