Colorado has increased its electric vehicle (EV) incentives following the removal of federal tax credits.
New Incentives for Electric Vehicles in Colorado
Starting November 3, Colorado will raise its vehicle exchange program incentive from $6,000 to $9,000 for low-income buyers who trade in an existing car. A used vehicle credit will also increase from $4,000 to $6,000.
These new benefits outperform previous federal tax credits, which offered $7,500 for new EVs and $4,000 for used ones. Colorado residents now have a chance to receive more financial support than what was previously available.
Eligibility and Limitations of Colorado’s EV Incentives
People not eligible for the $9,000 incentive can still apply for a $3,500 EV credit, which remains unchanged. This credit can be used for new vehicles and does not require a trade-in.
However, applicants must meet stricter income limits, earning no more than 80% of the median income in their county. Additionally, they must trade in a high-polluting vehicle.
Impact on the Electric Vehicle Market
The increase in Colorado’s incentives shows that the loss of federal support won’t end the push for electric vehicles. Consumers continue to seek cleaner and more affordable cars, motivating states and manufacturers to offer assistance.
While price reductions in EVs will take time, these state incentives aim to ease the transition as supply chain costs decrease. Some states are still working to make EVs more accessible for working Americans.
