Budget Breakdowns: How Much is the Colorado EV Tax Credit Worth?
If you’re in the market for a new vehicle, there’s never been a better time to go electric. With Colorado’s EV tax credit currently worth $5,000, you can significantly reduce the cost of your new ride. But act fast! This generous credit will drop to $3,500 in the new year.
How Much is Colorado’s EV Tax Credit Worth?
How Does the EV Tax Credit Work?
If you’re a Colorado resident purchasing a new electric vehicle, we have some good news - you’re eligible for the state’s EV tax credit!
Colorado’s $5,000 EV tax credit is designed to make EVs more accessible and can be applied to the purchase or lease of a new EV with an MSRP up to $80,000. Lease agreements need to have an initial term of two years minimum. New this year, EV shoppers also have the option to assign their tax credit to a participating dealership, who will reduce the price of the vehicle by the tax credit amount at the time of purchase!
To sweeten the deal even more, EVs with an MSRP under $35,000 are also eligible for an additional tax credit of $2,500.
Note: the Colorado Energy Office does not provide tax advice. Please see a licensed tax professional to understand if you are eligible for any tax credits. The Colorado Department of Revenue Taxpayer Helpline can be contacted here.
What About Federal Tax Credits?
In addition to the state tax credit, you may also qualify for a federal tax credit of up to $7,500 when you purchase or lease an EV. The federal credit varies based on the vehicle’s make and model, so be sure to explore your options to maximize your benefits. For more information, visit our ‘Are You Eligible for An EV Tax Credit’ page - your wallet will thank you!
Are There More Ways to Save?
Yes - don’t forget about utility rebates! Many Colorado utility companies offer incentives for EV owners, helping you save even more. And as if that wasn’t enough, EVs also have lower fueling and maintenance costs across the board, bringing your total cost of ownership down as well. To learn more, visit our Save Money page.
Ready to Make the Switch?
Excited to start your electric journey? Let’s find the perfect EV for you! Check out this vehicle shopper tool, sponsored by Xcel Energy, where you can compare vehicle styles, prices and more! This tool is available to all, regardless of your utility company.