California: Governor Newsom secures 13 automakers to offer instant rebates for first-time ZEV buyers

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Jul 16, 2026

Governor Newsom secures 13 automakers to offer instant rebates for first-time ZEV buyers

As Trump abandons American car buyers, California's steady climate leadership is giving major automakers the confidence to invest, cutting costs at the dealership for California families

What you need to know: Later this summer, 13 automakers will start participating in California's program to offer families buying their first zero-emission vehicle $3,500 off a new vehicle or $1,750 off a used model. By matching the state's $135 million investment, these automakers are helping deliver a combined $270 million in total savings to help more Californians go electric.

SACRAMENTO – Governor Gavin Newsom today announced that 13 major automakers are teaming up with the Golden State to offer instant rebates to Californians buying or leasing their first zero-emission vehicle. California is proving that a state can lead on affordability and clean air even as the Trump administration walks away from both.

While Trump hands the keys to the clean car industry over to China, we are signaling to the world that California is open for business. We're all-in on cutting costs for working families and keeping American manufacturing jobs in the fight. The future should be built in America.

Governor Gavin Newsom

Established by the Legislature and signed by the Governor in SB 168 just this week, the MyFirstEV program is funded by a $135 million state investment split evenly among participating automakers who will match the state's contribution dollar-for-dollar. Each automaker choosing to participate in the program is signaling their confidence in California's market and their commitment to doing business in the state.

Participating automakers include: Ford, General Motors, Honda, Hyundai, Kia, Lucid, Mitsubishi, Nissan, Rivian, Subaru, Tesla, Toyota and Volvo.

The instant rebate program delivers on the Governor's promise to create a state ZEV incentive program after Trump and congressional Republicans repealed the federal program, ceding ground to China in the global race for clean-car manufacturing. The investment strengthens California's zero-emission vehicle market and supports American auto workers.

How the instant rebate for first-time ZEV buyers will work

For California families who have been waiting for the right moment to go electric, that moment arrives later this summer. The MyFirstEV program will make it easy by giving shoppers instant savings right at the dealership and built into the sales process.

Here's what buyers need to know:

• $3,500 off new electric vehicles with an MSRP up to $50,000
• $1,750 off used electric vehicles sold for up to $25,000 through manufacturers' pre-owned vehicle programs
• The rebate is open to any Californian buying or leasing their first ZEV

The California Air Resources Board (CARB) is overseeing the program. Details on when the funding will be available and how to access it are expected next month.

Californians can explore options, learn about charging, and find a dealer at www.electricforall.org.

The bigger picture: $600 million for California's clean transportation economy

The MyFirstEV instant rebate is part of a $600 million investment in California's affordable, clean-vehicle future. Funded through Cap-and-Invest revenue and smog-abatement fees, today's full package includes:

• $150 million for the Community Air Protection Program, which can support clean transportation projects.
• $19.8 million for Californians with lower incomes through  Clean Cars 4 All
• $35 million for clean off-road equipment through the Air Quality Improvement Program
• $135.5 million for  California's Clean Truck and Bus Voucher Incentive Project (HVIP)  
• $130 million to replace polluting heavy-duty engines through the Carl Moyer Program  

What they're saying

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Since the bill was announced, automakers, clean energy industry leaders, auto sector organizations, and environmental advocates have expressed strong support. Here is a snapshot of what leaders are saying across the state:

Mike Murphy, CEO of the American EV Jobs Alliance: "Governor Newsom and the California Legislature have stepped up to support California as America's clear EV leader. $135 million for first-time EV buyers, matched dollar-for-dollar by automakers, adds up to more than $270 million in welcome help for new EV buyers. This legislation will fund a $3,500 cash-on-the-hood credit for tens of thousands of first-time EV buyers in the Golden State."

Matt Petersen, President and CEO, Los Angeles Cleantech Incubator: "The Los Angeles Cleantech Incubator (LACI) is proud to have joined the call for EV incentives for cars and trucks through our clean vehicles campaign, and we are grateful to the Governor and legislature for reaching this deal. California now continues to lead on climate innovation and clean air, helping save money and create jobs—the deal also helps invest in companies based in our great state. This is exactly the type of bold climate leadership we hope to build upon and showcase by the time the world arrives for the 2028 Games."

