• Business Business

Incentive programs could allow state residents to score a new EV for as low as $5,500 — here's how

Governments around the world are exploring ways to make EVs more accessible.

Governments around the world are exploring ways to make EVs more accessible.

Photo Credit: iStock

The cost of electric vehicles has hindered some drivers from being able to make the switch from gas-powered vehicles, but Colorado residents could have a more accessible path toward doing so thanks to newly introduced incentive programs.

As explained in The Denver Post, these incentive programs can facilitate the purchase of an electric vehicle for as little as $5,500. Two Teslas and two Chevrolets qualify for the three incentive programs that were introduced Jan. 1, each with its own set of complexities. 

Colorado residents who have a modified adjusted gross income of less than $150,000 for individuals or $300,000 for married joint filers fall below the income limits for the $7,500 federal electric vehicle tax credit, which is fully redeemable at the point of sale even for those who don't pay $7,500 in federal income taxes. A partial credit of $3,500 is also available for vehicles that meet partial criteria, and FuelEconomy.gov has a complete list of vehicles that qualify for the incentives.

Colorado is also offering up to an additional $7,500 in state tax credits that will be fully redeemable and immediately available for buyers at the time of the purchase from dealers who go through the proper federal channels. The credit was originally $5,000 for vehicles that cost less than $80,000, but an additional $2,500 was incorporated at the beginning of the year for vehicles that cost less than $35,000.

Lastly, Colorado residents who own a vehicle that is at least 12 years old and make less than 80% of their area median income qualify for a $6,000 rebate as part of the Vehicle Exchange Colorado Program if they trade in their vehicle.

Qualifying for just one of these incentives would make electric vehicles nearly as affordable as their gas-powered counterparts. Also, Xcel Energy is offering a $1,300 rebate for installing an EV charger and a $5,500 electric vehicle credit for low-income buyers, depending on how their taxes are structured. The $5,500 credit can be used with the federal credit and vehicle exchange program but not with the state's tax credit.

Those who qualify for all three incentives would be able to purchase a 2024 Chevy Bolt EV that costs $26,500 for just $5,500. A Chevy Bolt EUV model that starts at $27,800 can be had for $6,800. A Tesla Model 3 basic rear-wheel drive version with a manufacturer's suggested retail price of $35,000 would be knocked down to $14,000. A base-model Tesla Y with an MSRP of $44,000 would cost $23,000.

Switching to electric vehicles is one of the best ways to reduce harmful carbon pollution, and governments around the world are exploring ways to make them more accessible. For example, France recently launched a new "social leasing" program for drivers to lease EVs for as little as about $43 a month.

Join our free newsletter for cool news and actionable info that makes it easy to help yourself while helping the planet.

Cool Divider