Colorado proposes stunning EV rebates of up to $26,500
Colorado has proposed stunning incentives/rebates up to $26,500 on purchase of new electric vehicles (EVs). Following the footsteps of California, Colorado is accelerating its shift from internal combustion engines (ICEs) to electric powertrains in order to reduce its carbon footprints. Increasing incentives or rebates on the purchase of EVs will definitely attract more customers.
In addition to rebates on new EVs, the state government has also proposed incentives of up to $11,000 on the purchase of used EVs.
The list of those EV rebates includes a state incentive of $5,000 on purchase or lease of new vehicles with effect from 1st of July this year. The list also includes $2,500 worth of low-cost EV tax incentive available from the first month of next year, a credit of up to $6,000 available through a vehicle exchange program, and a credit of $5,500 offered by electric utility & natural gas company called Xcel Energy. Atop all those credits, the U.S. federal government is offering a federal tax credit of up to $7,500, which is available throughout the nation.
The low-cost EV tax credit is available for battery-powered vehicles available with a price tag of less than $35,000. Customers have only a few options in this range as just a handful of EVs currently fall in this category. The list of EVs in this category includes the Nissan Leaf, Mini Cooper SE, the Hyundai Kona Electric, and the Chevrolet Bolt EV (which is going to be discontinued soon). However, some of these EVs don’t qualify for the federal tax credit of up to $7,500 because of the critical battery minerals requirements.
Additionally, Colorado is offering credits of up to $12,000 for commercial EVs like pure electric and hybrid trucks. To qualify for this credit, the commercial EVs must be new, have a minimum 4-kWh battery capacity, have a gross vehicle weight rating (GVWR) of more than 8,500 pounds, and must be registered in the state. Even vehicles like Hummer EV can qualify for this credit if their GVWR is of more than 9,000 pounds.
Colorado Gov. Jared Polis’ administration has set a goal to add nearly 1 million light-duty EVs on the state’s public roads by the end of 2030. Currently, just around 86,000 EVs are running on the state’s roads. The administration is quite confident that the proposed rebates could go a long way to enable the state in meeting its ambitious target.