Gavin Newsom doubles down on electric vehicles as new EV rebate program launches

With federal incentives gone, California is opening its own wallet to keep electric car buyers interested. 

Gov. Gavin Newsom signed legislation Monday creating a $270 million rebate program that is expected to launch later this summer. 

The initiative will provide California residents with a $3,500 rebate on qualifying new electric vehicles with a manufacturer’s suggested retail price of $50,000 or less.

The legislation also includes a $1,750 rebate for qualifying used electric vehicles priced at $25,000 or below.

According to Reuters, state officials said the program is financed through California’s budget along with contributions from participating automakers, though the California Air Resources Board has not yet released a list of manufacturers taking part. That information is expected to be announced next month.

The new rebates arrived after federal incentives for electric vehicles were eliminated. The federal program previously offered tax credits of up to $7,500 for new EV purchases and up to $4,000 for used models before those incentives were repealed under legislation signed by President Donald Trump.

“California is filling the void left by Trump and the GOP repealing the federal electric vehicle tax credit,” Newsom wrote on X. “We won’t forfeit the future to China.” 

According to the California Energy Commission, there are over 1.25 million electric vehicles registered in the Golden State, with EVs representing about one in five new vehicle sales in the state last year.

Despite strong adoption here, electric vehicle sales have slowed. A recent report from the California New Cars Dealers Association showed zero-emission vehicles took a nosedive in the first quarter of this year compared to 2025.

The new rebate program replaces California’s previous EV incentive, which ended in 2023 after distributing roughly $1.49 billion in rebates that helped subsidize about 586,000 electric vehicle purchases over a 10-year period.

The state has continued to push policies supporting electric vehicle adoption, even as legal battles continue over California’s plan to phase out the sale of new gas-powered vehicles by 2035.

That policy remains the subject of ongoing litigation after federal action sought to overturn the state’s emissions rules.