Coloradans can get more money back on eligible electric vehicle purchases
On January 1st. a new tax credit went into effect for electric vehicles (EV). Coloradans who are buying an EV priced $35,000 or less are eligible for an additional $2,500 tax credit. Colorado already has a tax credit of $5,000 available for those who buy a new EV. Right now, Colorado is offering up to $7,500 back on eligible EV purchases.
"These tax credits, though, do start to roll back in 2025, so if you're considering an EV right now, 2024 is the year to maximize savings and get the full tax credit," said Carrie Atiyeh, Associate Director for Transportation Fuel and Technology at the Colorado Energy Office.
There is also $7,500 in Federal tax credits available for EV purchases, however, the rules on that money have changed. Electric Vehicles are eligible depending on where they are manufactured and where the battery materials come from.
"There's actually a limited number of EV's that will qualify for the full $7,500 Federal tax credit," Atiyeh explained.
The second change applied to both the Federal and State tax credits. Dealerships will now be able to instantly apply the amount of the tax credit to the purchase price of the vehicle at the time of sale, and then get reimbursed by the Government later. It used to be the car buyer had to wait until they could apply the credit to their income tax return.
"In August of last year, the State launched the Vehicle Exchange Colorado program. It's available for income qualified Coloradans who replace and recycle their old, high-emitting, gas vehicle with an EV," Atiyeh said.
Vehicle Exchange Colorado offers a $4,000 rebate for a used electric vehicle or $6,000 for a new EV.
"These programs are really making these EV's more accessible and more affordable for more Coloradans," Atiyeh said.
LINK: EV Colorado
Questions about the Electric Vehicle Tax Credits should go to the Colorado Department of Revenue and any questions or advise needed about the tax credit should go to a qualified tax specialist.
