Colorado EV Tax Credits & Incentives Breakdown

As the automotive industry continues to turn more and more towards electrification, the state of Colorado has begun to emerge as a leader in the promotion of electric vehicle adoption. The eco-friendly benefits to the environment mean even the government wants to encourage the sale of EVs like the Nissan LEAF and Ariya. Colorado has introduced a range of tax credits and incentives that are sure to encourage shoppers to take advantage and join the electric revolution if they haven’t already. With electric vehicles available right here at Boulder Nissan, we wanted to help you navigate these tax credits and incentives so read on for a breakdown on everything you could benefit from by purchasing an EV here in Colorado.

First and foremost, there’s a federal EV tax credit that shoppers can benefit from regardless of the state in which they purchase their vehicle. That means residents of Colorado can benefit from this one in addition to the state tax credits and other incentives we’ll touch on later. The federal tax credit is available to certain shoppers and affords up to $7,500 depending on how many kilowatt hours of battery capacity the purchased vehicle has to offer.

On top of the $7,500 you could earn from the federal government, you could earn an additional $2,500 or $5,000, depending on the MSRP of the vehicle. The smaller amount is available for EVs with an MSRP of up to $35,000 while the larger amount is for those up to $80,000.

Stepping away from the vehicle itself for a moment, you could get additional tax credits by purchasing and installing eligible EV charging equipment. The credit is equal to 30% of the cost of installation, which includes the EV charging port itself, the components and parts that enable the port to charge and any labor necessary for installing the charging station. The maximum amount of this tax credit is $1,000, but you can double it by also installing energy storage equipment associated with the charging station.

In addition to each of these tax credits there are a host of other incentives you’ll be able to take advantage of by purchasing or leasing an electric vehicle here in the state of Colorado. Check out the following list for some of the examples of other incentives for which you might be eligible.

• Vehicle Exchange Colorado
  • This rebate program is only available to income-qualified residents of the state and it enables these shoppers to replace their old vehicles with electric vehicles by partially covering the upfront costs of the EV purchase.
• Utility Rebates
  • Check with your utility provider to see if they offer additional rebates designed to offset the purchase cost of your new EV or EV charging station.
• Xcel Energy
  • If you’re a customer of Xcel Energy, you could be eligible for up to $3,000 or $5,500 in rebates for purchasing or leasing a used or new electric vehicle, respectively.

These are just a few of the additional incentives you could take advantage of, as there are tons of others that you can track down by visiting DriveElectricColorado.org. For example, many other utility companies offer similar rebates to Xcel Energy. If you have any questions or need further guidance on navigating the Colorado EV tax credits and incentives available to you, don’t hesitate to give us a call here at the sales desk. We look forward to hearing from you and seeing you behind the wheel of your new electric vehicle.