Colorado is increasing its rebates for the purchase of electric vehicles beginning in November to offset the loss of a federal tax credit. Gov. Jared Polis announced Thursday, Oct. 2, that rebates will increase to $9,000 from $6,000 for new EV purchases and leases and $6,000 from $4,000 for used electric vehicle purchases.
“The market has made it clear, EVs are here to stay. Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost. I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: get out there right now,” said Polis.
Electric vehicle use has been growing in the state, with 2025 sales up 19.3 percent through June, according to the Colorado Automobile Dealers Association. The trade association reported 16,149 new electric vehicle registrations from certified dealers through the second quarter of 2025.
“Transportation is a leading source of emissions in Colorado, making widespread EV adoption essential to achieve our climate goals,” said Colorado Energy Office Executive Director Will Toor. “Coloradans have made it clear that they want EVs, and with Congress revoking key incentives that save Coloradans money, we are stepping up. These increased incentives will help ensure EVs stay affordable in Colorado as we work toward nearly 1 million EVs on our roads by 2030.”
Coloradans can apply for the electric vehicle tax credit through the Vehicle Exchange Colorado program. VXC rebates are available for income-qualified Coloradans exchanging a qualified old or high-emitting vehicle to purchase or lease an EV, which includes both battery electric and plug-in hybrid electric vehicles.