The government of California confirmed a program of rebates of up to $3,500 for those who buy an electric vehicle for the first time, as part of a state initiative to boost the adoption of zero-emission cars.
The measure is part of the 2026-2027 state budget, signed by Governor Gavin Newsom at the end of June and in force since July 1. The SB-168 law allocated $135 million to these rebates, funded with state money and contributions from participating automakers.
Who can access the $3,500 rebates?
The benefit offers an instant discount at the point of sale: $3,500 for the purchase of a new electric vehicle and $1,750 for a used one. Unlike other programs, the amount is applied directly to the final price, with no need for later paperwork.
To qualify, buyers must purchase an electric vehicle for the first time and meet the following requirements:
Requirements to access the rebate
- Be a California resident.
- Have not purchased an electric vehicle before.
- New cars: sale price below $50,000.
- Used cars: sale price below $25,000.
California-based brands, such as Rivian and Lucid Motors, are exempt from the price cap established by the regulations.
How does this measure impact buyers?
The rebate represents between 4% and 7% of the vehicle’s value, depending on the model chosen. The measure comes almost a year after the federal government ended its own incentive for electric cars, which offered up to $7,500 in tax credits.
The program is still not operational: the California Air Resources Board (CARB) is finalizing agreements with automakers and participating dealers. It is expected that the rebates will be available in the coming weeks, although there is still no official launch date.