Colorado offers up to $9,000 in incentives for EV buyers after federal tax credits cut

Coloradans who are affected by the ending of the federal EV tax credit in September can breathe a little sigh of relief as their state is coming to their rescue. The Centennial State has announced a bump of 50 percent on its existing EV incentives.

The Vehicle Exchange Colorado (VXC) program will increase its rebates on new EV purchases from $6,000 to $9,000, and on used or lease models from $4,000 to $6,000. According to an official release, the aim is to ensure e-mobility remains affordable for Colorado residents. The new incentives take effect for vehicles purchased or leased starting November 3.

The government noted that the federal and state stimulus packages have helped to put more than 200,000 EVs on Colorado roads, with zero-tailpipe emission automobiles accounting for 25 percent of new vehicle sales so far in 2025. The VXC stimulus started in 2023 and benefited more than 2,600 Coloradans.

Colorado aims to have one million EVs operating in the state by 2030.

The conditions for the VXC rebates, however, are stricter than those of the federal program. For example, drivers must trade in old high-polluting vehicles. They also have to earn below 80 percent of their county’s median income.