Press Releases
08/11/2025
Now Is A Great Time to Take Advantage of Cost-Saving Clean Energy Tax Credits and Incentives
Tens of Thousands of Dollars in Federal Rebates and Tax Credits Available to Help Residents Realize Savings From Purchasing EVs, Heat Pumps, Rooftop Solar, and More
(HARTFORD)—Thinking about buying an electric vehicle? Want to save money on cooling and heating costs by installing solar panels or a heat pump? The Connecticut Department of Energy and Environmental Protection (DEEP) is reminding residents that there are tens of thousands of dollars in federal and state incentives available to help you save on the purchase cost of these items, and to help you start realizing the savings that can be had from driving an EV or installing an efficient heat pump in your home or business.
Affordability is top of mind for most people these days. Many Connecticut residents are already enjoying the lower maintenance costs and savings on gas that come with owning an all-electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV), as well as the greater efficiency and lower energy bills that come from using a heat pump to cool and heat your home or through installing other types of efficiency and weatherization measures. If you want to realize these benefits for yourself, now is a good time to do so, as federal clean energy tax credits will be expiring before the end of the year following the recent passage of the Congressional budget reconciliation bill.
Under the budget reconciliation bill, tax credits for electric vehicles, residential solar, and home energy efficiency will expire in September and December of this year, so it’s important to act now to see what you might be eligible for. Some of the tax credits can be combined with state incentives, offering consumers even bigger savings.
EVs
Until September 30, consumers can save up to $7,500 on new EV and PHEV purchases with a federal tax credit, plus $500 with a standard rebate, and an additional $1,500(PHEV)/$3,000(EV) for income qualifying individuals through Connecticut’s CHEAPR program. Used 2023 or older model year EVs and PHEVs are eligible for up to $4,000 with a federal tax credit and an additional $5,000(EV)/$3,000(PHEV) through CHEAPR for income-eligible individuals.
Energy Efficiency
Through the end of this year, consumers can save thousands of dollars on a long list of home energy and efficiency upgrades, in addition to existing state and local home energy and efficiency incentives. Homeowners and renters can identify federal energy savings opportunities and their end dates using Rewiring America’s calculator. More information about state energy efficiency savings opportunities is available at EnergizeCT.
State Incentives
Despite this federal uncertainty, popular state incentives will continue to be available to Connecticut residents and businesses interested in these technologies. DEEP will be working with key stakeholder groups like the CHEAPR board and the Energy Efficiency Board to continue to provide robust support for these measures after the federal tax credits expire. For example, DEEP has temporarily reduced the popular CHEAPR standard rebate from $1500 to $500 for the next two months to ensure thatpreserve the state CHEAPR funding to support CT residents interested in EV purchases after the federal tax credits expire. As we approach the end of September, DEEP and the CHEAPR board will look at potentially increasing the standard rebate above $1500 after the federal tax credits expire. While we continue to assess these options, it is clear that the best time to buy is now, when CT residents and businesses can take advantage of the full federal and state incentives available.
“If you’ve been thinking about buying an EV, or getting a heat pump or rooftop solar installed to help reduce your gas and utility bills, now is a great time to take advantage of the significant savings offered by federal clean energy tax credits before they expire,” DEEP Commissioner Katie Dykes said. “Connecticut consumers have shown that they’re interested in these clean technologies with demand for heat pumps doubling in Connecticut since 2019 and recent demand for electric vehicle rebates up 30%. Since these tax credit changes were announced, we’re seeing more people buying EVs, heat pumps, and weatherizing their homes and businesses.”
Next Steps
Use the chart below to find a list of available federal tax credits, when they expire, and more information about eligible projects, equipment, and any limits on who can use the tax credit, including income limits. Residents can also find a link to state-sponsored programs that in most cases can provide additional savings on top of the federal tax credit.
Here are few fast facts to help get you started on your journey to savings:
- New and Used Electric vehicle (EV) and Plug-in Hybrid Electric vehicles (PHEV) tax credits expire first on September 30, 2025 and most of the energy-related credits expire at the end of the year (December 31, 2025).
- Residents are encouraged to check their eligibility for each tax credit because they may have income limits for single and joint filers.
- Residents should keep in mind these tax credits help to reduce taxes that are owed, including any estimated taxes that have already been paid from paycheck withholding for example. But in most cases, they cannot reimburse the taxpayer beyond the amount of taxes owed. For example, an individual who purchases a new EV and a heat pump could reduce their 2025 taxes by up to $9,500.
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Federal Tax Credits (in order of expiration) |
Relevant State Incentive Programs |
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New EV & PHEV (30D) |
Up to $7,500 |
Vehicles purchased before September 30, 2025 are eligible. More Info |
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Used EV & PHEV (25E) |
Up to $4,000 |
Vehicles purchased before September 30, 2025 are eligible. More Info |
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Heat Pump A/C or Heater (25C) |
Up to $2,000 |
Installations before December 31, 2025 are eligible. More Info |
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Heat Pump Water Heater (25C) |
Up to $2,000 |
Installations before December 31, 2025 are eligible. More Info |
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Weatherization / Insulation (25C) |
Up to $1,200 |
Installations before December 31, 2025 are eligible. More Info |
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Electrical Panel (25C) |
Up to $600 |
Installations before December 31, 2025 are eligible More Info |
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Home Energy Audit (25C) |
Up to $150 |
Installations before December 31, 2025 are eligible. More Info |
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Rooftop Solar
25D – residential owned
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30% of qualifying costs
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Battery Storage (25D) |
30% of qualifying costs |
Purchases made before December 31, 2025 are eligible. More Info |
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Geothermal Heating (25D) |
30% of qualifying costs |
Purchases made before December 31, 2025 are eligible. More Info |
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EV Charger (30C) |
Up to $1,000 |
Chargers placed in service before June 30, 2026 are eligible. More Info |
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To get started, you can find a contractor for many home energy upgrades here, or if you’re interested in an electric vehicle talk to a dealer about eligible vehicles.
- Twitter: @CTDEEPNews
- Facebook: DEEP on Facebook
Contact
DEEP Communications
DEEP.communications@ct.gov
860-424-3110