Colorado EV Rebates, Charging Incentives, and Tax Credits – Everything You Need to Know

​Colorado residents have access to a variety of financial incentives aimed at promoting energy efficiency and the adoption of electric vehicles (EVs). These incentives, available through federal programs, state initiatives, and local utility offerings, can significantly reduce the cost of home electrification projects and EV ownership including installing a level 2 EV charger at home.

In this guide, we’ll take a closer look at Colorado EV rebates, charging incentives, and tax credits available to optimize your EV driving experience and maximize savings.

Colorado EV Rebates and Tax Credits - State Tax Credit

If you're considering buying or leasing an electric vehicle, Colorado offers generous state tax credits. For new EVs or PHEVs with a sticker price (MSRP) of $80,000 or less, you can receive a state tax credit worth $5,000. Leasing an EV for at least two years also qualifies you for this credit.

Even better, if the electric vehicle you choose costs less than $35,000, Colorado adds an extra $2,500 to the state tax credit—boosting your savings up to $7,500 total.

This credit can either be applied immediately at the dealership to reduce your upfront purchase cost or claimed later when you file your Colorado state taxes.

Colorado EV Rebates and Tax Credits - Vehicle Exchange Credit

Colorado also helps residents retire older, high-emission vehicles in favor of cleaner electric cars through the Vehicle Exchange Colorado Program.

To qualify:

• Your existing vehicle must be at least 12 years old or fail a Colorado emissions test.
• Your household income can't exceed 80% of your county's median income.

Eligible residents can receive up to $6,000 toward the purchase or lease of a new EV or plug-in hybrid, or up to $4,000 toward a used EV or PHEV. New vehicle pricing must not exceed an MSRP of $80,000, while used vehicles must cost less than $50,000.

Federal EV Tax Credits

Alongside state credits, Colorado residents can take advantage of federal incentives:

• New EV buyers could qualify for the Clean Vehicle Tax Credit, worth up to $7,500.
• Buyers of used EVs might qualify for a credit of up to $4,000.

These credits depend on income limits, battery sourcing, and critical mineral requirements. Always check with a CPA or tax professional to confirm eligibility.

Colorado Utility Rebates for EV Purchases

Several Colorado utilities offer rebates:

• Black Hills Energy: Up to $2,500 for new or used EV/PHEV purchases under $50,000 (income conditions apply).
• Xcel Energy: Offered income-based rebates ($5,500 for new, $3,000 for used EVs) but currently out of funds as of November 2024.
• San Isabel Electric Association: $500 rebate on new EV purchases.
• Gunnison County Electric Association: $1,000 rebate on new EVs and PHEVs, and up to $1,000 for used EVs (or 25% of purchase price for PHEVs).

Colorado EV Charging Incentives - Rebates

Utilities across Colorado provide rebates for home EV charger installations, helping lower the cost of Level 2 chargers:

• Holy Cross Energy: Offers a $549 rebate on approved charger models.
• Xcel Energy: Provides rebates from $500 up to $1,300 depending on income.
• Black Hills Energy: Rebates up to $1,300 (income-qualified) or $500 for standard installation.
• Mountain Parks Electric: Covers 50% of purchase/installation up to $1,000.

Colorado EV Charging Incentives - Electricity Rates

Many Colorado utilities provide discounted Time-of-Use (TOU) rates for EV charging:

• Xcel Energy: Off-peak rates as low as $0.12 per kWh.
• Black Hills Energy: Low fixed monthly rates for home EV charging.
• Gunnison County Electric: Off-peak rates around $0.09 per kWh.

Check out this resource for more on how to save when charging your EV.

Home Electrification Incentives

Colorado residents looking to further electrify their homes can access substantial incentives for battery storage, solar installations, heat pumps, and electrical panel upgrades:

• Battery Storage: Up to $500 per kW from Xcel Energy and Holy Cross Energy.
• Electrical Panel Upgrades: 30% federal tax credit (25C), capped at $600. Learn more about electrical panel upgrades and cost to upgrade when bringing level 2 charging to your home.
• Heat Pumps & Water Heaters: 30% tax credit capped at $2,000.
• Solar Panels: Federal 25D tax credit of 30%, with additional incentives available through local utilities.

Expert EV Charging Installation in Colorado – ChargerPro

As EV adoption continues to grow and with Colorado ev rebates and charging incentives readily available, there is no better time to own an EV and bring level 2 charging to your home.

If you’re ready to bring charging to your home, ChargerPro is here to help. We offer expert level 2 charging installation by licensed electricians. Learn more today!