California brings back electric vehicle rebates, following end to Biden-era federal ones last year

The money for the rebates is $135 million that Democratic Gov. Gavin Newsom included in the state's new $350-billion budget.

Published: July 5, 2026 8:27am

California is offering rebates for electric vehicle buyers, in an effort to get more motorists to choose them over gas-powered one.

The money for the rebates is $135 million that Democratic Gov. Gavin Newsom included in the state's new $350-billion budget.

Eligible buyers will receive $3,500 off new EVs and $1,750 off used ones, according to The Los Angles Times

The rebates follow the expiration in September 2025 of the $7,500 federal tax incentive for new electric vehicles. 

The state budget went into effect Wednesday, but the incentives won't be available until the coming weeks, as state officials finalize agreements with dealerships.

Automakers participating in the incentive program will match the state funds, The Times also reports. 

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