California has launched its MyFirstEV incentive programme, offering residents buying or leasing their first zero-emission vehicle (ZEV) an instant rebate of up to $3,500 at the point of sale.
The programme provides a $3,500 incentive for eligible new vehicles and $1,750 for used vehicles. The rebate is deducted directly from the purchase price at participating manufacturers, eliminating the need for consumers to claim the incentive after completing their purchase.
Hyundai, Lucid and Tesla are the first manufacturers participating in the programme, with additional automakers expected to join in the coming months.
New and Used EVs Qualify for Point-of-Sale Rebates
New ZEVs qualify for the incentive if they have a manufacturer’s suggested retail price of no more than $50,000. Used vehicles must have a purchase price of no more than $25,000 and must be sold through a participating manufacturer’s certified or pre-owned vehicle programme.
The programme is available to California residents purchasing or leasing their first zero-emission vehicle, making it one of the state’s latest efforts to reduce the upfront cost of switching from internal-combustion vehicles to cleaner transportation.
California has committed $135.5 million to MyFirstEV. Participating vehicle manufacturers will match the state funding dollar for dollar, bringing total programme funding to $271 million.
“MyFirstEV makes EV ownership possible for more Californians,” said Yana Garcia, California’s Secretary for Environmental Protection.
Garcia said the programme is intended to support cleaner air, public health and more affordable transportation options for working residents.
More Automakers Set to Join
Hyundai, Lucid and Tesla are offering the incentives through participating dealerships and sales centres across California from the programme’s launch.
Ford, Rivian, Chevrolet and Kia are expected to join in August. Toyota and Lexus, Honda and Subaru are scheduled to participate from September, while Mitsubishi is expected to join in November.
Nissan and Volvo have not yet announced launch dates for their participation.
“California is once again leading with bold, decisive action and expanding access to the benefits of zero-emission vehicles with the launch of the MyFirstEV program,” said California Air Resources Board Chair Lauren Sanchez.
Sanchez said the programme could help families reduce fuel and maintenance costs while improving air quality.
Transportation Remains California’s Largest Emissions Source
California sees wider adoption of zero-emission vehicles as an important part of its strategy to reduce transportation emissions and improve air quality.
According to the state government, transportation accounts for about 60% of California’s smog-forming pollution and 40% of its greenhouse gas emissions. Nearly 18 million residents live in areas with unhealthy air, while air pollution contributes to about 1,500 deaths annually in Southern California alone.
The state expects replacing gasoline- and diesel-powered vehicles with ZEVs to reduce both emissions and vehicle operating costs for consumers.
Battery Storage Strengthens Clean-Energy Transition
California is also expanding the electricity infrastructure needed to support growing electric vehicle adoption.
The state’s battery storage capacity has reached 21,112 MW, compared with less than 700 MW in 2019. Approximately 18,000 MW is grid-scale storage, while another roughly 3,000 MW is installed at homes, schools, farms and businesses.
Solar power also overtook natural gas as California’s largest electricity source during the first half of 2026.
According to the California Energy Commission, solar power use increased 22% between the first half of 2024 and the first half of 2026, while natural gas use declined 51%.
Grid battery capacity increased 80% over the same period, helping California integrate more renewable electricity and manage fluctuations in solar generation.
The combination of renewable generation, battery storage and consumer incentives supports California’s broader goal of sourcing all electricity from clean energy sources by 2045.
