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Electric Vehicle Tax Credits

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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.
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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.

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Federal Tax Credits

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