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Colorado EV Tax Credit Income Limit

Published on Jul 9, 2023 by Boulder Team

Does the Colorado EV Tax Credit Have An Income Limit?

When it comes to exploring EV (Electric Vehicle) tax credits, one commonly asked question is: "Does the Colorado EV tax credit have an income limit?" To put it simply, the Colorado EV tax credit does not have an income limit. This article provides a comprehensive overview of the Colorado EV tax credit, who is eligible, and the necessary criteria to qualify.

An Overview of the Colorado EV Tax Credit

The State of Colorado has a commitment to encouraging environmentally-friendly transportation solutions. One significant step in this direction has been the introduction of the Innovative Motor Vehicle Credit, a refundable income tax credit for taxpayers who purchase or lease a new electric or plug-in hybrid electric vehicle.

 

A key feature of this credit is that it is refundable, meaning that if the credit amount exceeds your tax liability, the excess can be refunded to you. Another advantage is the absence of an income cap for taxpayers looking to claim the credit.

Who is Eligible for the Credit?

Any taxpayer who purchases or leases a qualifying EV within the tax year can claim this credit. This extends to individuals, estates, trusts, C corporations, partnerships, and S corporations. From January 1, 2024, tax-exempt entities and local governments in Colorado can also claim this credit.

Income Limitations and the Colorado EV Tax Credit

As it stands, the Innovative Motor Vehicle Credit in Colorado does not have an income limit. This means that taxpayers at all income levels who meet the above criteria can benefit from this credit. It's an inclusive incentive designed to promote the adoption of green transportation technologies, regardless of a taxpayer's income level.

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