As electric vehicles (EVs) and plug-in hybrids (PHEVs) gain traction, Colorado has stepped up with some of the nation’s most attractive incentives to make the transition easier and more affordable. Whether you're interested in a fully electric or plug-in hybrid vehicle, Colorado’s EV rebate program provides generous savings for new and used vehicles, allowing residents to benefit financially while making a positive environmental impact.
Here’s an overview of Colorado’s EV credit program, why it’s one of the best in the country, and how it applies to specific EV and PHEV models available today.
Colorado’s Generous EV and PHEV Credit Program
Colorado’s EV credit program is among the most comprehensive in the U.S., offering substantial credits for new and used vehicles. Here’s the breakdown of the current incentives:
New Electric Vehicles (EVs): A $5,000 state tax credit is available for the purchase of a new EV.
Used Electric Vehicles: For a used EV, Colorado provides a $2,500 tax credit.
Leased Electric Vehicles: A $2,000 tax credit applies for new EV leases.
Plug-in Hybrid Vehicles (PHEVs): Certain plug-in hybrids, like the Mazda CX-90 PHEV, also qualify for the state credit, making it easier to afford a vehicle with both electric and gasoline capabilities.
These credits are straightforward and don’t include restrictions based on income or vehicle range, making Colorado’s program accessible and competitive compared to other states.
How Colorado Stands Out from Other States
Many states have modest EV credits or incentives that limit eligibility by income or other factors, but Colorado’s incentive structure is simpler and more inclusive. For instance:
California offers up to $2,000 in rebates for income-eligible buyers, with no support for used EVs.
New York offers up to $2,000 on new EVs for income-qualified buyers, with no credit for used vehicles.
In contrast, Colorado offers flat-rate incentives for both new and used EVs, with no income restrictions, which makes the state’s EV program stand out as one of the most straightforward and generous in the country.
Popular Models and Potential Savings in Colorado
Here’s a closer look at how the savings stack up for popular EV and PHEV models in Colorado:
Kia EV9 (New Model)
Price (Base Model): Approximately $54,000
Federal Tax Credit: $7,500
Colorado State Credit: $5,000
Total Potential Savings: $12,500
Effective Price After Credits: $41,500
Nissan Leaf (Used Model)
Price (Used Model): Approximately $18,000
Federal Tax Credit: Not applicable for used vehicles
Colorado State Credit: $2,500
Total Potential Savings: $2,500
Effective Price After Credits: $15,500
Mazda CX-90 PHEV (Plug-In Hybrid Electric Vehicle)
Price (Base Model): Approximately $47,000
Federal Tax Credit: Up to $7,500 (dependent on battery capacity)
Colorado State Credit: $5,000
Total Potential Savings: Up to $12,500
Effective Price After Credits: $34,500
How to Claim Your Colorado EV Credit
After purchasing an eligible EV or PHEV, claiming the Colorado EV credit is straightforward. When you file your state tax return, you’ll need to submit Form DR 0617 to claim the credit amount. The credit applies directly to your state tax liability, allowing you to reduce your tax due by the full credit amount for the year of purchase.
Take Advantage of Colorado’s EV Savings Today
With these unmatched state incentives, Colorado makes it easier and more affordable to switch to electric and plug-in hybrid vehicles. Whether you’re looking at a brand-new Kia EV9, a used Nissan Leaf, or a versatile Mazda CX-90 PHEV, the Colorado EV credit program offers impressive savings. For more details on finding the best EV or PHEV for you, reach out—I’d be happy to help guide you toward a more sustainable driving future.