California Adds $3500 Rebate for Certain EV BuyersPhotography By DW BurnettCalifornia 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, with the program going into effect later this summer.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.Anadolu - Getty Images"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. "As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe."AdvertisementAdvertisementThe 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. Some plug-in hybrid owners looking to trade in for an EV may be precluded from collecting the rebate, however, as certain PHEV models are classified as ZEV under California law.Mario Tama - Getty ImagesCalifornia 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. California is investing over $600 million in a clean transportation economy with the signing of S.B. 168, which includes $150 million for the Community Air Protection Program and $19.8 million for lower-income buyers with its Clean Cars 4 All program alongside incentivizing EV sales.Setting the rebate ceiling at $50,000 for new EVs appears to be a strategic move by California legislators, as Governor Newsom said the rebate is aimed at providing access for families who have been waiting to transition to electric propulsion. The population of new EVs under $50,000 is strong these days, with models like the Chevrolet Bolt, Tesla Model 3, and Hyundai Ioniq 5 all meeting the rebate criteria, but anyone hoping to get some Golden State money to buy a Porsche Taycan is probably out of luck.You Might Also LikeIf You Can Only Own One Car, Make It One of TheseThese Are the Most Popular Cars by State