Colorado's EV State Tax Credits: A Fantastic Incentive for Buyers

Colorado has passed a new law that will provide a $5,000 tax credit for all residents who purchase or lease an EV with an MSRP up to $80,000 from July 1, 2023, until January 1, 2025. This is a significant increase from the current $2,000 state EV tax credit for new EV purchases. Additionally, from January 1, 2024, EVs under $35,000 MSRP will be eligible for an additional tax credit of $2,500. The new law will make EVs more affordable for Colorado residents, and a Tesla Model Y Long Range with Dual Motor All-Wheel Drive could receive a total tax credit of $12,500.