In September, U.S. electric‑vehicle sales plunged after the IRS clean‑vehicle tax credit was eliminated, ending the $7,500 incentive that had helped buyers meet price and income caps. Automakers responded by scaling back or canceling models, leaving most American shoppers without federal support.

California, however, moved to counter the downturn. Governor Gavin Newsom signed the My First EV Zero Emissions Vehicles program, offering an instant $3,500 rebate at purchase for first‑time EV buyers whose new vehicle costs under $50,000. A secondary rebate of $1,750 is available for used EVs priced below $25,000.

Newsom framed the measure as a direct response to federal rollbacks, accusing the Trump administration of harming air quality and ceding the clean‑car market to foreign competitors. The state hopes the rebate will keep families in California driving cleaner, saving money while reducing emissions.

The program applies only to California residents purchasing their first eligible EV, with the rebate applied at the point of sale. It is part of a broader state effort to sustain the electric‑vehicle market despite federal policy shifts.