Colorado is a pretty great state to live in, especially if you’re in the market for an electric vehicle or e-bike! In the past month our state has announced tantalizingly generous incentives for both technologies.
Effective July 1, the state tax credit for the purchase or lease of a qualifying electric or plug-in hybrid electric vehicle increases to $5,000 – up from $1,500-2,000 (depending on whether you were leasing or purchasing). This applies to vehicles with a manufacturer’s suggested retail price (MSRP) of $80,000 or less.
Even better, starting on Jan. 1, 2024, qualifying EVs with an MSRP of $35,000 or less will be eligible for an additional $2,500 tax credit.
The cherry on top? These are refundable tax credits, which means you’ll get the full amount as a refund even if you don’t owe that much in state income tax. Plus, they’re stackable, meaning that you can claim them in addition to the federal tax credit. For full details, see the EV CO website.
Coming in August: e-bike rebates up to $1,100
Didn’t get in on our eBikeThere program? The Colorado Energy Office is set to launch a new e-bike rebate program in August that’s expected to be the biggest in the country outside of California.
Colorado residents who earn less than 80% of their county’s area median income (AMI) will qualify for a voucher worth $1,100 off a new e-bike, redeemable at local bike shops. In Garfield County, the income cap equates to $55,550 for a single person and $79,350 for a family of four.
Those who earn 80-100% of the AMI – that’s $69,500 for a single person and $99,200 for a family of four in Garfield County – will be able to get a $500 discount.
The discount increases by $300 for a cargo e-bike and $250 for an adaptive e-bike, plus you can get up to $100 extra to buy a helmet and/or a lock.
Funding is limited and the program is expected to be quite popular, so awards may have to be made through a lottery system. [Update 8/29/23: The program is accepting applications only during certain periods - apparently around the middle of each month.] For details and to sign up for email updates, see the Colorado Energy Office website.
If you don’t meet the income requirements, just wait till next spring when the state is expected to start offering a $450 tax credit on e-bikes for residents at any income level.