Bad news for electric vehicle shoppers: Connecticut is reducing its standard incentive for battery EVs and plug-in hybrids from as high as $1,500 to a reduced rebate of $500 starting Friday, Aug. 1.
The reduction comes in response to a 30% increase in demand, driven in part by the end of federal tax credits on electric vehicles, according to the Department of Energy and Environmental Protection.
Those federal credits, which offered up to $7,500 off new EVs and up to $4,000 off used EVs, will end after September 30 as part of President Donald Trump’s recently passed spending and tax package.
DEEP Commissioner Katie Dykes said it may seem counterintuitive for the state to lower its rebate during increased demand, but said the budget for the rebate program, known as CHEAPR, is finite.
“We are trying to be good stewards of those dollars in light of the extraordinary demand for EVs,” Dykes said. “The goal here is rationing the CHEAPR rebate a bit for the next two months in order to support what we anticipate will be a lot of volume of folks taking action to maximize that $7,500 tax credit.”
Connecticut’s standard rebate will be lowered through Sept. 30. Officials say they’ll monitor demand in the meantime and expect to make more adjustments to the rebate amount later this year.
There are no changes to CHEAPR’s Rebate+ program for those who earn less than 300% of the federal poverty level, participate in a qualifying state or federal income qualifying program, or live in an environmental justice community, according to DEEP.
