The following information is provided directly from each programs respective website.
The Vehicle Exchange Colorado (VXC) program helps income-qualified Coloradans recycle and replace their old or high-emitting vehicles with electric vehicles (EVs). The VXC rebate will partially cover the upfront cost of the EV at the time of purchase or lease from an authorized automobile dealer.
We encourage income-qualified Colorado residents who own eligible old or high-emitting vehicles to apply for this rebate. The Colorado Energy Office anticipates that the rebate program will launch in August 2023.
Be sure to check this website in the coming months for more information and updates!
Please reach out to the VXC Program Manager, Ed Piersa, at firstname.lastname@example.org with any questions.
VXC Participant Eligibility Requirements
In order to qualify for the VXC program, a participant must be:
- A Colorado resident
- 18 years or older
- Eligible to purchase or lease a vehicle in Colorado
- Own an eligible old or high-emitting vehicle (see the “VXC Requirements for Old or High-Emitting Vehicles Eligible for Exchange” section below)
- Meet at least one of the following income requirements:
- Household income below 80% of the area median income in the county where the resident lives OR
- Enrollment in any one of the following financial assistance programs:
- Colorado Affordable Residential Energy (CARE) Program
- Colorado’s Weather Assistance Program (WAP)
- Regional Transportation District (RTD) LiVE
- 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)
Note: Only one VXC rebate is allowed per tax household.
VXC Requirements For Old or High-Emitting Vehicles Eligible for Exchange
A resident’s old or high-emitting vehicle must meet the following requirements to qualify for a vehicle exchange rebate through VXC:
- The vehicle title must be issued to solely the participant AND must not have a lien (e.g., there cannot be an outstanding loan for the vehicle).
- The vehicle must be currently registered under the participant’s name with the Colorado Department of Motor Vehicles (DMV).
- The vehicle must be operational.
- The vehicle must be gasoline- or diesel-powered.
- The vehicle must meet one or more of the following criteria:
- Vehicle model year must be at least 12 years old (e.g., model year 2011 or older for a 2023 application) OR
- The vehicle fails an emissions test in Colorado (no model year requirement).
Note: Motorcycles, recreational vehicles (RVs), campers, and boats are not eligible for VXC.
Electric Vehicles Eligible to Purchase or Lease With a VXC Rebate
Through the VXC program, participants may redeem a point of sale rebate for the following types of vehicles:
- Battery electric (BEV), or fully electric vehicles, which are powered completely by a battery. They produce zero tailpipe emissions.
- Plug-in Hybrid Electric Vehicles (PHEVs), which are powered by a battery, with an average range of 20-50 miles, and a traditional gas tank and engine. PHEVs produce tailpipe emissions when powered by gasoline; however, the PHEV’s battery can normally cover the majority of someone’s daily driving needs.
Learn more about these types of vehicles on the EV CO website.
VXC participants can receive a rebate for a new or used BEV or PHEV with a manufacturer’s suggested retail price (MSRP) or purchase price of $50,000 or less. VXC participants can only purchase or lease a new or used BEV or PHEV from a VXC-authorized automobile dealer.
VXC EV Rebate Amounts
Eligible Colorado residents can receive the following rebate amounts for a qualified electric vehicle purchase or lease (note: a lease term must be a minimum of two years).
- New electric vehicle (BEV or PHEV): $6,000
- Used electric vehicle (BEV or PHEV): $4,000
Other Vehicle Rebate Options and Tax Credits
Starting from April 2023, there are specific criteria that must be met in order to qualify for the maximum federal EV tax credit of up to $7,500 when purchasing a new electric vehicle. These qualifications include factors such as personal or household income, limits on the vehicle’s MSRP based on the vehicle type, production requirements related to the vehicle and its components, and sourcing requirements for battery components and critical minerals from countries with which the United States has a Free Trade Agreement.
If a vehicle meets all requirements except for the battery sourcing and component criteria, it may still be eligible for half of the federal tax credit, which amounts to a maximum of $3,750.
Furthermore, EV leases are also eligible for the $7,500 EV tax credit. However, starting from January 2023, leased vehicles are not required to fulfill the aforementioned qualifications for EV purchases. Nevertheless, since the vehicle is owned by the dealership, you need to request the dealer to provide the EV tax credit to you in the form of a rebate or reduction in the sales price. Many dealerships do pass on these cost savings to their customers, so it is advisable to inquire about the EV tax credit if you are considering leasing an EV.
Additionally, used EVs are now eligible for a tax credit of up to $4,000 or 30% of the purchase price. However, they have their own set of requirements that must be met.
Please note that the information provided is based on the available data up until April 2023 so it’s important to refer to the IRS website for more information.
If you reside in Colorado and pay taxes, you have the opportunity to receive a state tax credit when you purchase or lease an electric vehicle. At present, the Colorado EV tax credit is valued at $5,000 for the acquisition or lease of a new electric vehicle with a manufacturer’s suggested retail price (MSRP) of up to $80,000. Starting from January 1, 2024, electric vehicles with an MSRP of up to $35,000 will qualify for an additional tax credit of $2,500. Take a look at the tax credit infographic to explore other potential tax credits or rebates you may qualify for. For specific tax-related information, it is recommended to consult a licensed tax professional. You can reach out to the Colorado Department of Revenue Taxpayer Helpline for further assistance.
Some Colorado utility companies, like Xcel Energy, Black Hills Energy, Holy Cross Energy, San Isabel Electric Association, and Gunnison County Electric Association offer even more incentives for Coloradans who live in their service territories. In addition to rebates, some utilities also offer “time of use” rates, which reward their residential customers with reduced electricity prices for charging overnight. Visit the US Department of Energy’s Alternative Fuels Data Center to see all utility incentives currently available in Colorado.
- Xcel Energy
Income-qualified residential customers are eligible for rebates of $3,000 – $5,500 towards the lease or purchase of pre-owned and new EVs. Residential customers may be eligible for a rebate of up to $1,300 on home wiring costs related to installing a Level 2 charger.
- Holy Cross Energy
Residential customers are eligible for free chargers and will roll installation costs into your monthly bill, spreading it over 3 years to lower your upfront costs.
- San Isabel Electric Association
Residential customers are eligible for a $500 rebate towards the purchase of qualified EVs.
- Gunnison County Electric Association
Residential customers are eligible for a rebate for 50% of the cost to purchase and install an EV charger, up to $1,250.
- Black Hills Energy
Residential customers are eligible for a $500 rebate towards the purchase and installation of an at-home Level 2 charger. Income-qualified residential customers can receive up to $1,300 in rebates towards the purchase and installation of an at-home Level 2 charger. Residential customers who are income qualified may receive rebates of up to $3,000-$5,500 towards the purchase of a new or pre-owned EV.
- United Power
Residential customers are offered the purchase and installation of a Level 2 charger at home for $19 per month, which also covers maintenance or repairs if needed. If you have your own charger, United Power offers a $1,000 rebate towards its installation.
- Yampa Valley Electric Association
Residential customers can be eligible for a $250 rebate towards the purchase and installation of a Level 2 charger.
- La Plata Electric Association
Residential customers can receive up to two at-home Level 2 EV chargers and up to $500 towards installation costs, or up to a $500 rebate off the price of your own at-home charger and installation costs.