California Governor Gavin Newsom signed the SB 168 law on August 9, 2026, establishing the MyFirstEV rebate program for first-time electric vehicle buyers who are California residents [1, 2, 3]. The program offers an instant $3,500 rebate on new fully zero-emission electric vehicles priced below $50,000, and a $1,750 rebate for used electric vehicles costing less than $25,000 [1, 2, 3]. Tesla Model 3 and Model Y base versions qualify, but higher-priced models like the Cybertruck are excluded due to cost limits [2, 3].
The rebates apply as an instant discount at dealerships, reducing the purchase price directly at the point of sale [3]. Hybrids are not eligible, as only fully zero-emission EVs qualify [3]. Governor Newsom said, "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" [1]. He criticized federal policy changes, stating, "Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter" [1].
The $270 million fund for the MyFirstEV program is split equally between California’s 2026-2027 state budget and contributions from participating automakers [2, 3]. This forms part of California’s larger $600 million investment into clean transportation, which also funds air protection initiatives, clean truck and bus incentives, vehicle replacements, and rural EV charging stations [3].
The program responds to the collapse of U.S. EV adoption following the abolition of the federal tax credit of up to $7,500 at the end of September 2025 [1]. California remains a key market for electric vehicles.
The MyFirstEV rebate program is expected to take effect in late summer 2026 [3], allowing eligible Californians to immediately reduce the cost of switching to fully electric vehicles.
