As Colorado ramps up its efforts to transition more drivers to electric vehicles (EVs), the state offers a variety of incentives for 2025 to make EV ownership more accessible and affordable. Whether you’re looking to purchase a new or used electric vehicle, trade in an older model, or install an EV charger at your home or business, there are multiple programs available to help you save money.
1. Colorado State EV Tax Credit
For 2025, Colorado is offering a $5,000 state tax credit for the purchase or lease of a new EV or plug-in hybrid electric vehicle (PHEV) with an MSRP under $80,000. This state tax credit is designed to stack with the federal incentive, which can offer an additional $7,500. Together, Colorado drivers can potentially save up to $12,500 on qualifying EVs. The Colorado tax credit is refundable, which means if your credit exceeds your state tax liability, you will receive the remaining amount as a cash refund, making it more accessible for all residents.
2. Vehicle Exchange Colorado (VXC) Program
The VXC Program is a targeted incentive for Colorado residents looking to replace their old, high-emission vehicles with new electric models. Eligible participants can receive:
– $6,000 off a new battery electric vehicle (BEV) or PHEV
– $4,000 off a used BEV or PHEV
To qualify, the trade-in vehicle must be at least 12 years old or have failed an emissions test. The goal of the VXC Program is to reduce emissions by encouraging the replacement of older, less efficient vehicles with cleaner, modern alternatives.
3. Utility Rebates for EV Owners
In addition to state and federal tax credits, Colorado’s utility companies, such as Xcel Energy, offer rebates for income-qualified individuals. Residents meeting certain income criteria (e.g., enrollment in programs like LEAP or SNAP) may receive up to $5,500 as a rebate when they purchase or lease a new EV from a participating dealership. These rebates are designed to provide upfront savings and are available as point-of-sale discounts for qualified applicants.
4. Incentives for EV Charging Equipment
For Colorado residents and businesses installing EV chargers, there are additional incentives to help cover the cost:
– Homeowners: Residents can receive a tax credit of up to $1,000 or 30% of the cost of installing an EV charging unit, whichever is lower.
– Commercial Installations: Businesses installing EV chargers may qualify for credits up to $100,000 or 6% of the installation cost, provided the equipment is placed in low-income or non-urban areas.
These incentives are part of Colorado’s broader strategy to expand EV infrastructure and make charging more convenient for both homeowners and businesses.
How to Take Advantage of These Incentives
If you’re a Colorado resident looking to purchase an EV or install charging equipment, EV Plug Pros is here to help. We specialize in EV charger installations for homes and businesses, ensuring that you not only get the right equipment but also maximize available incentives. Our team can guide you through the rebate and tax credit process, ensuring you take full advantage of these savings opportunities.
Ready to make the switch to electric and take advantage of Colorado’s EV incentives? Contact EV Plug Pros today to learn more about how we can help with your EV charging needs.