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CHEAPR Program Logo

 

Frequently Asked Questions

If you have any questions on the Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR), please review the frequently asked questions below. The questions cover the most common questions that arise with the program. For more details, you should also review the CHEAPR program guidelines.

 

GENERAL QUESTIONS

Who can I contact if I have questions?
What is CHEAPR?
How is CHEAPR funded?
Who is administering CHEAPR?
What vehicles are eligible for the program?
Are leased vehicles eligible for the program?
What vehicles types are not eligible for CHEAPR?
What can I do if I am purchasing or leasing a vehicle that meets the requirements of the program but is not currently on the eligible vehicle list?
Can I purchase the vehicle out of state?
How many CHEAPR incentives may an individual receive?
Can businesses and government, municipal or commercial fleet operators apply for CHEAPR?
Is the CHEAPR incentive taxable income?
I want more detailed information about CHEAPR. Can I get a copy of the CHEAPR Implementation Manual?
 

INCENTIVE AMOUNTS

Why did the CHEAPR amounts change on June 7, 2021?
What are the CHEAPR requirements and incentive amounts for eligible vehicles?
 

APPLICATION PROCESS

How do I apply for CHEAPR?
How do I apply for CHEAPR if I purchase or lease an eligible Tesla?
When can I apply for CHEAPR?
How will I know if my application was submitted or approved?
How are CHEAPR funds allocated?
How will I know if I will receive the CHEAPR incentive or not?
What are the requirements for the applicant?
When will I receive my CHEAPR incentive?
What if I purchased or leased my vehicle before June 7, 2021?
Is there a deadline to apply?
 

OTHER INCENTIVES

Are there any federal tax incentives for electric vehicles?
If the federal tax credit for electric vehicles is repealed, how would that affect the CHEAPR incentive program?
Are there any incentives for installing EV charging stations?
 

GENERAL QUESTIONS

 

Who can I contact if I have questions?
Please contact the program administrator, Center for Sustainable Energy® (CSE), at 855-704-6350 or cheapr@energycenter.org for all program inquiries. Program staff is available from 11 am-8 pm ET to answer your questions, with 24 hour voicemail access. Program staff will return all voicemails left prior to 11 am ET on the same business day. All voicemails will be returned by the next business day.
What is CHEAPR?

The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) offers incentives of up to $9,500 for Connecticut residents who purchase or lease a new eligible battery electric, fuel cell electric, or plug-in hybrid electric vehicle. CHEAPR consists of three incentives, the CHEAPR Standard Rebate, CHEAPR Rebate+ New and CHEAPR Rebate+ Used.

All Connecticut residents are eligible for the standard rebate and Connecticut residents who participate in certain income qualified programs are eligible for the CHEAPR Rebate+ New and CHEAPR Rebate+ Used programs.

As part of Connecticut's ongoing efforts to move towards more sustainable forms of transportation energy while supporting our clean air and greenhouse gas reduction targets, CHEAPR will increase the number of clean vehicles on our roads.

How is CHEAPR funded?

The CHEAPR incentive program, as set forth in section 22a-202 of the Connecticut General Statutes, is funded through a fee on new motor vehicle sales and a fee on motor vehicle registration renewals. The program is also overseen by a Board tasked with the responsibility of establishing and reevaluating incentive levels. Prior to the implementation of this authority, the CHEAPR pilot program was made possible through funding commitments by American Electric Power Service Corporation, Eversource Energy and Avangrid as part of broader commitments to energy efficiency, renewable generation, alternative transportation, electric vehicles and other clean technologies.

Who is administering CHEAPR?

CHEAPR is administered statewide by the Center for Sustainable Energy® (CSE) in order to promote the production and use of zero and low emission vehicles, including battery electric, fuel cell electric and plug-in hybrid electric vehicles.

What vehicles are eligible for the program?

There are three different types of vehicles eligible for the program: battery electric vehicles (BEV), fuel cell electric vehicles (FCEV) and plug-in hybrid electric vehicles (PHEV).

To see the complete list of eligible vehicles and the associated incentive amounts, please visit:

Are leased vehicles eligible for the program?

Yes. Leased vehicles are required to have a lease term of at least 24 months to qualify for the program.

What vehicle types are not eligible for CHEAPR?

The following vehicle types are not eligible for CHEAPR incentives:

  • Aftermarket plug-in hybrid electric and battery electric conversions;
  • Electric scooters, all-terrain vehicles (ATVs), neighborhood or low speed vehicles;
  • Electric bicycles and motorcycles.
What can I do if I am purchasing or leasing a vehicle that meets the requirements of the program but is not currently on the eligible vehicle list?

Please contact the program administrator at cheapr@energycenter.org or call 855-704-6350 before purchasing or leasing the vehicle to find out if the vehicle may be eligible.

Can I purchase the vehicle out of state?

