BACKGROUND

 

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 8 am-5 pm ET to answer your questions, with 24 hour voicemail access.

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 the "Clean Air Act" fee on new motor vehicle sales and motor vehicle registration renewals. As of July 1, 2022, 100% of the fees collected are directed to funding the program.

Until 2019, 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?

The program is implemented by the Department of Energy and Environmental Protection (DEEP) with the assistance of a program vendor and the input of a diverse seventeen (17) member advisory board. 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.

GETTING STARTED

 

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:

• CHEAPR – New Eligible Vehicle List
• CHEAPR – Used Eligible Vehicle List

Note: Pursuant to Public Act 22-25, DEEP is working to expand CHEAPR to include electric bicycles and will update this list when such changes are ready to be implemented.

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

The following chart represents rebates valid for vehicle purchase beginning on June 7, 2021:

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

• CHEAPR – New Eligible Vehicle List
• CHEAPR – Used Eligible Vehicle List

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 motorcycles
• Electric bicycles

Note: Pursuant to Public Act 22-25, DEEP is working to expand CHEAPR to include electric bicycles and will update this list when such changes are ready to be implemented.

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?

Vehicles that are not currently on the eligible vehicles list are not eligible for CHEAPR. It is the responsibility of the Original Equipment Manufacturer (OEM) to contact CHEAPR for eligibility consideration. Please encourage the OEM to reach out to the CHEAPR program at cheapr@energycenter.org.

How can an OEM get a new eligible vehicle or new Model Year of already existing vehicle adding to the eligible vehicle list?

For both newly eligible vehicles and new model years, please email cheapr@energcenter.org with the Vehicle Identification Number (VIN) decipherment and a marketing photo of the vehicle.

My vehicle was previously not listed but is now listed, can I get a retroactive rebate?

No. As a point-of-sale program, vehicles must be on the eligible vehicle list and the rebate must be applied at the time of purchase or lease to be eligible for a rebate.

I was not aware the vehicle I purchased or leased was eligible and was not informed by the dealer. Can I still receive a rebate?

Please contact CHEAPR program staff at cheapr@energycenter.org or 855-704-6350 for assistance

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?

Not at this time. CHEAPR is only available to Connecticut residents. Please see the important following note.

Note: Pursuant to Public Act 22-25, DEEP is working to expand applicability to Connecticut businesses, municipalities, non-profit organizations, and tribal entities and will update the list of eligible entities when such changes are implemented.

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.

APPLICATION PROCESS

 

How do I apply for CHEAPR?

CHEAPR Standard Rebate

The standard rebate will be applied for through the dealer at the time of the purchase. As the purchaser you only have to complete a short survey during this process. 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.

Please note: Dealerships are not required to participate in the CHEAPR program. Dealer participation in CHEAPR is voluntary. During the purchase or lease a new eligible vehicle you should verify your dealer is participating dealer in the program and verify your dealer has prepared and submitted an application through their dealer account. All dealers who have participated in the program can be found through the CHEAPR - Program Statistics page.

Rebate+ New

The applicant will receive a Prequalification ID after applying at the CHEAPR online application. The dealership can enter in the Prequalification ID into the dealership portal to claim the rebate. It can be stacked with the Standard rebate and the total amount can be taken off the price of the vehicle.

Rebate+ Used

The applicant will receive a Prequalification ID after applying online. This rebate can either be redeemed at point of sale or post purchase by the applicant. The dealership can enter in the Prequalification ID into the dealership portal to claim the rebate or the applicant can claim it themselves by applying online.

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 application is approved.

How are CHEAPR funds allocated?

Funds are limited and all funds are allocated on a first-come, first-served basis.

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?

Applicants must meet the following eligibility criteria to participate in the Program:

1. Be a Connecticut resident at the time the eligible vehicle is purchased or leased.  Active-duty military members stationed in Connecticut are eligible to apply for a rebate.
2. Purchase or lease an eligible vehicle in Connecticut (see Eligible Vehicle List).
3. Submit a complete online application within 45 calendar days after the vehicle purchase or lease date either through the dealership for the Standard Rebate, Rebate+ New, and Rebate+ Used. Rebate+ Used applications can also be submitted post-purchase directly to the Program Administrator.
   • For the purposes of the Program, the date of purchase or lease is the date the vehicle is taken into possession by the Applicant and confirmed via the date the purchase/lease agreement is signed.  For Tesla, and other vehicles ordered without a standard purchase/lease agreement, date of purchase/lease is the date of the first vehicle registration with Connecticut DMV.
4. Not make or allow any modifications to the vehicle's emissions control systems, hardware, software calibrations, or hybrid system.
5. Retain ownership of the vehicle for a minimum of 24 consecutive months immediately after the vehicle purchase or lease date (Ownership Period).
   • For leased vehicles, the original lease must be a minimum of 24 months.
• No rebates will be issued to applicants if they have relinquished ownership of the vehicle prior to receiving the rebate.
6. Register the vehicle with the Connecticut DMV for a minimum of 24 consecutive months.
7. For Rebate+ New and Rebate+ Used Applicants, meet the Program's residency or income qualifications (see CHEAPR Implementation Manual).

