How to exchange old, high-emitting vehicles for an electric vehicle in Colorado
The Colorado Energy Office is offering an incentive to those who want to purchase an electric vehicle. Now those eligible can apply to exchange a qualified old or high-emitting vehicle for an electric vehicle.
Applications for the Vehicle Exchange Colorado program will open to eligible participants on Aug. 31. Income-qualified Coloradans may apply to exchange an old or high-emitting vehicle for a point-of-sale rebate to purchase or lease an electric vehicle, which includes both battery electric vehicles and plug-in hybrid electric vehicles.
The application portal for the rebates will be available through the Colorado Energy Office's Vehicle Exchange Colorado webpage. The office will accept applications on an ongoing basis until the funding is gone. A total of over $1.8 million will be available for EV rebates through the exchange program.
"With many low- to moderate-income Coloradans historically finding the cost of electric vehicles out of reach, this program will help bridge that gap," said CEO Program Manager Ed Piersa in a statement. "The transportation sector represents one of our state's largest sources of greenhouse gas emissions, and every resident in Colorado should have the ability to make the transition to a clean car in a way that doesn't break the bank. This is a win-win situation. Electric vehicles have lower fuel and maintenance costs for vehicle owners, all while helping improve air quality across Colorado."
Additional Information from the Colorado Energy Office:
A $6,000 rebate is available to purchase or lease a new EV and a $4,000 rebate is available to purchase or lease a used EV. Recipients may only redeem this rebate to purchase or lease vehicles with a manufacturer's suggested retail price or purchase price of $50,000 or less. Rebate recipients must purchase or lease their EV from an authorized automobile dealer within 180 days of being issued the rebate. CEO will continue to add authorized automobile dealers to this list as more automobile dealers are approved.
To qualify for a VXC rebate, Coloradans must have an income that is no more than 80% of the area median income in the county where they live. Applicants must also own an operational gasoline- or diesel-powered vehicle that is at least 12 years old (e.g., model year 2011 or older for a 2023 application) or fails a Colorado emissions test to exchange for a rebate. The vehicle must be currently registered under the applicant's name with the Colorado Department of Motor Vehicles and the vehicle's title must be issued solely to the applicant. There cannot be an outstanding loan on the vehicle. Applicants must have a Colorado Driver's License to apply for this program.
To verify income-qualification, an applicant can submit a copy of their most recent tax return or proof of enrollment in at least one of several income-qualified programs. To prove Colorado residency, applicants can submit one of several document types, including, but not limited to a valid Colorado Driver's license or ID with the applicant's current address, a computer-generated bill, or a printed bank statement. Individuals who are unable to provide any of these documents to verify a physical State of Colorado address may be eligible to provide alternative documents, such as a letter from a local government agency or non-profit organization explaining their situation. More information about acceptable documentation to prove eligibility is available on the Vehicle Exchange Colorado webpage.
Coloradans who receive a rebate through VXC may also take advantage of other electric vehicle purchase incentives, including state and federal electric vehicle tax credits.
