As other incentives expire, Coloradans have a new way to save money on electric vehicles.
Gov. Jared Polis on Monday celebrated an expansion of the state’s electric vehicle incentives.
Vehicle Exchange Colorado offers rebates for income-qualified residents to trade in gas-powered cars.
Those rebates increased from $6,000 to $9,000 for new EVs and $4,000 to $6,000 for used EV purchases and leases as of Nov. 3.
In order to qualify, drivers have to make below 80% of their Area Median Income or be enrolled in any of a long list of financial aid programs.
Tim Karfs works on sustainability programs for the City of Aspen, and he’s excited about the new incentives, because getting more people to switch to EVs has an outsized climate impact compared to other communities.
About half the city gets power from Aspen Electric, which has been 100% renewable since 2015. The other half comes from Holy Cross, which expects to average 85% renewable this year.
Therefore, charging EVs in Aspen creates virtually no greenhouse gas emissions.
“Increasing this rebate amount for qualified individuals really helps to reduce the upfront costs of electric vehicle purchase,” Karfs said. “And so ultimately, [it] lowers barriers to go electric, especially in light of EV tax credits disappearing at the federal level and reducing in other ways at the state level.”
Colorado currently offers a $6,000 tax credit for new EVs, which includes a $3,500 base credit and an additional $2,500 for cars that cost less than $35,000. But on Jan. 1, that base credit will drop from $3,500 to $750.
The federal government had offered a $7,500 credit, but this summer’s Big Beautiful Bill phased that out on Sept. 30.
Karfs said while the state’s vehicle exchange program has a more confined impact than general tax credits, he thinks it can help certain people.
“This would be great for a senior who has had a car for a long time and is thinking about the next option,” Karfs said.
Charging is still a leading barrier to electrification, Karfs said, so the city is continuing to expand its charging network with help from state incentives.
“A lot of people who live in multi-family housing complexes don't have access to charging, and so there's incentives through CORE which can help support that,” Karfs said.
The Community Office for Resource Efficiency, or CORE, is a Basalt-based organization that provides financial assistance to electrify homes and businesses.
Karfs said Aspen is aiming to build 35 to 45 EV charging ports by the end of next year.
