$135 million state investment, matched dollar-for-dollar by automakers, delivers more than $270 million in point-of-sale savings for California's first-time EV buyers as America marks its 250th birthday
SACRAMENTO, Calif., June 26, 2026 /PRNewswire/ -- The American EV Jobs Alliance today praised Governor Gavin Newsom and the California Legislature for reaching an agreement on a first-time electric vehicle buyer incentive program as part of the state budget. The program requires the California Air Resources Board (CARB) to establish a new point-of-sale incentive for first-time EV buyers and to enter into grant agreements with automakers, who must match the state incentive dollar-for-dollar. Paired with $135 million in state funding, the required match effectively doubles the total investment to deliver point-of-sale savings for Californians buying their first EV.
The Alliance helped design the program and spent the past year building the support to fund it, making the case to the Governor's office, the Legislature, CARB, and the California Energy Commission for a practical, consumer-focused incentive built around first-time buyers, point-of-sale savings, and a dollar-for-dollar automaker match. In the final stretch of budget negotiations, the Alliance launched the statewide CA EV Jobs campaign urging lawmakers to fund the program. The campaign featured CAEVJobs.org, where Californians could contact their legislators directly; a constituent texting program that delivered more than 100,000 messages to voters in legislative leadership and budget chair districts; a Capitol lobby day; op-eds making the economic case for California's EV leadership; and a digital advertising campaign that reached Sacramento decision-makers through sponsorship of POLITICO's California Climate newsletter, PlugShare, LinkedIn, and other platforms. The campaign creative asked Californians a simple question: tired of paying minibar prices for gas?
Statement from Mike Murphy, CEO of the American EV Jobs Alliance:
"Governor Newsom and the California Legislature have stepped up to support California as America's clear EV leader. $135 million for first-time EV buyers, matched dollar-for-dollar by automakers, adds up to more than $270 million in welcome help for new EV buyers. This legislation will fund a $3,500 cash-on-the-hood credit for tens of thousands of first-time EV buyers in the Golden State. Now CARB can sign the grant agreements with automakers and get the dollars moving, so drivers start saving soon!"
A practical, pro-consumer design. The program delivers incentives instantly at the point of sale for the purchase or lease of new, and the purchase of used, light-duty zero-emission vehicles registered to California residents. Under the bill, CARB sets the new-vehicle incentive amount, with a lower amount for used vehicles, and participating manufacturers match it dollar-for-dollar. Eligibility is focused on first-time EV buyers, with no income cap, opening the door to working families across the state who have never owned an EV. Market research shows that more than 80 percent of first-time drivers who buy or lease an electric vehicle become permanent EV drivers, making first-time buyer incentives one of the most efficient ways to grow long-term demand and strengthen American EV manufacturing.
A model born in California. California is America's clear leader in electric vehicles, and Ford, Lucid, Honda, Rivian, GM, Hyundai, Tesla, Kia, Toyota, and many other manufacturers and suppliers design, engineer, and build here. The dollar-for-dollar automaker match is among the first of its kind in the nation, stretching every public dollar and inviting industry to invest alongside the state. With the federal government stepping back from supporting U.S. EV manufacturing, California is stepping up to help American and allied automakers compete at a moment when more than a million good-paying U.S. jobs are on the line.
Next steps. With the agreement reached, CARB can now move to sign grant agreements with participating automakers and get incentive dollars flowing to dealerships, so first-time buyers see savings as soon as possible.
The American EV Jobs Alliance thanked the Governor, legislative leadership, and budget negotiators for delivering the program in the budget deal, and said it looks forward to continuing to work with the Administration, the Legislature, CARB, and the California Energy Commission to launch the program quickly and keep California's EV market strong.
About the American EV Jobs Alliance
The American EV Jobs Alliance is a nonpartisan advocacy organization focused on strengthening American EV manufacturing by domestic companies and U.S. allies. EVs for All America is a separate, affiliated nonprofit that conducts independent research and education to identify and address barriers slowing EV adoption.
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