Colorado offers both federal and private incentives for owning a new or used electric vehicle. These include state tax credits and rebates on home charging units. Read our article for a complete summary of Colorado rebates for electric vehicles.
Colorado Income Tax Credits for Electric Cars
Electric vehicles purchased or leased before 2026 are eligible for a state tax credit. The exact amounts will vary depending on the type of vehicle, whether it was purchased or leased, and when the vehicle was acquired. The majority of passenger vehicles will fall under the “Light Duty” categorization, which entails a gross vehicle weight rating (GVWR) of 10,000 lbs or less. The following are the established Colorado tax credits for eligible light duty electric vehicles:
Light Duty EV Purchased 2022: $2500
Light Duty EV Leased 2022: $1500
Light Duty EV Purchased 2023-2025: $2000
Light Duty EV Leased 2023-2025: $1500.
Electric Vehicle Emissions Exemption in Colorado
Vehicles powered exclusively by electricity are not required to pay for and pass an emissions test in order to renew vehicle registration.
Rebate Programs for EVs in Colorado
Utilities companies in various regions of the state offer rebates for the installation of level 2 home chargers and/or the purchase of eligible EVs.
Southern Colorado Electric Car Rebate Programs
San Isabel Electric Association offers (SIEA) rebates to current clients who install a level 2 charger at home. Customers can receive 50% (or up to 500) for level 2 non-networked home chargers. Level 2 networked chargers are eligible for a 50% (or up to $1000) rebate after installation. In addition, SIEA customers who have purchased a new EV may qualify for a $500 rebate.
Black Hills Energy offers current customers a $500 rebate with the installation of a level 2 charger. Low income residents may qualify for an additional rebate of $800, or a total of $1300 for level 2 charger installation.
Western Colorado EV Rebates
Gunnison County Electric Association will allow current customers to borrow an electric vehicle for 24 hours for free with no mileage restrictions. This is an invaluable opportunity to determine if an EV is right for you. GCEA will also give clients a rebate of 50 percent (up to $1250) for the installation of a level 2 home charger.
Holy Cross Energy (HCE) will give current clients up to two free level 2 home chargers. Customers can then choose to pay an electrician to install the charger themselves, or have HCE pay upfront costs and repay the amount in increments added to their utilities bill over 3 years.
Rebates for EVs in Northern Colorado (Including Denver Metro Area)
Xcel Energy will give eligible customers up to $3000 for the purchase or lease of a used EV, and up to $5500 for the purchase or lease of a new EV. To qualify, clients must be enrolled in a state financial assistance program (such as LEAP) and have an income of 60% or less than the state median income level.
Xcel customers may also qualify for rebates for the purchase and installation of a level 2 home charging unit. This amount is up to $500 (or $1300 for those who meet income eligibility requirements). Alternatively, Xcel provides the option to lease a wall charger and the cost of installation for a monthly fee added to the utilities bill.
Test Drive an Electric Vehicle in Littleton
If you are ready to make the switch to electric, stop by our Mercedes Benz of Littleton dealership. We have a full inventory of new and certified pre-owned EQ vehicles to suit every taste. Call or go online today to see what we have in stock and schedule your test drive.
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