Press Releases
10/14/2026
DEEP Announces Increased Incentive Levels For CHEAPR Program Effective October 15th
Increased Incentive Level Reflects Connecticut’s Continuing Commitment to Clean Air and Helping Residents Afford Cleaner 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 15, 2026. 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.
Effective October 15th, DEEP is increasing the standard incentive for new battery electric vehicles from $1,000 to $1,500. Demand for CHEAPR rebates skyrocketed in 2025 during the lead up to the loss of the federal tax credit on October 1, 2025, and as a result, DEEP reduced the amount of the standard rebate. Since the expiration of the federal tax credit, CHEAPR rebates have dropped by 50%. The drop in the number of CHEAPR rebates is the result of several factors including the impact of tariffs on manufacturing costs and product availability. Returning the standard rebate back to $1,500 can help consumers by addressing part of the gap created by policy changes by the federal government. Affordability remains top of mind for the Lamont Administration and with high gasoline prices, CHEAPR incentives can make cleaner, more affordable transportation choices available by reducing the upfront costs of BEVs.
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 current levels while DEEP considers other program improvements. There remains significant interest in Rebate+ with demand slightly ahead of last year. 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 Connecticut drivers.
“With gasoline and diesel prices at all-time highs, it’s more important than ever that the CHEAPR program continue to meet Connecticut drivers where they are,” said DEEP Acting Commissioner Emma Cimino. “Connecticut’s CHEAPR rebate remains a popular incentive that has helped almost 28,000 drivers get behind the wheel of an EV and benefit from lower fuel and lifetime maintenance costs.”
EVs can be CHEAPR over the long term
Cars and trucks cost us more than their up-front purchase price. These costs are called the “total cost of ownership” or “TCO” and many factors go into determining their impact. TCO includes upfront costs such as purchase price, taxes and registration fees; recurring costs such as fuel, maintenance, repairs and insurance; and end of ownership costs that reflect depreciation in the resale value of the vehicle.
While BEVs may not be right for everyone, if you tend to purchase used vehicles and hold on to them for a while, then a BEV will likely cost you less over the long run. BEVs are inherently more efficient than internal combustion vehicles because more energy goes to moving the vehicle and less is wasted as heat, and electricity is usually less expensive than gasoline when used as a transportation fuel (e.g., at Connecticut’s retail electric rate and assuming average efficiency of 3.5kWh, fueling with electricity is equivalent to paying about $2.66/gallon). EVs require less maintenance (no oil changes, water pumps, timing belts, etc.), and their brakes last longer because BEVs use regenerative braking technologies.
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 $50 million in rebates to Connecticut residents who have purchased or leased almost 28,000 new or used electric vehicles. Since the beginning of the year, CHEAPR has issued incentives for over 2,700 new EVs, including over 520 for Rebate+.
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 15, 2026, the Standard incentive for a new battery electric vehicle will be $1,500. The Rebate + incentive for a new battery electric vehicle will be unchanged at $3,000. As this award is issued in addition to and stackable with the Standard incentive, the new total incentive will be $4,500. 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. With uncertainty and added expense caused by tariffs, changes in federal policy, and auto manufacturers cancelling their investments in new technology, new electric vehicles remain 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 17 days in 2026, 22 days in 2025 and 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.
Helping to put cleaner vehicles on our roads is one of the most effective means to combat air pollution and the associated poor health outcomes while also pushing back on federal cuts to health care and weakened fuel efficiency and emissions standards. CHEAPR helps fill the gap left by the federal government and will remain an important tool to help Connecticut consumers overcome the higher sticker price on a vehicle that will save them money on fuel and maintenance while having a more positive impact on our air quality.
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 webpage.
For more information visit the CHEAPR Website.- Twitter: @CTDEEPNews
- Facebook: DEEP on Facebook
Contact
DEEP Communications
DEEP.Communications@ct.gov
860-424-4100