With state incentives, now may be the best time to buy an electric car in Colorado
Electric vehicles are the future, at least that's what Colorado's Energy Office is hoping.
"In 2022, 10.5% of all new vehicles sold in Colorado were electric," said Carrie Atiyeh with the Colorado Energy Office.
The state wants to have 940,000 EVs on the road by 2030. Right now we have 73,000. In order to get there, Colorado is incentivizing drivers.
An electric vehicle will cost more up front than a gas-powered vehicle, but there are many incentives designed to help close the price gap. If you're thinking of going electric this year, you may want to act fast before those incentives change.
"The maximum savings right now for a Colorado resident could be as much as $9,500 when you incorporate both the federal tax credit and the state tax credit," said Atiyeh.
In 2023, you can get a $2,000 state tax credit when you purchase a new electric vehicle, or $1,500 when you lease one. There's also a $7,500 federal tax credit, but requirements for that are set to change soon.
"So there may be vehicles that today do qualify for that tax credit but they may not in March," said Atiyeh.
"Many times people come in and that's the first thing they ask for," said Laurel Hanlon, product specialist at Polestar Denver.
Electric car company Polestar says the incentives are a big driver for customers.
"They're looking at the convenience of it, the cost, you don't have to look forward to rising and lowering prices at the gas station," said Hanlon.
With current gas prices, Atiyeh says EV owners can save 75% on fuel costs.
Polestar Denver sold 420 cars last year. That was a massive increase from the year prior. They expect the trend to continue as the EV industry sees more variety and competition.
"There is so much opportunity for growth and a new way for driving," said Hanlon.
"There really is a make, model and price point, for any budget and lifestyle," said Atiyeh.
Plug-in hybrid electric vehicles are eligible for these tax credits. Used electric vehicles may qualify for up to $4,000 in federal tax credits. Utility companies like Xcel Energy also offer rebates.