Colorado is providing residents with an additional $6,000 rebate through the Vehicle Exchange Colorado Program for choosing to drive new electric vehicles (EVs). Colorado’s $6K EV rebate program began on August 31.
Applicants can receive rebates of up to $6,000 for new vehicles and up to $4,000 for used ones.
To be eligible for the program, drivers are required to return their old gasoline cars. The gasoline cars must be at least 12 years old, unless they have failed emissions tests.
One of the advantages of these Colorado rebates is that they can be combined with federal programs. A Coloradan who qualifies for the $6,000 rebate can also receive the $7,500 EV tax credit provided through the Inflation Reduction Act. This leads to a total savings of $13,500.
According to Yahoo News, Colorado aims to have nearly 1 million electric cars on the road by 2030. As of now, it only has around 90,000.
To qualify for the program, certain income-related criteria must be met. The household income should be below 80 percent of the area’s median income. This ensures that the program is primarily targeted towards lower-income individuals rather than those who can already afford EVs.
For example, residents of Boulder, Colorado, in four-person households must have an income of less than $106,240 to be eligible for the rebate. Detailed parameters specific to each county can be found here.
Additionally, the cost of the EV after all rebates and discounts cannot exceed $50,000.
With the new rebates, Colorado is offering the most generous state-level EV incentives in the nation. A Tesla Model Y in Colorado can cost as little as $31,490, less than in any other state. The Tesla Model Y is the best-selling EV in the United States.
EV rebates are a proven way of boosting EV ownership and thereby fighting climate change. A 2018 study found that for every $1,000 increase in EV rebates offered, EV sales go up by 2.6%.
Colorado is also subsidizing other forms of climate-friendly transportation. In August, the state began offering $450 rebates to residents who purchased e-bikes.
Image Source: Electrify America