If you’ve been thinking about buying your first electric vehicle, California’s new EV rebate program could help lower the cost of making the switch.

The state is offering up to $3,500 off eligible new electric vehicles and up to $1,750 off eligible used EVs. Unlike the former federal tax credit, the discount is applied at participating dealerships at the time of purchase, reducing the price immediately rather than requiring you to wait until tax season.

The incentives, approved as part of California’s 2026–27 state budget and administered by the California Air Resources Board (CARB), are now officially available through participating dealerships.

California EV Rebates at a Glance

  • Up to $3,500 off eligible new electric vehicles
  • Up to $1,750 off eligible used electric vehicles (available through select participating automakers)
  • Available to eligible first-time EV buyers
  • Applied at the time of purchase at participating dealerships
  • Available while program funding lasts

Who Is Eligible?

To qualify for the California EV rebate:

  • You must be purchasing your first zero-emission vehicle.
  • New EVs must have a manufacturer’s suggested retail price (MSRP) of $50,000 or less.
  • Used EVs must have a purchase price of $25,000 or less.

An exception applies to vehicles from California-based manufacturers, including Rivian and Lucid, which are eligible regardless of price.

Another important detail is that eligibility is determined by a model’s base trim MSRP. As long as the base trim of a vehicle is priced below the $50,000 threshold, higher trim levels of that same model may also qualify for the rebate.

Why Is California Offering New EV Incentives?

The new rebates are intended to encourage more Californians to make the switch to electric vehicles following the expiration of the federal EV tax credit.

Transportation remains California’s largest source of greenhouse gas emissions, and expanding EV adoption is one of the state’s key strategies for improving air quality, reducing climate pollution, and lowering transportation costs over time.

CARB estimates the MyFirstEV program will help fund the purchase of more than 73,000 zero-emission vehicles.

What Buyers Should Know

Because funding is limited, shoppers may want to take advantage of the program sooner rather than later.

While CARB expects the program to support more than 73,000 vehicle purchases, California typically registers between 200,000 and 300,000 battery-electric vehicles each year, meaning available funding could be exhausted sometime during mid-2027 if demand remains strong.

Funding is also divided equally among the program’s 13 participating automakers, giving each manufacturer enough funding for roughly 5,000 to 6,000 vehicles. Popular brands with higher sales volumes could deplete their allocations more quickly than others.

Buyers interested in a used EV should also note that not every participating automaker offers used-vehicle incentives, so availability may vary depending on the manufacturer and dealership.

What This Means for Yolo County Residents

For many Yolo County households, the new rebate could make an electric vehicle—especially a used one—more affordable. Combined with lower fuel and maintenance costs, the incentive may help reduce the overall cost of vehicle ownership.

If you’re considering your first EV, it’s worth checking whether your preferred dealership participates in the MyFirstEV program, confirming that your chosen model qualifies, and shopping before manufacturer funding allocations are exhausted.