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SEPTEMBER 18, 2023

Colorado Rebates

In a state that’s recognized for having 300 sunny days every year, it’s no surprise there are a wealth of programs that incentivize drivers to switch to electric vehicles that can be powered via solar energy. 

But going electric isn’t only about lessening your impact on the environment. 

Driving an electric vehicle (EV) and installing a level 2 charger at home can also save you money and time compared to a gas-powered car. 

While this guide covers all things EV-related incentives in the state of Colorado, there are rebates, discounts, and other initiatives available all over the U.S.

If you want to learn more about electric vehicle rebates by state — as well as updates surrounding EVs and home electrification — bookmark the Kopperfield blog and subscribe to our newsletter at the bottom of this blog.

State-wide EV incentives for Colorado

There are several incentive programs for electric vehicle owners offered and sponsored by various governing bodies in Colorado, with some incentives worth up to $6,000. 

Vehicle Exchange Colorado

The Vehicle Exchange Colorado (VXC) program helps income-qualified Coloradans recycle and replace their old or high-emitting vehicles with EVs or plug-in hybrids. The VXC rebate will partially cover the upfront cost of a new or used EV at the time of purchase or lease from an authorized automobile dealer. 

New purchases may receive up to $6,000 in rebates, and used vehicles up to $4,000. 

To get all your questions answered when it comes to participant eligibility, which vehicles are covered, where to purchase them, and tons more, visit Vehicle Exchange Colorado (VXC) Program at the Colorado Energy Office website.

Innovative Motor Vehicle Credit

The Innovative Motor Vehicle Credit offers a refundable income tax credit for the purchase or lease of a qualifying vehicle. 

Vehicles that are eligible for this credit must be new, electric or plug-in hybrid, under 8,500 pounds and $80,000 MSRP, and titled and registered in Colorado. An additional credit is available for compliant vehicles at a lower MSRP of $35,000 or less

The amount of credit you will receive depends on the tax year in which you acquired your vehicle and whether you purchased or leased.

Interestingly, the credit amount for the second half of 2023 and into 2024 is the highest it will probably be before this credit is set to expire in 2029 — up to $5,000. Meaning now is a great time to purchase your EV in Colorado if you've been on the fence! 

To make sure a vehicle you’re interested in qualifies and figure out how much your rebate may be, read this guide to the Innovative Motor Vehicle Credit from the Colorado Department of Revenue.

EV Charging station tax exemption

In addition to the tax break granted to new EV owners, House Bill 23-1233 from the Colorado General Assembly exempts electric vehicle chargers from personal property taxes between January 2023 and 2030.

EV emissions inspection exemption

For many counties in Colorado, gas and diesel vehicles must undergo emissions testing when being registered or sold. In addition, testing is then done on a regular basis, determined by the age of the vehicle.

However, state motor vehicle emissions checks are not required for vehicles that run only on electricity. Hybrids still require emissions testing, as do some alternative fuel vehicles (AFVs). 

Check out the chart on this Emissions page for more details.

Colorado utility company EV rebates & incentives

Looking for savings from your utility provider when it comes to owning and operating an electric vehicle?

Here, we’ll look at programs of some of the biggest utility companies throughout Colorado, ranging from a savings of $500 up to $3,000.

Xcel Energy EV, charging station and time-of-use savings

Xcel Energy in Colorado offers an EV Charger and Wiring Rebate for customers to reduce the costs associated with upgrading home writing and purchasing and installing an EV charger. 

This rebate can save up to $500 — or $1,300 for income-qualified customers.

To be eligible for this rebate, Xcel requires customers to enroll in their Optimize Your Charge program, which rewards EV drivers who charge up during off-peak hours with bill credits (and reduced rates). 

Xcel also offers an Electric Vehicle Rebate for income-qualified customers to get $3,000 back on a used or $5,500 back on a new EV — as long as it’s purchased or leased from a Colorado dealer.

At the time of this writing, Xcel defines income-qualified customers as those with a household income that meets any of these criteria:

  • Below 60% Colorado’s median income
  • Below 200% of the federal poverty level
  • Below 80% of the area (county) median income

Holy Cross Energy EV charging station incentives

As part of the Charge at Home initiative, Holy Cross Energy (HCE) provides up to two ChargePoint Home Level 2 EV chargers for residential customers. These customers can then either pay for the install up front or take a loan from HCE for install — which will be paid back over the next several years as part of their electric bill.

Gunnison County Electric Association EV rebate & test drive programs

The Used Electric Vehicle Purchase Rebate from Gunnison County Electric Association (GCEA) offers members 25% off the price (up to $1,000) of used EVs and 25% off the price (up to $500) of used plug-in hybrids. 

And since you’re going to need a way to charge your newly-purchased EV, they also have an EV Charger Rebate. 

This program pays members back 50% of the total cost of charger purchase and installation, up to $1,250. To take advantage of this rebate, members must be enrolled in their residential time-of-use (TOU) rate program. 

To learn more and apply for a rebate, visit the utility’s EV Rebates page.

In addition, GCEA has a creative EV Test Drive Program that allows members to test drive one of the EVs they own to figure out if going electric is right for them. 

Black Hills Energy residential EV charger & rate savings

Black Hills Energy in Colorado provides a $500 credit, per port, to residential customers who buy and install a level 2 EV charging station. This is expected to cover about half of the cost of getting your charger up and running. 

Residents with lower incomes are entitled to a reimbursement of up to $1,300. This rebate is meant to take care of most of the cost of getting an EV charger. 

When you take advantage of this rebate, you’re also enrolled in the company’s Residential Time-of-Day (RS-EV) rate program, in which customers can save money by charging their EVs and using electrical appliances at certain times of day.

San Isabel Electric Association EV & charger install rebate

During 2023, San Isabel Electric Association is providing a $500 rebate to customers who purchase a qualified electric vehicle. 

Additionally, during the same time frame a 50% rebate (up to $500) is available for the purchase and installation of a level 2 EV charger. 

To learn more about the incentives from San Isabel Electric Association, check out Electric Vehicle Offers & Information.

Federal electric vehicle & charger incentives

You don’t have to live in Colorado to take advantage of these savings. 

Per the Inflation Reduction Act of 2022 in the U.S., buyers of qualified EVs or plug-in hybrids are eligible to receive tax credits up to $7,500 in value. 

For new vehicles purchased or delivered in 2023, owners may earn a credit worth $2,500 to $7,500. Those purchased or delivered in 2022 and earlier may get a credit between $2,917 and $7,500. Credit amount depends on battery capacity.

For the purchase of a qualified used EV or hybrid, taxpayers can get a credit equal to 30% of the sale price, up to $4,000.

In addition, a home EV charging station that meets the requirements may be eligible for a tax credit up to 30% of the cost of the hardware and installation, up to $1,000. 

For more information on the qualifiers, eligible vehicles, and how to claim your credit, visit these IRS’s resources:

Time for hassle-free electric vehicle adoption

Purchasing an EV and wondering which incentives you’re eligible for, what kind of permit you need to install an EV charger, and how to connect with a qualified electrician? Kopperfield makes it easy to request a quote in a matter of minutes. 

A Kopperfield Certified Electrician will get back to you with everything you need to know about EV charger installation cost, permit requirements, and incentive eligibility.

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