All new vehicles must be purchased at a licensed Connecticut automobile dealer and also registered in Connecticut. But, the CHEAPR program is able to process CHEAPR applications from individual consumers who purchase or lease a new eligible vehicle directly from an original equipment manufacturer (OEM) that does not have licensed new automobile dealers in Connecticut (e.g., Tesla). However, when such vehicles are authorized for sale or lease within Connecticut, applicants will be required to purchase or lease such vehicles from retail locations located within the state in order to be eligible for the CHEAPR program.

How many CHEAPR incentives may an individual receive?

Each applicant will be allowed two CHEAPR incentives within available funds. The second rebate may be redeemed after 24 months of the first rebate approval.

Can businesses and government or commercial fleet operators apply for CHEAPR?

No, at this time CHEAPR is only available to Connecticut residents.

Is the CHEAPR incentive taxable income?

The CHEAPR incentive may be considered taxable income by the U.S. Internal Revenue Service and the Connecticut Department of Revenue Services. It shall be the sole responsibility of the recipient, individually, to seek professional advice and determine the tax consequences of CHEAPR.

I want more detailed information about CHEAPR. Can I get a copy of the CHEAPR Implementation Manual?

You can download a copy of the CHEAPR Implementation Manual from the CHEAPR Resources webpage which contains the detailed guidelines for CHEAPR.

 

INCENTIVE LEVELS

 

Why did the CHEAPR amounts change on June 7, 2021?

The increased incentive levels reflect a decision by the CHEAPR Board, who oversee incentive levels as required by section 22a-202 of the Connecticut General Statutes. The new amounts recognize the benefits of a stable funding source and are intended to efficiently maximize limited funds to both stimulate Connecticut's EV market and ensure equitable availability of EV incentives to low and moderate income Connecticut residents.

What are the CHEAPR requirements and incentive amounts for different eligible vehicles?

The following chart represents rebates valid for vehicle purchase beginning June 7, 2021 until December 31, 2021 or until funds are exhausted:

 

CHEAPR Standard*

Rebate+ New*

Rebate+ Used*

PHEV

$750

$1,500

$1,125

BEV

$2,250

$2,000

$3,000

FCEV

$7,500

$2,000

$7,500

*Rebate amounts will be increased from June 7, 2021 – December 31,2021, or until funds are exhausted.

See eligible vehicles for the CHEAPR Standard and Rebate+ New

See eligible vehicles for Rebate+ Used

 

APPLICATION PROCESS

 

How do I apply for CHEAPR?
CHEAPR Standard Rebate

After you purchase or lease a new eligible vehicle, you only have to complete a short survey. The standard rebate will be taken off the purchase price of your vehicle and your dealer will complete and submit all necessary application materials for you.

Rebate+ New

After your Standard Rebate is redeemed by the dealer, you will receive an offer email with applicability information and instructions on how to apply for Rebate+ NEW if you qualify. You will also receive information regarding the required documentation as well as status updates and approval.

Rebate+ Used

Purchase a used vehicle from a licensed Connecticut automobile dealership, or from an original equipment manufacturer (OEM) that does not have any licensed dealerships in Connecticut, and submit a Rebate+ application online if you qualify for the program. You will receive communications via email regarding the required documentation as well as status updates and approval.

Program communications will be sent via email from cheapr@energycenter.org. Dealers and consumers should add this email to their safe senders list to ensure notifications from the CHEAPR program are not sent to their spam email folders.

How do I apply for CHEAPR if I purchase or lease an eligible Tesla?

Inform your Tesla delivery specialist that you wish to apply for CHEAPR and they will initiate the rebate process for you. If they are unable to help you, please contact us.

Please keep in mind that a CHEAPR application must be submitted no later than forty-five (45) calendar days after the date of purchase or lease of an eligible vehicle. The date on the vehicle registration is considered your date of purchase/lease.

The following documents are required:

  • A copy of the vehicle registration;
  • A complete Tesla purchase agreement. This includes a Tesla Motor Vehicle Purchase Agreement: Vehicle Configuration and a Tesla Motor Vehicle Purchase Agreement: Final Price Sheet. A Tesla Retail Installment Contract is acceptable along with a Tesla Motor Vehicle Purchase Agreement: Vehicle Configuration. For leases, a copy of the Tesla Motor Vehicle Lease Agreement and the Tesla Motor Vehicle Purchase Agreement: Vehicle Configuration. Please note that pro-forma documents are not acceptable;
  • A copy of your Connecticut driver's license;
  • A consumer ACH form and a voided check.
When can I apply for CHEAPR?

To qualify for the rebate, vehicles must be purchased or leased on or after the program launch date of June 7, 2021. CHEAPR applications and supporting documents must be submitted no later than forty-five (45) calendar days after the date of purchase or lease of an eligible vehicle. Applications submitted prior to the date of purchase or lease will not be accepted.

