Newsom announces new zero emission vehicle rebate, calls out Trump

California residents can get up to $3,500 off an electric vehicle if they're first-time buyers, as the state invests in its zero-emission vehicle (ZEV) infrastructure.

Governor Gavin Newsom signed in the new law, SB 168, today (July 13), reviving a previous state rebate program ended in 2023. It's also the first announced by California under the second Trump administration, which has axed federal clean vehicle tax credits and slashed at Biden-era funding for electric vehicle infrastructure across the country.

"Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter," Newsom wrote in a press release. "As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe."

Domestic electric vehicle sales are only just recovering after a drop in 2025 following the end of the federal tax credit program. The rise is partially owed to surging gas prices after President Trump launched a war on Iran, prompting many Americans to pivot back to electric and hybrid vehicles. Tesla accounted for almost 50 percent of total vehicle sales in California last year, Reuters reported, but the U.S. still lags behind other countries in ZEV purchases.

Funding for the state-wide ZEV instant rebate — estimated at around $270 million — comes from a $600 million allocation in California's latest fiscal budget. Buyers can get a $3,500 credit for new vehicles up to $50,000, or up to $1,750 for used vehicles with a value up to $25,000. Several states across the country offer electric vehicle rebate programs or other tax incentives, including Colorado, New York, and Vermont.