Colorado EV Tax Credit Information

Colorado allows innovative motor vehicle and innovative truck credits for the purchase, lease, or conversion of motor vehicles, trucks, and trailers that use certain alternative fuels. A motor vehicle, truck, or trailer must be titled and  registered in Colorado to qualify for the credit. The credit is refundable; to the extent that the amount of the credit  exceeds tax, the excess credit is refunded to the taxpayer.  

Beginning on July 1st, 2023, and continuing until December 31st, 2023, Colorado buyers can take advantage of the state tax credit of $5,000 for the purchase or lease of a qualifying electric or plug-in hybrid electric vehicle. Qualifying electric vehicles and plug-in electric vehicles with a manufacturer’s suggested retail price (MSRP) of $80,000 or less will be eligible for the increased tax credit. You must take possession of the vehicle on July 1, 2023 or later to claim the increased tax credit.

A taxpayer must file a Colorado income tax return, including all required forms and documentation, to claim the credit.  However, in lieu of claiming the credit, a purchaser or lessee who obtains financing for the purchase, lease, or  conversion of a qualifying motor vehicle or truck may elect to assign the credit to the financing entity that finances the  purchase, lease, or conversion. In the case of assignment, the financing entity must file a Colorado income tax return  with all required forms and documents to claim the credit.  

Yes! Nissan is the only manufacturer who actually applies the credit amount of $5,000 to your vehicle purchase upfront. In other words, you get the benefit of the tax credit when you purchase the vehicle, not when you file your taxes. Additionally, this means that even if you don't have $5,000 of income taxes to deduct the credit from, you can still benefit.

A purchaser, lessee, or owner who obtains financing for the purchase, lease, or conversion of a qualifying vehicle may,  by mutual agreement with the financing entity, assign the credit to the financing entity. In the case of assignment, the  financing entity must compensate the vehicle purchaser, lessee, or owner for the full amount of the assigned credit.  Compensation must be made in the form of a cash payment, a reduction in cash price, a capitalized cost reduction, or  some similar consideration and the amount of the compensation must be separately stated in the purchase, lease, or  loan agreement. The financing entity may charge an administrative fee for the assignment of the credit, but such fee  cannot exceed $150. 

In order to assign the credit, the vehicle purchaser, lessee, or owner and the financing entity must complete and sign an election statement (Form DR 0618). A separate election statement must be completed for each assigned credit. The election statement must be completed on the date of purchase, lease, or conversion (see the section entitled “Date of  purchase, lease, or conversion”, above). By completing the election statement, the purchaser, lessee, or owner of the  qualifying vehicle forfeits the right to claim the credit. The financing entity may authorize an agent or designee to sign  the election statement on its behalf to facilitate the assignment of the credit.

Colorado buyers can take advantage of the $5,000 Colorado tax incentive immediately upon purchase of the new Nissan ARIYA by financing your purchase through Nissan Motor Credit.

Similarly to the Nissan ARIYA, those buyers who wish to finance their Nissan LEAF purchase through NMAC are able to take advantage of the $5,000 tax credit immediately upon purchase.