If you are an EV enthusiast living in Colorado, I have some good news. The tax credit has been raised from $5000 to $7500 and implemented on 1st January 2024. The credit was raised following the Colorado governor’s approval of House Bill 23-1272. The Colorado electric vehicle tax credit aims to reduce carbon emissions in the state and fund projects that include sustainable transportation. The state tax credit might also cover the production of sustainable fuel stations for a greener environment. However, how can you benefit from the Colorado electric vehicle tax credit as an EV buyer? Let’s look at some of the highlights of this state tax credit and what EVs qualify for it.
What are the Highlights of Colorado Electric Vehicle Tax Credit?
Are you excited yet? I have summarised all the highlights from the Colorado EV tax credit. You can easily catch up on the details and decide whether or not you want to go electric. Coloradans should know some crucial aspects of the Colorado electric vehicle tax credit.
1- Amendments
In July 2023, the Colorado tax credit increased to $5000 for EVs under $80,000 MSRP. Tesla models were trending and were included in the tax credit. Other vehicles include the Ford Mustang Mach E, Volkswagen ID.4, etc. The government noticed its positive effects and the governor decided to amend the EV tax credits 2024. As of January 2024, the vehicles under $35000 MSRP now get an additional $2500 tax credit.
Moreover, these newer changes placed Colorado among the highest EV incentive states in the US. What’s more? There is another excellent piece of news for Coloradan drivers. The $7500 federal tax credit issued by Colorado Inflation Reduction Act 2022 benefits EV drivers with qualifying EVs. They might receive as much as a $12,500 tax credit.
2- Eligible EVs
EV owners having EVs or PHEVs worth $80,000 or less are eligible for the new tax credit. Moreover, many vehicles qualifying for the Colorado tax credit are eligible for the federal tax credit. The Coloradan drivers might have hit the jackpot with this one. However, the Federal electric vehicle tax credit does not cover additional battery components. If someone bought an EV in 2023, they are still eligible for the tax credit. According to stats, 81% of EVs sold in 2023 are eligible for the Colorado tax credit. Big names like Tesla and Ford contribute to most EV sales in the US. EV fans are interested in buying any of the best electric cars under $35,000, which the tax credit covers.
3- Buyer savings
If you are a Coloradan EV driver, you might strike a bigger bargain than you realise. However, how much savings will you make if your vehicle meets the EV tax credit eligibility? For instance, Tesla has been leading the EV industry for ages. It offers affordable, high-performance EVs that are fan favourites. Their most popular model is the Tesla Model Y, which might capture your attention. Therefore, you decided to buy a Tesla Model Y and start doing the math. The vehicle is sold at $43,990 MSRP, which falls under the Electric vehicle tax credit income limits. Combined with the $5000 Colorado tax credit and the $7500 federal tax credit, it reduces the price to $31,490, saving $12500!
4- Refundability
The Colorado law demands the state to return extra income that exceeds the specific cap. This is because of the Taxpayer’s Bill Of Rights known as TABOR. The Colorado Energy Office’s EV website states that the credit is refundable. This statement was issued under the jurisdiction of the Colorado Department of Revenue’s FYI Income 69. The Electric Vehicle Financing Colorado works for the benefit of EV drivers and promotes sustainable transportation.
Furthermore, the statement clarifies that the credit might exceed the tax, which is refunded to the taxpayer. For instance, you need to use more of Colorado’s state tax. In such a case, the state will repay the taxpayers any remaining credit balance. This is done as an additional cash refund.
5- Xcel Energy Rebate
Brace yourself for another good news. The Coloradan drivers can also benefit from the Xcel Energy EV rebate. Imagine enjoying a whopping tax credit of $12500 and an extra package offered by Xcel Energy. It is a high-end energy product company providing high-end service in Minneapolis. They operate in the Midwest and promise a rebate of $5,500 to EV buyers who will purchase or lease EVs from them.
Moreover, they aren’t handing out such a massive deal to anyone. You must have an electric service account with the company and meet their income requirements. The Colorado EV rebates and incentives qualify residents enrolled in programs like LEAP, CARE, SNAP, or TANF. However, on 7th February 2024, the Excel Energy Rebate has been separated from the Colorado tax credit.
6- Other incentives
Besides Colorado electric vehicle tax credit, residents can enroll in other local incentives. These incentives have been established to promote EV purchases and reduce greenhouse emissions in the US. Moreover, the incentives let you replace high–emitting old vehicles with new EVs. What’s more? The program might cover the initial costs of the EV at the time of purchase from an authorised dealer. The trade-in vehicles must be 12 years or older to qualify. Other Colorado EV rebates and incentives may also offer money back on EV purchases. All these incentives benefit EV buyers and their pockets.
List of Electric Vehicles eligible for Colorado EVs Tax Credit
Now, you get what you may get when buying EVs as a Coloradan. But what are the EVs that qualify for the incentive? Are there any big names among them? Here’s a list of EVs that qualify for the Colorado electric vehicle tax credit and their prices.Â
| Electric vehicles | Estimated prices |
| Acura ZDX | $74,745 |
| Cadillac Lyriq | $58,590 |
| Chevrolet Blazer EV | $54,595 |
| Ford F-150 Lightning | $57,090 |
| Honda Prologue | $56,095 |
| Tesla Model 3 Performance | $55,000 |
| Tesla Model Y | $44,630 |
| Tesla Model X | $81,380 (including $1390 destination fee) |
| Volkswagen ID.4 | $52,740 |
| Nissan Leaf | $29,280 |
| Rivian R1S | $76,700 |
| Rivian R1T | $74,800 |
| Hyundai Kona Electric SE | $34,050 |
| Fiat 500e Inspi(RED) | $34,095 |
| Hyundai Ioniq 6 SE Standard Range | $38,650 |
| Tesla Model 3 | $40,630 |
| Kia Niro EV Wind | $40,975 |
| Volkswagen ID.4 Standard | $41,160 |
| Chevrolet Bolt EV | $26,500 |
| Chevrolet Equinox EV | $41,900 |
| Mini Hardtop Cooper SE Classic | $31,895 |
Conclusion
EV buyers in Colorado are pretty happy with their state law. The Coloradan governor emphasised the importance of sustainable transportation by offering Colorado electric vehicle tax credit. The tax credits had been raised to $5000 in July 2023. Furthermore, a $7500 federal tax credit will be issued to the buyers from January 2024. In short, the Coloradan EV buyers might enjoy tax credits worth $12,500. The vehicles eligible for the Colorado EV rebates and incentives must be priced under $80,000. Moreover, companies like Xcel Energy offer a $5,500 rebate for EV enthusiasts if they lease an EV from them. This might open new doors for the Coloradans as more people go electric.
Are Jeep electric vehicles worth the hype? Can EVs cause fire incidents? Find out more by visiting our blog.
I am Muhammad Waqas and I am dedicated to promoting sustainable vehicles. Observing EV trends, studying the intricacies of the EV industry, and promoting new EV launches fall under my expertise. I have been working in this field for 5 years and making efforts for a sustainable and healthier future.
