Electric Vehicle Tax Credits


Note: The Colorado Energy Office cannot provide any tax-related advice.

Questions about the Colorado Electric Vehicle Tax Credit? Contact the Colorado Department of Revenue at 303-238-7378.

Tax credits are available in Colorado for the purchase or lease of new electric vehicles and plug-in hybrid electric vehicles. 

Colorado taxpayers are eligible for a state tax credit of $5,000 for the purchase or lease of a new EV on or after July 1, 2023 with a manufacturer’s suggested retail price (MSRP) up to $80,000. Lease agreements must have an initial term of at least two years. Beginning January 1, 2024, Coloradans purchasing an EV with an MSRP up to $35,000 will be eligible for an additional $2,500 tax credit.

For a list of fully electric and plug-in hybrid electric vehicles, please visit the Alternative Fuels Data Center’s Alternative Fuel and Advanced Vehicle Search.

A close-up of an electric vehicle's charging port plugged in to charge.

Learn more about the Innovative Motor Vehicle Credit for EVs in the Colorado Department of Revenue document linked below, including answers to the following questions:

  • Am I still eligible for the tax credit if I purchase a new electric vehicle outside of Colorado?
  • How do I know if the vehicle I want to purchase is eligible for the tax credit?
  • How do I claim the credit?
  • If I buy more than one vehicle, can I get the credit for each vehicle?
  • How much is the credit for?
  • How can the credit be assigned at point of sale to a financing entity?
  • Does the credit apply to used electric vehicles?

Department of Revenue: Innovative Motor Vehicle Tax Credit Information

Tax credits are also available for light-, medium- and heavy-duty electric (including hydrogen) trucks:

Learn more about the Innovative Truck Credit

Please direct questions to the Colorado Department of Revenue at 303-238-7378.


Federal Tax Credits

For information about federal tax credits for clean vehicles, please visit the IRS website.