Press Releases
01/17/2025
DEEP Reminds Connecticut Residents that New Incentive Levels for CHEAPR Program Began Jan 1 2025
New Incentive Levels Targeted to Improve Affordability of Electric Vehicles for Low- to Moderate Income Residents and Families
(HARTFORD) — The Connecticut Department of Energy and Environmental Protection (DEEP) is reminding the public that incentive levels for the Connecticut Hydrogen and Electric Vehicle Purchase Rebate (CHEAPR) program changed on January 1, 2025. As prices for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) continue to decline and consumer interest in the CHEAPR program continues to grow, the new incentive levels will enable DEEP to continue to meet consumer demand for the standard CHEAPR rebate within available resources, while prioritizing higher incentive levels to improve EV affordability for low- and moderate-income residents in Connecticut.
On Jan. 1, 2025, several CHEAPR incentive changes went into effect, including:
- The Standard Incentive, available to all Connecticut residents purchasing new BEVs, have been reduced from $2,250 to the pre-pandemic level of $1,500.
- The Rebate+ New incentive, which is now available to low- and moderate-income Connecticut residents purchasing new BEVs, increased from $2,000 to $3,000.
- The Rebate+ New incentive is awarded in addition to the Standard incentive, so low- and moderate-income Connecticut residents can now expect a total incentive of $4,500, more than double the standard incentive, as envisioned by Public Act 24-81.
- The Rebate+ Used incentive, which is available to low- and moderate-income Connecticut residents purchasing used BEVs and PHEVs, increased from $3,000 to $5,000.
- The Rebate+ Used incentive for PHEVs increased to $3,000.
- For a full list of incentive changes, please visit DEEP’s website: CHEAPR - Home
Returning the Standard Rebate Incentive to pre-pandemic levels is possible due to the maturation of the national electric vehicle market since the CHEAPR program was launched. While BEV and PHEV prices generally remain higher than the price of gas-powered models, the price differential continues to shrink. New BEV models are now available for prices as low as $29,000, before rebates and credits. As of September 2024, over a million light-duty BEVs had been purchased nationwide in 2024 alone, representing a 12% increase over 2023. Connecticut has seen robust consumer interest in EVs, in line with these national trends. Connecticut BEV registrations increased by over 200% and PHEV registrations increased by 162% during the three-year period from July 2021 through July 2024. Over the same time period, DEEP saw a nearly 75% year-over-year increase in CHEAPR Rebate+ grant uptake for new BEVs and PHEVs, and a 123% year-over-year increase in CHEAPR Rebate+ grant uptake for used BEVs and PHEVs. The Rebate+ program, by incentivizing affordable BEVs and PHEVs for low to moderate-income residents, is creating a new market.
Given the dropping cost of BEVs and PHEVs and growing consumer demand, the Department is reorienting the CHEAPR program to focus on making these vehicles more affordable for low- and moderate-income families in Connecticut. Low- and moderate-income consumers stand to benefit considerably from the electric vehicle transition—the total cost of ownership (TCO) of a BEV could amount to 50% or less than gas powered cars due to lower fuel and maintenance costs. Despite these significant savings over the lifetime of the vehicle, upfront costs can still be a barrier for many Connecticut families. This builds off changes to the CHEAPR program made by the General Assembly in PA 24-81, which increased the standard rebate amount for residents of environmental justice communities to at least 200% more than the standard rebate. This change will make electric or hybrid vehicles a more affordable option for low- and moderate-income residents who are shopping for a vehicle.
“Connecticut drivers continue to increasingly opt for cleaner alternatives such as plug-in hybrids and fully electric vehicles. In the last two years, electric vehicle registrations in our state have more than doubled, and CHEAPR is an incredibly popular and effective program that puts more drivers behind the wheel of an electric vehicle,” said DEEP Commissioner Katie Dykes. “It’s important that Connecticut residents who have low- and moderate-incomes have the opportunity to choose a cleaner transportation option if they want to.”
“CHEAPR is a critical tool to advance the sales of electric vehicles in Connecticut,” said Eric Sandstrom, CHEAPR Board member and dealer principal at Maritime Chevrolet in Fairfield, Connecticut. “The program provides consumers with a financial incentive to purchase or lease an electric vehicle. In addition to advancements in technology, EV owners will save money over the long run as EVs are much less expensive to operate over their lifetime than gasoline-powered vehicles.”
Dr. Mark Mitchell, Co-Chair of the CT Equity and Environmental Justice Advisory Council and the Director of the CT Environmental Justice Electric Vehicle Collaborative (EJEVC), said, “The CHEAPR program and our collective efforts to support the deployment of clean, low-cost zero-emission vehicles can help to reduce our high asthma rates in our cities. People with low-to-moderate incomes are often the most acutely impacted by health problems related to air pollution. These new incentive levels will help more people at lower income levels access clean-transportation options.”
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 awarded over $34 million to Connecticut residents who have purchased or leased almost 18,000 new or used battery electric and plug-in hybrid vehicles. Of the almost 18,000 EVs rebated thus far, almost 5,000, or about 28% were purchased or leased in 2024 alone.
Incentive levels are set according to vehicle technology, with battery electric vehicles receiving a greater incentive than plug-in hybrid electric vehicles. Incentive levels are also differentiated between “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.
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. 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.
According to the Connecticut Department of Public Health, in 2023, Connecticut incurred nearly $120 million in acute care charges due to asthma as a primary diagnosis.
In Connecticut, it has been found that women, residents of Hispanic and non-Hispanic black communities, are disproportionately affected by asthma. The state’s five largest cities (Bridgeport, Hartford, New Haven, Stamford, and Waterbury), with a total population of 654,232, represent only 18% of Connecticut’s total population, yet they account for nearly half (42%) of the $119.9 million in asthma total healthcare charges. Hartford, Bridgeport, and New Haven all ranked in the top 100 most challenging cities to live with asthma in the Asthma and Allergy Foundation of America’s annual “Asthma Capitals” list in 2024.
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 listserv and posting air quality forecasts on the DEEP web page, available here.
More information about CHEAPR, and the new incentive levels, here: http://www.DriveCHEAPR.org- Twitter: @CTDEEPNews
- Facebook: DEEP on Facebook
Contact
DEEP Communications
DEEP.communications@ct.gov
860-424-3110