Laura Deehan, State Director, Environment California: "Californians will breathe easier thanks to these smart investments in clean cars, buses and trucks. I applaud the Governor and legislative leaders for crafting the clean car incentive to maximize every dollar by requiring a match from the car companies. This essentially doubles the clean air impact."

Moms Clean Air Force: "On behalf of the 139,000 Moms Clean Air Force members in California, we celebrate this historic investment in fighting the leading source of smog and climate pollution in our state. This investment in clean electric vehicles will reduce air pollution in communities, which will mean fewer asthma attacks and lung infections, lower health care bills, and fewer harmful climate impacts. Moms Clean Air Force thanks the legislature and the governor for their leadership in keeping our kids safe from air pollution."

Adrian Martinez, Director of Earthjustice's Right To Zero Campaign: "California communities want buses and trucks that don't pollute neighborhoods. These investments in nonpolluting trucks and buses show our elected leaders heard us. They also show California is not cowering in the corner as the Trump Administration seeks to destroy our clean transportation economy. Our leaders are standing up for cleaner air and a better future for Californians."

Daniel Barad, Western States Director, Union of Concerned Scientists: "At a moment of escalating federal attacks and rollbacks, California's leadership on zero-emission vehicle funding is both essential and timely. This funding for clean cars and trucks is a crucial bridge to a zero-emission transportation future and will help prevent California from falling behind the rest of the world. Further, the funding for Clean Cars for All is crucial to ensuring no one is left behind in the state's transition to cleaner transportation."

Benjamin Lu, Advocacy Manager, American Lung Association in California: "California's clean air progress demands ongoing attention, including strong investments in zero-emission solutions. By investing in zero-emission trucks and other strategies to clean the air in our most impacted communities, California is showing we value public health and clean air."

Susan Nedell, Sr. Western Advocate, E2: "These investments will drive growth in the state's clean energy economy, adding to California's 552,300 clean jobs, bolstering ZEV manufacturing in our state, and putting more Californians to work. These investments reinforce California's global climate leadership ensuring our state remains a nexus of investment and job growth"

Hannon Rasool, Managing Director of Transportation at Natural Resources Defense Council: "This budget maintains California's leadership in the transition to zero-emissions vehicles, and signals there's no going back to the era of dirty air and only having the option of relying on expensive and volatile gas. These purchase incentive programs will put EV ownership within reach of more Californians, so they can enjoy the fuel and maintenance cost savings of EVs and keep more of their paychecks in their pockets. These programs will further strengthen California's leadership in the global clean transportation economy, supporting jobs, innovation, and manufacturing."

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Shannon Olivieri Hovis, Chief Strategy Officer, California Environmental Voters: "At a time when the federal government is attacking California's authority to set stronger clean vehicle standards, this investment is exactly the kind of backstop we need to hold the line and protect our progress. By making it more affordable to drive electric, we're cutting pollution, especially in communities that have spent far too long breathing dirty air from our busiest transportation corridors. California is proving once again that protecting clean air and lowering costs for families go hand in hand."

Chris Chavez, Deputy Policy Director, Coalition for Clean Air: "We applaud both the Governor and the Legislature for their commitment to invest in clean transportation. Transportation is the largest source of pollution that harms both the climate and health in California. Funding clean transportation is an investment in public health, especially since California is home to the dirtiest air in the nation."

Trisha DelloIacono, Head of Policy, CALSTART: "CALSTART champions the Governor and Legislature's budget agreement, a decisive action that strengthens California's global zero-emission leadership. This budget provides critical market certainty by providing funding for light-duty consumer incentives and the Clean Truck and Bus Voucher Incentive Project (HVIP). We commend California's leaders for matching climate ambition with capital and look forward to continuing to work together to advance additional transportation investments needed to support deployment, strengthen supply chains, and provide transportation alternatives."

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