California is bringing back electric vehicle rebates. Governor Gavin Newsom signed legislation on Monday that will offer $3,500 to first-time buyers of new EVs priced at $50,000 or less, plus $1,750 for first-time buyers of used EVs with an MSRP up to $25,000 — a move with significant implications for San Diego’s growing clean-energy economy.
The new program, called MyFirstEV, was enacted in direct response to the federal “One Big Beautiful Bill” passed last year, which eliminated the federal EV tax credit of up to $7,500 for new vehicles and $4,000 for used ones. Newsom signed Senate Bill 168 while visiting Rivian Automotive’s headquarters, earmarking $135.5 million for the rebate program.
“Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter,” Newsom said in a statement from the governor’s office. “California is putting its foot on the accelerator.”
For San Diego, the program could provide a much-needed boost to local EV adoption. After the federal tax credit expired on September 30, zero-emission vehicle sales in California plummeted 40.2% in the first quarter of this year compared to the same period in 2025. Second-quarter numbers are expected within the next two weeks.
The legislation includes a notable clause benefiting California-headquartered automakers. Vehicles from Rivian, based in Irvine, and Lucid, headquartered in Newark, qualify for the $3,500 rebate regardless of their MSRP — even though Rivian’s cheapest model costs about $58,000 and Lucid’s starts around $71,000. Tesla, which moved its production headquarters to Texas in December 2021, does not receive this exemption but can participate within the standard price limits.
The California Air Resources Board (CARB) will administer the program, with automakers matching state funding on a dollar-for-dollar basis. This means MyFirstEV could deliver up to $270 million in total incentives. CARB expects to announce participating car companies next month.
Brian Maas, president of the California New Car Dealers Association, welcomed the program’s rollout. “Anytime we’re talking about an incentive program for EVs or vehicles in general, that’s a good thing,” he told the San Diego Union-Tribune. “You’d much rather have the carrot than the stick.”
For San Diego County, which has been building out its EV charging infrastructure and where clean-energy employers are a growing economic force, the rebate program could stimulate demand at local dealerships. However, the funding is tied to the 2026-27 state budget and will be available “until funds are exhausted,” a CARB spokesperson said — meaning buyers should act quickly once the program launches later this summer.
California leads the nation in zero-emission vehicle registrations, with 2.61 million on the road as of May, including 2.02 million battery-electric vehicles. San Diego County accounts for a significant share of that total, and local dealers will be positioning to capture rebate-driven demand.
The one-time funding structure also raises sustainability questions. California’s previous rebate program, the Clean Vehicle Rebate Project, operated for over a decade before being discontinued in late 2023 due to funding shortfalls. Whether MyFirstEV becomes a permanent fixture or a temporary bridge remains to be seen.