Individuals are eligible for a Rebate+ incentive if they meet the residency or income qualification requirement of the Program. Rebate+ incentives for new or used vehicles are limited to applicants who meet the Rebate+ residency or income qualification by residing at an address located within an Environmental Justice (EJ) Community or Distressed Municipality, by having an income less than 300% of the Federal Poverty Level (FPL) or participating in an approved state or federal income-qualified program. Approved income qualified programs along with Poverty Level guidelines and a map of qualifying EJ communities are available in the CHEAPR Implementation Manual.

Rebate+ New and Used can qualify for a  prequalification voucher through the consumer portal at https://apply.drivecheapr-ct.org/  by confirming that their address is located within an Environmental Justice Community or Distressed Municipality, or their income is less than 300% of the Federal Poverty Level , or that they participate in an approved state or federal income-qualified program. Rebate+ New and Used can be redeem at point of sale at the participating dealerships. Rebate+ Used can also be redeem post purchase for sales by online dealerships.

Residency or Income qualified applicant is defined in Implementation Manual. The approved state or federal income qualified programs and details on the required proof of participation is outlined in CHEAPR Implementation Manual.

Standard Rebates and Rebate+ New will be issued directly to the dealership or OEM through Automated Clearing House (ACH) deposit. Rebate+ Used applicants will have the choice to receive their funds either at Point of Sale, or post-purchase by check or electronically through ACH.  The program is not responsible for rebate funds that are incorrectly deposited as a result of incorrect ACH information supplied by the Applicant, Dealership or OEM. Applicants that request a rebate check must cash it within 90 days of the date on the check.  Checks not cashed within this timeframe will be cancelled, and the rebate funds will be returned to the Program.  The Administrator may request a voided check from the Applicant to validate the ACH information provided.

Rebate+ New and Used voucher have an expiration date of one year after approval date.

When will I receive my CHEAPR incentive?

The program is designed so that the consumer receives the standard rebate, rebate+ new and rebate+ used at the time of the sale. Rebate+ used can also be claimed post purchase. When the application is submitted by the dealer through the dealer portal the funds will be set aside for the dealership. Once the application is approved, the dealership will be reimbursed through electronic funds transfer. Rebate+ Used incentive that is claimed post purchase will be sent directly to the purchaser or lessee by check or electric funds transfer.

How long is the voucher valid for?

Applicants' prequalification voucher is valid for one year after approval.

Is there a deadline to apply?

CHEAPR applications for the Standard Rebate and Rebate+ New and Rebate+ Used must be submitted by the dealer or consumer, respectively, 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.

OTHER INCENTIVES

 

Are there any federal tax incentives for electric vehicles?

Federal tax credits for the purchase of BEV, PHEV, and FCEV cars purchased in 2023 or after may be eligible for a federal income tax credit of up to $7,500. Pre-owned (used) vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000.The availability of the credit will depend on several factors, including the vehicle's MSRP, its final assembly location, and your modified adjusted gross income (AGI).

For further information on current federal tax incentives, visit:

• https://fueleconomy.gov/feg/taxcenter.shtml
• https://fueleconomy.gov/feg/taxfaqs.shtml

Can I use the federal tax credit for electric vehicles as well as the CHEAPR incentive program?

The CHEAPR incentive program is a Connecticut state program and is independent of the federal electric vehicle tax credit. Participation in other incentive programs does not disqualify an applicant from participation in CHEAPR.

Are there any incentives for installing EV charging stations?

Connecticut utilities have several programs that may qualify you to receive funds for electric vehicle charging stations.

Eversource + United Illuminating Make Ready Programs

Launched on January 1, 2022, the Connecticut EV Charging Program is administered by Eversource Energy (Eversource) and The United Illuminating Company (UI). The Connecticut EV Charging Program is a new nine-year program that is designed to meet consumer demand for charging infrastructure by providing incentives for electric vehicle supply equipment (EVSE) as well as rate design offerings.

For more information on available EV charging incentives, visit Eversource and UI's EV Charging Program webpages:

• Eversource: Residential | Commercial
• United Illuminating: Residential | Commercial

Federal Tax Credits for Charging Equipment

Consumers who purchase qualified residential charging 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.

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.