Colorado Tax Credit
Effective July 1, 2023
Colorado EV tax credit of $5,000 for the purchase or lease of vehicles with MSRP up to $80,000.
For more information visit: The Colorado Energy Office
Federal Electric Vehicle Tax Credits
For New EVs
Effective April 18, 2023
New clean vehicles must meet specific mineral and battery component requirements to qualify for a tax credit. This applies to vehicles obtained on or after this date, even if purchased earlier. The credit can be up to $7,500, with $3,750 additional credit if the vehicle’s battery components are North American-made and another $3,750 if critical minerals are U.S.-sourced, originate from free trade agreement countries, or were recycled in North America. Eligibility is limited to cars under $55,000 or SUVs, vans, and pickup trucks under $80,000.
As of February 6, 2023, certain vehicles’ MSRP cap has been raised to $80,000, expanding the list of eligible models. Income caps for consumers are $150,000 for single filers, $225,000 for heads of household, and $300,000 for joint filers. Lease credit benefits leasing companies and may reduce lease costs.
New electric vehicles purchased after 2010 may qualify for a federal income tax credit of up to $7,500, depending on battery capacity. Written contracts made before August 16, 2022, remain unaffected by new tax credit rules. Starting in 2024, dealers can offer the EV tax credit as a point-of-sale discount for new and used EVs, reducing upfront costs. Learn more here.
Taxpayers can only claim one credit per vehicle, and eligibility can be checked through this list. Some vehicles, like the GMC Hummer EV, Lucid Air, Tesla Model S, Model X (due to pricing limits), and others not assembled in North America, are not eligible.
For Used EVs
$4,000 or up to 30% of the vehicle price (whichever is lower)
Only eligible for vehicles under $25,000, at least 2 years old, purchased from a dealer
Income caps for consumers: $75,000 for single filers, $112,500 for head of household, and $150,000 for joint filers.
Learn more about the EV tax credits from the Inflation Reduction Act.
Vehicle Exchange Colorado Program
Effective August 31, 2023
To be eligible for the Vehicle Exchange Colorado (VXC) program, you must meet the following criteria:
Reside in Colorado.
Be 18 years of age or older.
Have the eligibility to purchase or lease a vehicle in Colorado.
Own an old or high-emission vehicle that qualifies for the program.
Meet at least one of the following income requirements:
– Have a household income below 80% of the area median income in your county of residence.
– Be enrolled in specific financial assistance programs, including:
- Colorado Affordable Residential Energy (CARE) Program
- Colorado’s Weather Assistance Program (WAP)
- Regional Transportation District (RTD) LiVE
- Be a Section 8 voucher holder
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
- State of Colorado Low-Income Energy Assistance Program (LEAP)
- Supplemental Nutrition Assistance Program (SNAP)
*Please note that only one VXC rebate is permitted per tax household.
Exchange Vehicle Eligibility:
To qualify for the Vehicle Exchange Colorado (VXC) program, certain conditions must be met:
The vehicle title must be in the participant’s name only, and there should be no outstanding loan or lien on the vehicle.
The vehicle must be currently registered under the participant’s name with the Colorado DMV.
The vehicle should be in operational condition.
The vehicle must be powered by gasoline or diesel.
The vehicle must meet one or more of the following criteria:
– The vehicle should have a model year that is at least 12 years old (model year 2011 or older for a 2023 application).
– The vehicle must fail an emissions test in Colorado.
It’s important to note that motorcycles, recreational vehicles (RVs), campers, and boats are not eligible for the VXC program.
Participants in the Vehicle Exchange Colorado (VXC) program can obtain a point-of-sale rebate for two types of vehicles:
- Battery Electric Vehicles (BEV): These vehicles are entirely powered by a battery.
- Plug-in Hybrid Electric Vehicles (PHEVs): These vehicles use a battery with an average range of 20–50 miles and also have a traditional gas tank and engine.
VXC participants are eligible for rebates when purchasing new or used BEVs or PHEVs with a manufacturer’s suggested retail price (MSRP) or purchase price of $50,000 or less. However, it’s essential to note that these vehicles must be acquired from a VXC-authorized automobile dealer.
For New EVs:
For Used EVs:
$4,000 tax rebate
For more information please visit: The Colorado Energy Office
Statewide E‑Bike Rebates
Effective August 16, 2023
Colorado residents are eligible for rebates on E-Bikes based on their income:
Residents earning between 80 to 100 percent of their county area’s median income can receive a $500 rebate on qualifying E-Bikes.
Residents earning less than 80 percent of their county area’s median income are eligible for a $1,100 rebate on qualifying E-Bikes.
To qualify for this program, participants must:
- Be a resident of the state of Colorado.
- Be at least 18 years old.
- Provide proof of a Colorado address.
- Provide proof of income.
The E-Bike must meet the following criteria:
- It can be any class 1, 2, or 3 E-Bike as defined by the State of Colorado.
- It must have an electric motor with a maximum power of 750 watts.
- Full-suspension mountain bikes are not eligible for the rebate.
For more details, you can visit the Colorado Energy Office website.
Rebate and Incentives Tool
Find out how much you can save on your home EV charger installation with our free tool. Simply type in your zip code and see if you qualify for rebates and incentives in your area.