Colorado boosts EV rebates as federal incentives end

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(The Center Square) – As national incentives for electric vehicles end, Colorado has decided to jump in and offer its own incentives.

Last week, Gov. Jared Polis announced an increase in Colorado’s point-of-sale electric vehicle rebates.

“The market has made it clear: EVs are here to stay. Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost,” Polis said. “I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: Get out there right now.”

Starting Nov. 3, rebates will increase from $6,000 to $9,000 for new EV purchases and leases and $4,000 to $6,000 for used EV purchases and leases.

These rebates are all through the Vehicle Exchange Colorado program, which is designed to assist income-qualified Coloradans “recycle and replace their old or high-emitting vehicles” with EVs. When the program launched in 2023, it received $25.6 million in funding from the Colorado Energy Office for its first three years. Polis’ office said it anticipates it will also receive ongoing funding through 2032.

To meet eligibility criteria, the buyer must have a household income below 80% of the area median income in the county where the resident lives. In the past two years, just over 2,700 Coloradans have taken advantage of the credits.

The state hopes this will continue to incentivize Coloradans to buy electric vehicles.

“Transportation is a leading source of emissions in Colorado, making widespread EV adoption essential to achieve our climate goals,” said Colorado Energy Office Executive Director Will Toor. “Coloradans have made it clear that they want EVs, and with Congress revoking key incentives that save Coloradans money, we are stepping up. These increased incentives will help ensure EVs stay affordable in Colorado as we work toward nearly 1 million EVs on our roads by 2030.”

This comes even as market experts anticipate a decline in EV sales, as previously reported by The Center Square.

While electric vehicles and hybrid car sales were up throughout the beginning of this year, experts do not expect this upward trend to continue.

“With credits disappearing and shrinking, we expected a sharp downturn in these numbers,” said the Colorado Automobile Dealers Association CEO Matthew Groves. It is unclear how Colorado increasing rebates might affect that prediction.

Longterm, the state hopes that light-duty electric vehicles will make up “nearly 100%” of the market share by 2050.

“The state envisions the large-scale transition of Colorado’s transportation system to zero emission vehicles,” said Colorado’s 2023 Electric Vehicle Plan.

This includes 940,000 electric vehicles on Colorado roads by 2030, as explained previously by Toor.

“By doing so, Colorado could see significant environmental benefits that include emissions reductions from transportation, the largest source of greenhouse gas emissions (GHG) in the state,” the state said.

Currently Colorado has more than 200,000 registered EVs, according to Atlas Public Policy. That means, to meet the 2030 goal, the state would have to average 147,000 additional electric vehicles per year.