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Colorado’s Electric Vehicle state tax credit has doubled, granting up to $5,000 to new buyers

COLORADO (KRDO0 -- If you're looking to buy a new car, there may be more reason to consider going electric in Colorado.

Effective in July, the state's electric vehicle tax credit has doubled for prospective buyers, from $2,500 to $5,000 - provided the vehicle costs less than $80,000. The increase makes it the highest state tax rebate in the country.

The demand for EVs has trended upward in Colorado for the last few years, with data showing that in 2022, battery-only and hybrid vehicles accounted for 10.5% of all vehicle sales in the state, a 4% increase from 2021.

In addition to the new $5,000 rebate, prospective buyers can also utilize the $7500 federal rebate, for a potential total of $12,500 to take home in taxes.

Phil Long Ford in Colorado Springs, says that the supply for EVs has finally caught up to their demand, and they project more and more drivers to go electric within the next decade. 

"We don't have a lot on the lot. They don't last long. The demand is still really high. We have seen less orders now because we're getting more, you know, allocation in the store, more retail units." explains Adam Kaye, the E-Commerce Director at Phil Long Ford of Chapel Hills.

Ford joined the likes of Tesla, Jeep, and Nissan when they began selling EVs in 2021, helping put more than 83,000 energy-efficient vehicles on the road to date in the state, from plug-in hybrid models, to fully electric.

To begin your search for an EV, you can click here.

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Tyler Cunnington

Tyler is a reporter for KRDO. Learn more about him here.


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