Clear Rebate Targets and Amounts, with Exemptions for California-Based Automakers
California officially launched the MyFirstEV rebate program in 2026, offering first-time electric vehicle buyers up to $3,500 in direct discounts for new EVs and $1,750 for used EVs. According to rules published by the California Air Resources Board (CARB), new vehicles must have a manufacturer’s suggested retail price (MSRP) of $50,000 or less, while used EVs are capped at $25,000. However, automakers headquartered in California, such as Lucid and Rivian, are exempt from these price limits. A CARB spokesperson emphasized that eligibility is determined by the base model’s MSRP, not the final sale price, meaning higher-trim models—such as the Tesla Model Y Performance—qualify as long as the base MSRP meets the requirement.
For example, Tesla’s Model Y base model is priced below $50,000, making all Model Y variants, including higher trims, eligible for the rebate. Ford, Chevrolet, Hyundai, Kia, and other automakers have also joined the program, though each manufacturer retains the right to decide which models and trim levels qualify. Consumers cannot automatically apply for the rebate for all vehicles meeting the price cap.
Strict Requirements for Used EVs, Including Dealership and Vehicle Age Rules
Rebates for used electric vehicles come with tighter restrictions. Only certified pre-owned EVs purchased through franchised dealerships qualify; vehicles from independent dealerships or specialty EV stores are ineligible. Additionally, used EVs must be at least two model years older than the year of purchase. For instance, a used EV purchased in 2026 must be a 2024 model or older. This rule aims to ensure rebate funds promote the reuse of older vehicles rather than recently produced models.
CARB further clarified that hydrogen fuel-cell vehicles qualify for the rebate, while plug-in hybrid electric vehicles (PHEVs) do not. Buyers must sign a statement attesting that they have never previously owned an EV to receive the rebate, ensuring the program targets new EV adopters rather than existing owners.
Varying Participation Timelines Among Automakers, with Some Funds Already Depleted
A list of participating automakers released by CARB shows that Tesla, Ford, Chevrolet, Hyundai, Kia, and Lucid began offering rebates in August 2026. Honda, Lexus, Subaru, and Toyota will join in September, while Mitsubishi plans to participate in November. Nissan, Rivian, and Volvo have yet to announce their timelines. The program is funded jointly by the state of California and participating automakers, with a total budget of $135.5 million, expected to support over 73,000 clean vehicle sales. However, funds are limited, and some automakers may exhaust their allocations more quickly than others.
Tesla’s website indicates that only 50% of its rebate funds remain available as of early August 2026, and the discount applies only to inventory vehicles, not custom orders. This means consumers interested in purchasing a Tesla must act quickly to secure the rebate. CARB noted that due to varying fund allocations among automakers, some models may become ineligible for rebates within a short period. Prospective buyers are advised to confirm eligibility and inventory status with dealerships in advance.
The California government stated that the MyFirstEV program aims to accelerate EV adoption and reduce transportation emissions’ impact on air quality. As more automakers join, more consumers are expected to benefit, though the program’s success in meeting its goals remains to be seen due to limited funding. Interested buyers should closely monitor automakers’ participation timelines and fund availability to avoid missing out on the rebate opportunity.
