EV incentives though have been a success for many plug-in vehicle buyers, they have been a learning experience in many cases. And, Connecticut is a good example of it. Recently reports come that states it is in the middle of revamping of its EV incentive program. The new program Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) aims to revise EV incentives for low-income households.
To accommodate that, the state will provide nearly $10 million in funding from various sources to CHEAPR. Initially, more than 5,600 point-of-sale rebates including 2,600 for fully electric vehicles have been proposed. The plan of action also includes dealers in the process.
Many state incentives earlier were mostly subsidizing Tesla purchases for those who can genuinely afford them. However, the new changes strictly prohibit it and limit the fundings.
Revamping the EV Incentives
What’s proposed in the state roughly parallels what’s been enacted in Oregon, Maryland, California, and Georgia. California has recently restructured its policy and includes an income cap as does Oregon. Similarly, neighboring New York has a drive clean rebate of up to $2000 for the purchase or lease of an EV. Besides, Massachusett’s state program ran into funding issues earlier this fall.
Seeing a growing concern, Connecticut plans to take the action as early as possible. Therefore, its idea to give rebates will surely influence buyer behavior or household vehicle choice. It lowers the maximum sticker price in several steps, from $60,000 initially to $50,000 in 2018 to $42,000 in 2019.
Connecticut also lowers the amount of the rebate for BEVs, which it controversially gives a higher rating for long-range EVs: $1500 for vehicles with more than 200 miles of range vs. $500 for those with less than that. Despite these adjustments, Connecticut also makes sure that 47% of all rebates issued to those buying EVs went to those buying the Tesla Model 3.
Other states with lower incentives and moderate-income buyers are Maine and Vermont. The planned draft also notices that supplemental rebates will encourage low-income residents to buy an EV. California and Oregon have a great success rate in this section by offering $2000 and $2500 respectively to qualifying low-income residents.
The Plan of Action
In California, a revamped incentive system now includes both an upper-income cap and a booster for buyers with low-income households. A survey of those who received the low-income rebated found 62% indicating that they wouldn’t have purchased an EV without such a rebate. According to reports, Connecticut’s program will likely also include incentives toward the purchase of used EVs in the upcoming days. Also, the draft recognizes that low-income and minority communities are often among the worst affected by air pollution.
Currently, 44% of all rides in the state start or end in low-income zones. And, giving rebates will become a key factor in potentially moving Connecticut’s ride-hailing operations to plug-in vehicles.
What’re your views on Connecticut’s proposed aim? Do share your thoughts in the comment section!