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Federal Electric Vehicle Tax Credits
Up to $7,500 tax credit
Lease credit goes to leasing company ? may lower lease cost
Phase out begins when 200,000 sold by manufacturer
Tesla & GM ? no longer eligible
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Colorado Tax Credits
$2,500 credit received with state income tax refund ? may be applied at purchase with many electric vehicle manufacturers
$1,500 for 2-year minimum leases
Unused tax credit can be rolled forward to future years
Colorado residents are able to claim an additional state tax credit of $2,500 when they buy an electric vehicle. Some dealers offer this at point of sale.
The credits decrease every few years from $2,500 during January 2021 ? 2023 to $2,000 from 2023-2026.
For leases: $1,500 between 2021 to 2026.
For tax years January 1, 2010 ? January 1, 2022, the credits are refundable. The credit is first applied against the income tax liability of the person who purchases, leases, or converts the qualifying motor vehicle.