California Air Resources Board

The Governor’s Budget proposed MyFirstEV, a $135.5 million incentive program to accelerate zero‑emission vehicle (ZEV) deployment, strengthen California’s ZEV market, and support U.S. auto innovation amid federal uncertainty. The program reduces upfront ZEV costs by partnering with automakers through grant agreements to “buy down” the sticker price, with Original Equipment Manufacturers (OEMs) matching the state’s contribution. Incentives will be offered at the point of sale for first‑time buyers or lessees of new or used ZEVs, providing a combined $3,500 for new vehicles ($1,750 each from the state and participating OEMs) and $1,750 for used vehicles ($875 each). The program has a Manufacturer’s Suggested Retail Price (MSRP) cap of $50,000 for new light duty passenger vehicles and a sales price cap of $25,000 for used vehicles to keep incentives focused on affordable options. Manufacturers headquartered in California and who only manufacture ZEVs are exempt from the MSRP and sales price cap. Manufacturers were required to must commit to the program by June 30, 2026, and have an eligible vehicle ready by September 2026; new vehicles must be model year 2026 or newer and used vehicles at least two model years older. CARB will safeguard funds through a reimbursement process and enforce compliance through grant‑agreement terms and legal protections.