Colorado EV Tax Credits Guide

The Colorado Energy Office offers information to the state’s consumers about the availability of electric vehicle tax credits. Currently, Colorado offers tax credits for the purchase or lease of EVs and plug-in hybrid electric vehicles. The state’s program also includes tax credits for the purchase, lease and conversion of light-, medium- and heavy-duty alternative fueled vehicles, such as those powered by hydrogen or compressed natural gas.

As incentive programs shift over time, it is crucial that you research the most current incentives before you buy or consult a tax specialist to ensure you qualify for a rebate or tax credit.

Does Colorado Have Tax Credits For Buying New EVs?
Colorado offers tax credits for buying new electric vehicles that must be titled and registered in the state to qualify. Vehicles that were previously titled and registered in Colorado do not qualify.

For a light-duty passenger vehicle purchase, the tax credit is $2,500 for a vehicle purchased during the tax years beginning on or after January 1, 2021, up to January 1, 2023. For a light-duty passenger vehicle purchased on or after January 1, 2023, and up to January 1, 2026, the tax credit is $2,000.

For a light-duty passenger vehicle leased on or after January 1, 2021, and up to January 1, 2026, the tax credit is $1,500.

Does Colorado Have Tax Credits For Buying Used EVs?
No, Colorado does not offer tax credit for the purchase or lease of a used electric vehicle made on or after January 1, 2017.

Does Colorado Have Credits For Installing Home Charging Stations?
Colorado does not offer incentives for installing home charging stations through any government programs, but utility companies may offer credits, rebates, or incentives for installing a home charger. Residents of Colorado should contact their local utility company to learn about program availability and eligibility.

Furthermore, a grant-based organization called Charge Ahead Colorado offers grant funding for the installation of certain types of EV charging stations at locations such as workplaces and multi-family dwellings. Individual homes do not qualify, but apartment buildings and condominium associations do.

Does Colorado Have Credits For Installing Solar Panels?
Colorado does not offer credits for installing solar panels, but there are some ways to make solar panels cheaper. If you’re installing a solar system in your home, some components will be exempt from the state’s sales taxes, resulting in some savings up front. There’s also a statute that exempts the value of a solar system from property taxes. In other words, your home’s value will increase based on your new solar system, but that increase won’t be factored into your property tax evaluations.

Colorado residents may still be eligible for federal incentives for new solar system installations.

Does Colorado Penalize EV Buyers?
Owners of EVs registered in Colorado are charged an annual Plug-in Electric Vehicle Fee of $51.88. For each fee collected, $30 is designated for Colorado’s Highway Users Tax Fund, and $20 is designated for the Electric Vehicle Grant Fund.

What Other EV Incentives Can I Get in Colorado?
Consumers who purchase an EV in Colorado may also qualify for the Federal Electric Car Tax Credit of up to $7,500. Colorado residents should also check with their local electric utilities for any additional credits or incentives.

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