How will I know if my CHEAPR application was submitted or approved?

You will receive an email that confirms receipt of your CHEAPR application and provides a link to an on-line survey. You can also expect to receive additional emails notifying you when your documents are received and when your application is approved.

How are CHEAPR funds allocated?

Funds are limited and all funds are allocated on a first-come, first-served basis. CHEAPR will end on December 31, 2025 or when program funds are exhausted, whichever occurs first.

How will I know if I will receive the CHEAPR incentive or not?

If funds are available when the application is submitted, the applicable CHEAPR amount will be reserved. As long as all the required documents are submitted and all program requirements are met in the program timeframes, the CHEAPR incentive will be issued.

What are the requirements for the applicant?

To qualify for a CHEAPR incentive on the purchase or lease of an eligible new electric vehicle on or after the program start date, applicants must:

  • Purchase or lease the vehicle from a participating dealership after the program start date of June 7, 2021;
  • Submit an online dealer application and supporting documents with a dealership representative no later than forty five (45) calendar days after the vehicle purchase or lease date, after executing and signing a purchase or lease agreement;
  • Submit all required supporting documents, which include:
    • Proof of residency in Connecticut (e.g., current Connecticut driver's license) Proof of purchase or lease of the eligible vehicle from a licensed Connecticut franchised new automobile dealer or online dealership
    • Proof of registration for the eligible vehicle in Connecticut;
    • Certify that they will retain possession of the vehicle for at least 24 months in Connecticut;
  • Complete a short survey at the time of purchase or lease.
  • For Rebate+ applicants, submit Proof of Participation in approved state or federal income qualified program no later than fifteen (15) days after your offer email was sent.

1 The CHEAPR program is able to process CHEAPR applications from individual consumers who purchase or lease a new eligible vehicle directly from an original equipment manufacturer (OEM) that does not have licensed new automobile dealers in Connecticut (e.g., Tesla). However, when such vehicles are authorized for sale or lease within Connecticut, applicants will be required to purchase or lease such vehicles from retail locations located within the state in order to be eligible for the CHEAPR program.

When will I receive my CHEAPR incentive?

Once all application criteria are met, the CHEAPR Standard Rebate will be sent to the dealership by electronic funds transfer. Rebate+ New and Rebate+ Used incentive will be sent directly to the purchaser or lessee by check or electric funds transfer.

What if I purchased or leased my vehicle before June 7, 2021?

Only eligible vehicles purchased or leased on or after the program start date, June 7, 2021, are eligible for CHEAPR.

Is there a deadline to apply?

Applicants must apply before CHEAPR funds are exhausted. CHEAPR applications for the Standard Rebate and Rebate+ Used must be submitted no later than forty-five (45) calendar days after the date of purchase or lease of an eligible vehicle. For Rebate+ New, applicants will have fifteen (15) calendar days from the date of their offer email to submit their Rebate+ New application. Applications submitted prior to the date of purchase or lease will not be accepted.

 

OTHER INCENTIVES

 

Are there any federal tax incentives for electric vehicles?

Federal tax credits for the purchase or lease of new electric vehicles range from $2,500 to $8,000 , with factors such as battery capacity determining how much owners are eligible to receive. To meet the tax incentive's standards, a BEV or PHEV must have a battery with a minimum capacity of 4 kWh. Vehicles with a battery capacity of 5 kWh or greater are eligible for an additional $417 of tax credit added for every kilowatt-hour in excess of 4 kWh. Vehicles such as the Nissan LEAF, with a 24 kWh capacity battery, will be eligible for the maximum $7,500 credit. Federal tax credit amounts for each qualified vehicle can be found on the Department of Energy's Fuel Economy website.

The federal government is phasing out electric vehicle tax credits over time for each automobile manufacturer as sales volume increases. For further information on current federal tax incentives for alternative fuel vehicles, hybrid vehicles and electric-drive vehicles, visit www.fueleconomy.gov.

Please note there are no federal tax incentives available for the purchase of used electric vehicles.

If the federal tax credit for electric vehicles is repealed, how would that affect the CHEAPR incentive program?

If the federal electric vehicle tax credit is phased out or repealed, there will be no impact on the CHEAPR incentive program. The CHEAPR incentive program is a Connecticut state program and is independent of the federal electric vehicle tax credit.

Are there any incentives for installing EV charging stations?

Consumers who purchase qualified residential fueling equipment may be eligible for federal tax credits. For more information visit the Department of Energy's Alternative Fuel Infrastructure webpage.

If you are a business or municipality and are looking to install a publicly available electric vehicle charging station, please review the available EVConnecticut Incentives and federal Alternative Fuel Infrastructure Tax Credit webpages. In the past there have been substantial grants awarded for the installation of publicly available charging stations.

 

 

Content last updated June 4, 2021