The state of Colorado offers one of the most aggressive incentives for plug-in electric vehicles in the country. The state offers a standard $5,000 tax credit 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, in 2021 to $2,500 for purchases/$1,500 for leases,and in 2023 to $2,000 for purchases/$1,500 for leases before expiring at the end of 2025. Converting a traditional gasoline vehicle to a plug-in electric is eligible for the same tax credits as EV purchases.
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)