Colorado EV incentives, tax credits and rebates

Current EV incentives in Colorado

In addition to the pair of federal EV incentives, Colorado residents can benefit from a major state-level tax break on the purchase or lease of a new EV.

While there’s no state-level incentive for purchasing and installing a Level-2 charger at home, numerous utility providers are providing rebates of up to $1,000.

Here’s a full breakdown of both EV purchase and EV charging incentives in the Centennial State.

Electric vehicle purchase incentives in Colorado

Outside of the pair of federal incentives, Colorado offers just one state-level incentive to purchase an EV, but it’s a big one.

Let’s start at the federal level and go from there.

• The federal EV tax credit offers a tax credit of up to $7,500 on a new EV costing up to $80,000, and a tax credit of up to $4,000 on a pre-owned EV costing up to $25,000. The income limits for new and used are $150,000 and $75,000, respectively, though the limit rises for heads of households or people who are married and filing jointly.

For more details and a list of vehicles that qualify for full or partial credit, check out our feature explaining the EV tax credit.

Now, let’s look at EV purchase incentives that are specific to Colorado:

• The electric vehicle state tax credit offers Colorado residents a tax credit of $5,000 with the purchase or lease of a brand new EV with a manufacturer’s suggested retail price (MSRP) of up to $80,000 and an additional $2,500 tax credit if the vehicle’s MSRP is below $35,000.

Some of the cheapest new EVs for sale in 2024 with an MSRP below $35,000 include the Nissan LEAF, Mini Cooper Electric, Hyundai Kona Electric and Fiat 500e. The Nissan LEAF also qualifies for a partial federal EV tax credit ($3,750), meaning you could potentially purchase an entry-level Nissan LEAF in Colorado for an astounding $11,250 off MSRP. With a starting price of $28,140 for Nissan Leaf 2024 models, Colorado residents could pay as low as $16,890 after considering the tax credits.

In addition to the state EV income tax credit, we found at least two Colorado-based utility providers that currently offer their customers an additional EV purchase incentive:

• Gunnison County Electric Association is offering a 25% rebate (up to $1,000) on the purchase of a new or used EV.
• San Isabel Electric Association is offering a $500 rebate through Dec. 31, 2024, on the purchase of a new or used EV.

There may be more, so it’s worth browsing your current home energy provider’s website to see if they offer any sort of EV purchase incentive.

» WHAT ARE: Tax credits

EV charging equipment incentives in Colorado

When you consider the state’s generous EV purchase incentive ($5,000 to $7,500) and general eco-friendliness, you might assume that Colorado would offer some sort of tax credit for installing EV charging equipment at home.

But as of July 2024, it doesn’t — at least not at the state level.

Thankfully, there are numerous home energy providers in Colorado that may offer you a rebate on charging equipment. The town of Vail also has a nice rebate for its residents, so if you happen to live in the ski haven, you’re in luck.

Keep in mind that if you don’t see your home energy provider in this chart, that doesn’t necessarily mean they don’t have a rebate for you. Be sure to check their website or call them directly to ask.

How much can EV incentives save you in Colorado?

When you put it all together, Colorado residents definitely stand to save the most by purchasing or leasing a brand new EV instead of a used one.

In the chart below, you can see how combined state- and federal-level tax incentives can provide a net 25% rebate on a brand new Tesla Model Y. As mentioned above, the percentage savings on a brand new Nissan LEAF are even higher (40%). These are all just ballpark figures, but they should serve to give you some idea of how affordable EV ownership can be in Colorado.

Even though state-level rebates are weaker for used EVs (technically, nonexistent), don’t let that dissuade you from purchasing a pre-owned EV since there’s still a $4,000 federal rebate on used EVs with sale prices below $25,000.

Finally, Colorado residents may also qualify for a $500 to $1,000 rebate on a home charger install, depending on what sort of incentives their home energy provider currently offers. If you qualify for a $1,000-plus rebate, you could end up installing a Level-2 charger on your property for as little as $300.

Example savings