California Gov. Gavin Newsom signed SB 168, the MyFirstEV zero emissions vehicles instant rebate program, into law Monday. The program will provide an instant $3,500 rebate for a Californian buying their first EV, provided the vehicle costs less than $50,000. There’s also a $1,750 rebate for used EVs that cost less than $25,000.
Funds for this program come from the state’s budget. Participating automakers are also contributing to the program by matching the $135.5 million in state funding.
Caps Off
The rebate is open to any California buying their first zero emission vehicle, and there isn’t an income cap for this program.
And, according to Electrek, there is a loophole for the $50,000 price cap on the vehicles themselves: The EV price cap will be reportedly waived if the automaker is headquartered in California. In other words, Lucid and Rivian.
Both Lucid and Rivian’s cheapest EVs start above the $50,000 price cap, but since they are based in the state, the rebate would still apply. Tesla models, however, would be capped at the $50,000 selling price since the company is now based in Texas. Only Tesla’s under $50,000 Model 3 and Model Y would therefore qualify.
State-by-State Rebates
The California rebate program is set to take effect later this summer, with more details to follow. Other steps taken by the state include ramping up EV charging-station installations.
After the federal EV tax credit ended last year, EV sales in the U.S. have softened. Many states now offer their own incentives instead. Our state-by-state rebate guide can help determine if your state has its own program.
Cox Automotive, the parent company of Kelley Blue Book and Autotrader, is a minority investor in Rivian.
