Colorado 2024 EV Tax Credits Guide [+ Calculate Your Savings]
Steve Birkett is an electric vehicle advocate based in Greater Boston, Massachusetts. He is a content creator and marketing professional who contributes written and recorded pieces to a wide range of media outlets. His analysis has been featured in Find The Best Car Price, WWLP TV, and Torque News, among others. He has also had video content featured on Inside EVs. Birkett was an EV Guide for Plug in America events in Massachusetts (Drive Electric Cambridge and Drive Electric Lowell) and Ohio (Earth Day 2019 at Cleveland Zoo). He participates in quarterly advisory panel meetings for EVolve New York (a state-level charging initiative) and has contributed to focus groups for prominent U.S. charging networks.
Birkett is a father-of-two who loves nothing more than packing up the family and hitting the road in their latest electric car, which is currently a 2022 Hyundai IONIQ 5. With multiple Chevy Bolts in his past, as well as a Chevy Volt and Tesla Model 3 LR in the extended family, plus various EV rentals when he ventures back home to his native United Kingdom, Birkett has more than 100,000 all-electric miles under his belt and is always ready to try out a new electric vehicle.
For press inquiries, contact steve@findthebestcarprice.com
Although it's true that electric vehicles (EVs) can be expensive upfront, there are federal and state incentives like rebates and tax credits in place to make EVs more financially appealing.
But what state EV incentive programs are in place in Colorado?
Let’s see what current incentives are available in your area and whether or not you qualify for them.
Last Updated: January 2024
Table of Contents
Colorado EV Savings Calculator
What EV Incentives Are Available in Colorado?
The Centennial State has quickly become the most EV-friendly area in the United States, with incentives and initiatives to help buyers at all levels get into an electric vehicle. For starters, EV incentives in Colorado rose to $5,000 in the second half of 2023, up from $2,000 earlier in the year. As a result, sales of both new and used electric vehicles have surged thanks to Colorado's generous EV incentives.
Colorado has the following broad-based incentives in place for electric vehicles and associated purchases for charging:
- $5,000 tax credit for the purchase or lease of a light-duty passenger vehicle
- $2,800 tax credit for the purchase of a light-duty electric truck (or $1,800 for leasing a light-duty electric truck)
This legislation is valid through 2026.
Let’s take a look at each of these in more detail.
Incentives for Purchasing an EV in Colorado
Colorado offers a tax credit for up to $5,000 off the purchase or lease of a new electric vehicle.
To qualify, EV buyers must meet the following purchase criteria:
- The motor vehicle or truck purchased, leased, or converted must be titled and registered in Colorado.
- The purchase, lease, or conversion of a new motor vehicle or truck qualifies for the credit only if the motor vehicle or truck is titled and registered in Colorado in the time and manner prescribed by law.
- The purchase or lease of a motor vehicle or truck previously registered in Colorado or any other state or jurisdiction does not qualify for the credit.
- For leased electric vehicles, the lease must be at least two years.
- For conversions, the motor vehicle or truck must be titled and registered in Colorado at the time of conversion.
- For purchases and leases, the motor vehicle or truck must be new and not previously titled or registered in any jurisdiction.
- The motor vehicle or truck must be titled and registered in Colorado.
- The motor vehicle or truck must have a maximum speed of at least 55 miles per hour.
- The motor vehicle or truck must be propelled to a significant extent by an electric motor.
- The motor vehicle or truck’s battery must have a capacity of at least 4 kWh.
- The motor vehicle or truck’s battery must be capable of being recharged from an external power source.
Additional incentives are also available to low-income applicants, affordable EVs, and buyers who trade in an existing vehicle. These include:
- Up to $6,000 off the price (point-of-sale rebate) of a new EV, when a gas or diesel vehicle 12+ years old is traded as part of the deal.
- Up to $4,000 off the price (point-of-sale rebate) of a used EV, when a gas or diesel vehicle 12+ years old is traded as part of the deal.
- Up to $2,500 off the price (point-of-sale rebate) of a new EV, when the MSRP is less than $35,000 (takes effect Jan. 1st, 2024).
The Vehicle Exchange Colorado (VXC) program also accepts combustion trade-ins where the vehicle has failed the state's emissions test.
However, the EV must be priced at less than $50,000 to qualify. The applicant must also earn under 80% of their area's median income, or be enrolled in a qualifying assistance program.
For more on the Centennial State's deep well of initiatives to help residents purchase an electric car, visit this state information site to see if you meet the requirements for Colorado's other EV incentive programs.
If you or the model you intend to purchase do not meet the criteria for this incentive, take a look take a look at our federal EV incentives resource to see if you qualify for any federal incentives.
Other EV Incentives Offered in Colorado
Colorado offers the following incentives for electric vehicle charging, maintenance, or related benefits:
- The state's EV Home Wiring program offers rebates of up to $1,000 to assist with installation and hardware costs of ENERGY STAR-certified home charging equipment. Funding and enrollment for this program is subject to availability, so check the state information site to confirm the current status.
- Xcel Energy offers residential customers a rebate of up to $500 for the purchase and installation of home charging, with applicants in certain income brackets eligible to receive up to $1,300. The organization's EV Accelerate program also makes charging hardware available for a monthly fee.
- Xcel Energy customers should also inquire about the availability of rebates to assist with purchasing new or used electric vehicles.
- Holy Cross Energy (HCE) provides complimentary or discounted EV charging stations for some residential customers.
- Black Hills Energy (BHE) offers residential customers a $500 rebate for the purchase and installation of a Level 2 EV charging station
- Some Gunnison Country Electric Association (GCEA) customers may qualify for a rebate of 50% of the cost to buy/install home EV charging. The GCEA rebate is capped at $1,250 for eligible applicants.
- San Isabel Electric Association (SIEA) offers up to a $500 rebate for residential customers who purchase a qualified EV.
Now that you know what electric vehicle incentives are available in Colorado, what else do you need to know about making the switch to all-electric transportation?
Read our guidance on how to prepare for an EV to make sure the models you’re considering will meet your real-world driving needs!
