- California's new EV rebate program is underway, and now we know more about it.
- Car companies will decide which trims and models qualify.
- Some Teslas that cost over $50,000 will qualify, a government spokesperson said.
The $7,500 EV tax credit may have met a premature end last year, but first-time EV buyers in California can now get thousands off of an EV purchase thanks to an incentive program passed earlier this year. Now that the MyFirstEV program is kicking off, we know more about how exactly it works and which new and used EVs qualify.
For a couple of months now, we've known the basic contours of the program. It provides an up-front, $3,500 discount for purchases of new EVs, and $1,750 for used ones. New EVs must carry an MSRP of $50,000 or less, while secondhand cars can't go for more than $25,000. These caps don't apply to California-headquartered EV companies, so Lucid and Rivian are exempt. (All of their existing products start above the price cap, so the exemption ensures they will still benefit.) And buyers will have to fill out a form attesting to the fact that they haven't owned an EV before.
The state of California and participating manufacturers are splitting the cost of each rebate. Last month, California laid out which car companies are participating in the program. Now, according to a bulletin published by the California Air Resources Board (CARB), we know when they're coming on board. Here's the list and timing:
- Chevrolet: August 2026
- Ford: August 2026
- Honda: September 2026
- Hyundai: August 2026
- Kia: August 2026
- Lexus: September 2026
- Lucid: August 2026
- Mitsubishi: November 2026
- Nissan: Coming soon
- Rivian: Coming soon
- Subaru: September 2026
- Tesla: August 2026
- Toyota: September 2026
- Volvo: Coming soon
The state has also shared new details about the cars from those manufacturers that qualify. Hydrogen fuel-cell cars qualify, while plug-in hybrids don't. Carmakers will decide which models and trim levels are eligible, according to CARB. So you won't necessarily be able to waltz into a dealership and get a discount on any EV, even if it falls under the price cap. Tesla, for example, is advertising that the MyFirstEV discount applies to vehicles in its inventory, rather than custom orders.
That inventory has dwindled in the past couple of days, and as of this writing only includes a handful of Model Y Performance crossovers. But wait, you may be thinking, doesn't the Model Y Performance cost well over the $50,000 cap? I asked CARB about this, and a spokesperson said that the MSRP for a base model is what counts. Since the Model Y starts at well under $50,000, you can choose a higher trim level with a bunch of options and it will still qualify.
On the used side, there are some new wrinkles to keep in mind too. CARB says used vehicles must be at least two model years older than the year of purchase—meaning that today only 2024 and older vehicles qualify. Perhaps more importantly, the incentive only applies to certified pre-owned EVs sold through franchised dealerships. So used EVs at independent dealerships or EV specialty stores don't count.
California says the $135.5 million program (an amount matched by the partnering manufacturers) could incentivize the sale of over 73,000 clean vehicles. But there's a reason to move quickly. This is a limited pool of funding, with all the participating manufacturers splitting the pie equally, the CARB spokesperson told InsideEVs. In a way, that's a smart design, since it means one dominant EV seller can't just eat up all the funding too quickly. But it also means some car companies may run out of funds faster than others. Tesla's website, for example, already states that 50% of its funds remain.
Contact the author: Tim.Levin@InsideEVs.com
Updated Friday, August 6 with additional information about the split of funds between participating manufacturers in the last paragraph.
