Learn more about electric vehicles:
Benefits of Owning or Leasing an Electric Vehicle
Electric Vehicles 101
Registering an Electric Vehicle in Colorado
Electric Vehicle Financial Resources
If you’re considering purchasing an electric vehicle, there are many financial incentives available.
Residential Incentives
Federal Incentives
If you bought a new electric vehicle in or before 2022, you may be eligible for a federal incoming tax credit of up to $7,500.
Learn more about the requirements here.
If you purchased a new electric or plug-in hybrid vehicle after 2023, you may be eligible for a federal incoming tax credit of up to $7,500.
Pre-owned vehicles purchased in 2023 or after are eligible for a tax credit of up to $4,000.
Learn more about the requirements here.
State of Colorado Incentives
Colorado has its own incentives that can be paired with federal incentives.
If you purchase a new electric, plug-in hybrid electric, or hydrogen fuel cell vehicle, you may be eligible for $5,000. If you lease a new vehicle, you may be eligible for $2,500.
Learn more about the requirements here.
Vehicle Exchange Program:
The Vehicle Exchange Colorado (VXC) program helps income-qualified Coloradans recycle and replace their old or high-emitting vehicles with electric vehicles. The VXC rebate will partially cover the upfront cost of the electric vehicle at the time of purchase or lease from an authorized automobile dealer.
VXC participants can receive a rebate of $6,000 towards a new Battery Electric Vehicle (BEV) or Plug-in Hybrid Electric Vehicle (PHEV) with a manufacturer’s suggested retail price (MSRP) or purchase price of $80,000 or less. Participants can receive $4,000 towards a used BEV or PHEV with a final negotiated purchase price of $50,000 or less.
Only one VXC rebate is allowed per tax household. Visit the Colorado Energy Office website to learn more about the vehicle exchange program.
Refer to this table for a summary on residential incentives:
| Incentive | Max Discount for New EV | Max Discount for Used EV | Qualifications |
| Federal Tax Credit | $7,500 (subject to change) | $4,000 (subject to change) | Income, vehicle make/model/VIN and sale price, purchase date, tax liability |
| State Tax Credit | $6,000 | N/A | Vehicle sale price and purchase date. Available only to CO residents |
| Vehicle Exchange Colorado (VXC) | $6,000 | $4,000 | Income, sale price, participating auto dealer. Available only to CO residents who are recycling an old car |
| Maximum Total Incentive | $19,500 | $8,000 |
Business and Tax-Except Organization Incentives
Federal Incentives
Businesses and tax-exempt organizations that buy a qualified commercial electric vehicle may qualify for a tax credit.
For typical cars, trucks, and vans, the maximum credit is $7,500.
For larger vehicles like school buses and semi-trucks, the maximum credit is $40,000.
