Colorado Innovative Motor Vehicle Credit

The state of Colorado offers a slew of electric vehicle rebate programs. These are in addition to the federal EV tax credit, which currently stands at $7,500. Combined, these two credits make owning an EV in the Centennial State more affordable than ever. However, traditional auto lenders don’t consider these rebates when you apply for a loan to buy or lease an EV. That’s where EV Life comes in with our EV Climate Loan.

This new credit, which is available for both new and used EVs, can be claimed on a state income tax return or transferred to the dealer to lower the cost of the car at the point of sale. The IRS also recently modified the credit by removing the manufacturer limitations that were in place. This means that many vehicles that didn’t qualify for the credit in 2022 due to battery and critical mineral requirements could qualify in 2023.

To be eligible for Colorado Innovative Motor Vehicle Credit, you must be a Colorado resident and meet income limits of $150,000 for single buyers or $300,000 for those filing jointly. You must also complete the required forms and consult a tax professional for guidance. Luckily, the EV models at Bob Penkhus Volkswagen all qualify for this credit. For more information, visit the Colorado Department of Revenue or consult a tax specialist.

Colorado State Innovative EV Incentives

A new Colorado state incentive is coming that should help to make electric vehicles even more affordable. The state is set to launch the Vehicle Exchange Colorado Program next month, with an aim to incentivize income-qualified Coloradans to swap out their older, high-emitting guzzlers for a brand-new electric car or truck that qualifies for the full federal tax credit. The new state incentive essentially doubles the amount of money you can get back when you purchase a Chevrolet Bolt or Tesla Model 3.

The Colorado EV credits are refundable, which means that if your credit is larger than the amount of taxes you owe, you should receive the excess via a check from the state revenue office. You can claim the credit on your personal income tax return filed the year after you purchased a qualifying EV. Consulting with a tax professional is a good idea if you are unsure if you qualify or have questions about the requirements.

The state’s EV incentives apply to both new and used electric cars and trucks as long as they meet certain minimum battery requirements and manufacturers suggested retail price (MSRP) caps. They also have to be plugged in and registered in the state of Colorado. Buyers and lessees must also meet income limits for the rebate, which are based on filing status.