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.

Examples of electric vehicles include the Chevy Bolt, Mustang Mach-E, Tesla Model 3, Kia Niro EV, Nissan LEAF, Hyundai Kona EV, Audi e-tron, Rivian R1T, Porsche Taycan, and Jaguar I-Pace. 

Examples of plug-in hybrid electric vehicles include Mitsubishi Outlander PHEV, Toyota Prius Prime, Toyota RAV-4 Prime, Volvo XC60 PHEV, BMW 330e, Jeep 4xe, Chrysler Pacifica PHEV, Ford Fusion Energi, Honda Clarity PHEV, and Subaru Crosstrek PHEV. 

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?

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

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.