The state of Colorado offers one of the most aggressive incentives for plug-in electric vehicles in the country. Through the end of 2016, the state offers up to a $6,000 tax credit for the purchase of a new light-duty EV based on battery size. But beginning in 2017, the tax credit becomes a standard $5,000 for all light-duty EVs and can be applied at the time of purchase by assigning the tax credit to a financing entity. A $2,500 instant tax credit can also be applied to 2-year minimum leases of new EVs.
EV tax credits decrease in 2020 to $4,000 for purchases/$2,000 for leases and in 2021 to $2,500 for purchases/$1,500 for leases. Converting a traditional gasoline vehicle to a plug-in electric is eligible for the same tax credits as EV purchases.
In Colorado, outreach on alternative fuels and incentives is conducted by Northern Colorado Clean Cities, Southern Colorado Clean Cities, and Denver Metro Clean Cities. NCCC also is promoting a new 65% discount for Nissan Leafs through a partnership with Drive Electric Northern Colorado. Read more about NCCC’s work here.
Overall, costs and benefits of EVs compared to gasoline vehicles include:
- Fewer dedicated fueling stations
- Need to fuel more often
- Potential battery replacement
- Potential home fueling station
- Lower fuel cost
- Long battery warranties
- Reduced maintenance
- Zero tailpipe emissions
- Reduced total emissions (even after factoring in electric grid emissions)