Press Releases
09/24/2025
DEEP Announces Increased Incentive Levels For CHEAPR Program Effective October 1st
Increased Incentive Level Reflects Connecticut’s Commitment to Clean Air and Helping Residents Choose Transportation Options With Lower Lifetime Maintenance Costs
(HARTFORD) — The Connecticut Department of Energy and Environmental Protection (DEEP) announced today that the standard incentive level for the popular Connecticut Hydrogen and Electric Vehicle Purchase Rebate (CHEAPR) program will be changing effective October 1, 2025. The CHEAPR program offers incentives to Connecticut residents who purchase or lease an eligible new or used battery electric (BEV) or plug-in hybrid electric (PHEV) vehicle from a licensed Connecticut automobile dealership or original equipment manufacturer.
Demand for CHEAPR rebates has remained strong in 2025 after a record 2024, including increased interest in Rebate+. This demand has been driven in part by the passage of the federal budget reconciliation bill, which will sunset the federal electric vehicle tax credit on September 30, 2025. The incentive levels announced today are intended to continue to help Connecticut residents purchase electric vehicles after federal tax credits expire.
Consequently, DEEP is increasing the standard incentive level for new battery electric vehicles to $1,000. No other incentive levels are changing at this time. DEEP temporarily dropped the standard CHEAPR rebate to $500 in July to conserve the CHEAPR budget while federal tax credits were still available, in anticipation of raising the standard CHEAPR rebate again after tax credits expire.
The Rebate+ incentives, which provide additional incentives for prequalified low- and moderate-income families to consider a new or used electric vehicle, will remain at the increased levels announced earlier this year. The standard incentive remains the most popular within the program. The program has seen steady growth in interest in the Rebate+ incentive. DEEP will continue to monitor demand for this popular program, and work with the CHEAPR board and the Connecticut General Assembly to ensure the program continues to support CT drivers.
“Connecticut’s CHEAPR rebate remains a popular incentive to help more drivers get behind the wheel of an EV,” said DEEP Commissioner Katie Dykes. “Connecticut drivers continue to choose EVs, for their lower lifetime maintenance costs and lower emissions. As a state that suffers from some of the worst air quality in the Eastern United States, CHEAPR remains an important tool to give Connecticut consumers the option to purchase a vehicle that will have a more positive impact on our air quality and can also be more affordable to maintain over time.”
The Connecticut Automotive Retailers Association said, “Since the inception of the CHEAPR program, the Connecticut Automotive Retailers Association along with our state’s franchised new car dealerships have partnered with CT DEEP to support consumers and promote the sale of electric vehicles in Connecticut. Car buyers value these incentives, which make electric vehicles more accessible and affordable.”
Transportation emissions are a significant contributor to respiratory and cardiovascular disease, and without strong support for cleaner vehicles, more pollution will mean more asthma attacks, hospital visits, and chronic illness — especially in vulnerable communities. At the same time, federal cuts to health care and weakened air quality standards are stripping away the very protections people rely on, leaving families exposed just when they need support the most.
Strong Consumer Interest Despite Uncertainty at the Federal Level
Participation in CHEAPR continues to increase, as Connecticut drivers choose EVs in record numbers- we’ve seen a 293% growth in EV registrations from the relaunch of the current CHEAPR program in 2021 to 2025. This increase shows that Connecticut drivers are increasingly choosing EVs, for many reasons: EVs have lower fuel and maintenance costs, produce less pollution, and are fun to drive. The federal government, however, is creating significant uncertainty by cutting consumer tax credits and tougher emissions standards, while imposing unnecessary tariffs raising the prices for many products including vehicles, driving up inflation. Despite these headwinds, Connecticut drivers are leading the way, and the state is keeping the door open for everyone — even as Washington walks away.
About CHEAPR
CHEAPR provides a cash rebate at the Point-of-Sale (POS) to Connecticut residents who purchase or lease a new eligible vehicle costing up to $50,000 from a licensed Connecticut new car dealer. DEEP launched the CHEAPR program in May of 2015 and since that time has issued over $43 million in rebates to Connecticut residents who have purchased or leased over 22,000 new or used electric vehicles. Since the beginning of the year, CHEAPR has issued incentives for over 2,857 new EVs, including over 470 for Rebate+. This represents an increase of about 4% in Rebate+ redemptions over the same period from this time last year.
Incentive levels fall into two buckets: “Standard” and “Rebate +.” All Connecticut licensed drivers are eligible for the standard incentive. To be eligible for Rebate +, a Connecticut licensed driver must be pre-qualified and either meet income thresholds, participate in an identified list of income qualified programs, or reside in either a distressed municipality or an environmental justice (EJ) community. The Rebate + incentive is awarded in the form of a voucher, so applicants must pre-apply to ensure eligibility.
As of October 1, 2025, the Standard incentive for a new battery electric vehicle will be $1,000. The Rebate + incentive for a new battery electric vehicle will be unchanged at $3,000. As this award is issued in addition and stackable with the Standard incentive, the new total incentive will be $4,000. The Rebate + incentive for a new plug-in hybrid vehicle will be unchanged at $1,500 and is awarded in addition to the Standard incentive, for a total incentive of $2,000. While the price of an EV is quickly reaching parity with gas powered cars, new electric vehicles are still out of reach for many moderate-income residents, the Rebate+ program also offers incentives for used battery electric and plug-in hybrid electric vehicles. These voucher-based incentives also remain unchanged at $5,000 and $3,000, respectively. Keep in mind that Rebate+ requires pre-approval to ensure eligibility.
About Connecticut’s Air Quality
There are over 2.7 million vehicles registered in Connecticut. Cars and trucks account for almost 70% of smog-forming emissions in Connecticut and almost 35% of our climate pollution. Air quality in Connecticut exceeded the federal health-based standards for ozone (smog) on 23 days in 2024 and has exceeded the standard on 21 days so far in 2025. Individuals in sensitive groups, including children, the elderly and those with pre-existing health conditions, who are exposed to unhealthy levels of air pollution are at an increased risk of developing respiratory symptoms and may experience shortness of breath or difficulty breathing. Children and people with asthma or other lung disease are most at risk for experiencing these symptoms. People experiencing severe symptoms are more likely to miss work or school and seek medical treatment.
DEEP monitors, tracks, and forecasts daily air quality levels across Connecticut for ozone from May 1st through September 30th each year and for fine particulate matter (PM2.5) each day of the year. On April 30, 2024, DEEP began informing Connecticut’s regulated community and the general public of the ozone season via the State of Connecticut E-mail list serve and posting air quality forecasts on the DEEP web page, available here.
More information: http://www.DriveCHEAPR.org- Twitter: @CTDEEPNews
- Facebook: DEEP on Facebook
Contact
DEEP Communications
DEEP.communications@ct.gov
860-424-3110