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Federal cuts to electric vehicle credits could dampen sales, but CT credits aren’t going away

FILE: Electric vehicle charging stations at the University of Connecticut in Storrs on May 09, 2023.
Joe Amon
/
Connecticut Public
FILE: Electric vehicle charging stations at the University of Connecticut in Storrs on May 09, 2023.

If you’re thinking about buying an electric vehicle, you might want to buy sooner rather than later.

Federal tax credits on electric vehicles, which were set to expire in 2032, will now end on September 30 under President Donald Trump’s Big Beautiful Bill. The credits offer buyers up to $7,500 off new EVs and up to $4,000 off used EVs.

Barry Kresch is the president of the Electric Vehicle Club of Connecticut. Those savings were a big help in making the price of EVs more competitive with gas cars, he said.

“People know intellectually that it's less expensive to own an EV,” Kresch said.

“Charging a vehicle is less expensive than buying gas. They have 90% fewer parts and so they need less maintenance," he said. "But that sticker price was still a barrier and people were hesitant to spend an additional $5,000 to $7,000 on an EV that was comparable to the kind of gas vehicle they might have purchased.”

According to Kelley Blue Book, the average price for a new EV is about $9,000 more than a gas car.

Before the federal tax credits expire, Kresch expects a surge in EV purchases, followed by an eventual decline, with negative consequences for the environment.

“There’s nothing good about burning fossil fuels,” Kresch said. “This will exacerbate global warming and it will worsen public health in terms of additional cases of cardiopulmonary diseases and cancer.”

But while the federal credits are going away, purchasers of an EV in Connecticut could still see some relief.

That’s because the state has its own rebate program known as the Connecticut Hydrogen and Electric Automobile Purchase Rebate or CHEAPR.

It offers $1,500 to $5,000 off battery electric vehicles and $750 to $3,000 off plug-in hybrids. Those rebates will not be affected by the federal cuts, state officials said.

Áine Pennello is a Report for America corps member who writes about the environment and climate change for Connecticut Public.

Áine Pennello is Connecticut Public Radio’s environmental and climate change reporter. She is a member of Report for America, a national service program that places journalists in local newsrooms to cover under-reported issues and communities.