The bad news for consumers of electric vehicles is that, as of Friday, August 1, Connecticut will only offer a $500 rebate instead of the $1,500 standard incentive for battery EVs and plug-in hybrids.
The Department of Energy and Environmental Protection said the cut was made in reaction to a 30% surge in demand, which was partly caused by the expiration of federal tax subsidies for electric vehicles.
As part of the recently passed spending and tax plan by President Donald Trump, those federal incentives, which provided up to $7,500 off new EVs and up to $4,000 off used EVs, would expire after September 30.
Although it may seem paradoxical for the state to reduce its rebate during periods of greater demand, DEEP Commissioner Katie Dykes said that the CHEAPR program’s money is limited.
Given the exceptional demand for EVs, we are attempting to be good stewards of those monies, Dykes stated. In order to accommodate the large number of people who we expect will be taking action to maximize that $7,500 tax credit, the CHEAPR rebate will be somewhat rationed over the next two months.
Through September 30th, Connecticut’s regular rebate will be reduced. In the interim, officials say they will keep an eye on demand and anticipate adjusting the refund amount further this year.
According to DEEP, CHEAPR’s Rebate+ program remains unchanged for those who live in an environmental justice community, earn less than 300% of the federal poverty line, or are enrolled in a qualifying state or federal income qualifying program.
