California is launching a new incentive program for first-time electric vehicle buyers that gives a leg up to companies like Rivian and Lucid.

Gov. Gavin Newsom on Monday signed a bill, SB 168, into law that will give first-time electric vehicle customers an instant incentive of $3,500 for a new vehicle and $1,750 for a used vehicle at the point of sale.

The program, called MyFirstEV, is expected to launch this summer, although the state has not announced an exact start date. A spokesperson for the California Air Resources Board (CARB), which will administer the state program, told Business Insider that the agency expects to announce participating automakers next month.

The bill has a price cap for electric vehicles to qualify. New vehicles cannot have a manufacturer’s suggested retail price of more than $50,000, while used vehicles cannot sell for more than $25,000.

However, the law exempts California-based electric vehicle manufacturers that make only zero-emission vehicles, allowing companies like Rivian and Lucid to participate in the incentive program regardless of vehicle prices. Rivian is headquartered in Irvine, while Lucid is headquartered in Newark.

Both companies sell vehicles at prices well above the bill’s limits. Rivian’s R1T pickup truck starts at less than $80,000. Lucid primarily sells luxury electric vehicles, and the Air sedan costs around $71,000.

A Lucid spokesperson told Business Insider that it intends to participate in the state program and that Lucid Air and Gravity vehicles will be eligible for California customers.

“We see this as a significant opportunity to help make advanced electric vehicles more accessible to California buyers,” the spokesperson said, adding that the company “applauds the inclusion of the exemption.”

Although Tesla makes the Model 3 and Model Y at its Fremont factory and maintains an engineering headquarters in Palo Alto, it would be excluded from the exemption. The company moved its corporate headquarters from California to Austin in 2021.

The CARB spokesperson confirmed that Lucid and Rivian could qualify for the exemption, while Tesla would be subject to price caps.

Tesla would not be completely excluded from the incentive program. Lower-priced versions of the Model 3 and Model Y that fall below the $50,000 limit could qualify if the company decides to participate.

The California governor’s office billed the program as a replacement for the federal electric vehicle tax credit program, which the Trump administration repealed. Under the now-defunct federal program, EV buyers could get up to $7,500 in incentives.

“Donald Trump is doing everything in his power to pollute our air and hand the clean auto industry to China on a silver platter. California is putting its foot on the accelerator,” Newsom said in a statement.

Spokespeople for Rivian and Tesla did not respond to a request for comment.