Colorado electric vehicle tax credits, rebates and incentives

Under the Inflation Reduction Act of 2022, the Internal Revenue Service (IRS) offers taxpayers a Used Clean Vehicle Tax Credit equal to 30% of the sale price up to a maximum credit of $4,000 for the purchase of a used plug-in electric or hydrogen fuel cell vehicle. Beginning January 1, 2024, Clean Vehicle Tax Credits may be initiated and approved at the point of sale at participating dealerships registered with the IRS. Dealers will be responsible for submitting Clean Vehicle Tax Credit information to the IRS. Buyers are advised to obtain a copy of an IRS "time of sale" report, confirming it was submitted successfully by the dealer. Not every version of the vehicle models will necessarily qualify. Please check with the dealer/seller to determine the eligibility of your specific vehicle.

For the vehicle to qualify:

• Price cannot exceed $25,000.
• Need to verify the Vehicle Identification Number (VIN).
• Must be at least two model years older than the current calendar year in which the vehicle was purchased.
• Must be sold through a dealership, private sales not permitted.
• Not have already been transferred after August 16, 2022, to a qualified buyer.

For individuals to qualify:

• Must meet income eligibility, depending on modified adjusted gross income (AGI) and tax filing status.
• Must not be the first owner of the qualifying vehicle.
• Has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle.
• Purchased for personal use, not a business, corporation or for resale.

To learn more, visit https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

Funded by the Colorado Community Access Enterprise, the Vehicle Exchange Colorado (VXC) program offers $4,000 to income-eligible residents for the replacement of their old or high-emitting vehicles. Applicants with approval will receive this incentive at point-of-sale through participating authorized dealers for the purchase or lease of a qualified used Battery Electric Vehicle (BEV) or Plug-in Hybrid Electric Vehicle (PHEV). To qualify:

• Must complete a VXC rebate application and receive approval before rebates are issued.
• Income and household size must be below 80% of the area median income in an individual's county of residence.
• May qualify if showing proof of enrollment in eligible state or federal assistance programs.
• Final negotiated purchase price of used vehicle must be $50,000 or less.
• If leasing, lease term must be a minimum of two years.
• Model year of old or high-emitting gas or diesel vehicle must be at least 12 years old; if vehicle fails an emissions test in Colorado, no model year requirement.
• Vehicle must be currently titled and registered in Colorado without lien in the name of participant.
• Participant must be a Colorado resident, 18 years or older.
• Only one VXC rebate is allowed per tax household.

Additional information:

• Can be combined with Federal or State Tax Credits, but participant must verify combinability if applying for other EV offers for same vehicle purchase or lease.

For additional details and to apply, visit https://energyoffice.colorado.gov/vehicle-exchange-colorado

To qualify for this rebate, the customer and/or charging station must meet the following requirements:

• Receive electricity from Xcel Energy.
• Have purchased or leased an electric or plug-in hybrid vehicle.

Additional Information:


• Eligible customers can save up to $500. Income-Qualified customers can qualify for a $1,300 rebate.

To learn more, visit https://treehouse.pro/edmundsdiscount/