California is fighting back against the cancellation of federal electric vehicle purchase incentives by taking matters into state hands and adding a $3500 rebate for first-time EV buyers. Governor Gavin Newsom announced the incentive on Monday, July 13, after signing Senate Bill 168 into law.
The bill created California's new Zero Emissions Vehicle (ZEV) instant rebate program, dedicating $135.5 million from the 2026-2027 state budget to paying out rebates to first-time EV buyers. Participating automakers will match the $135.5 million fund, making the $270 million rebate program the centerpiece of California's broader $600 million ZEV investment agenda.
View Price on Amazon"Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. 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," Newsom said.
The rebate program will take $3500 off the sticker price of new electric vehicles with an MSRP of up to $50,000, with the discount in effect at the dealership. A $1750 rebate will also be available for used electric vehicles sold at prices as high as $25,000. Any first-time ZEV buyer in California will be able to collect the rebate.
California had previously provided EV buyers with rebates until 2023, and over the course of a decade, the Golden State spent $1.49 billion to subsidize 586,000 EV purchases. Electric vehicles accounted for 20 percent of new vehicle sales in California last year, with Tesla making up almost 50 percent of the sales population, according to Reuters.
Source: roadandtrack.com
