Colorado Increases EV Rebates Up to $9,000 After Federal Credits Expire

In response to the expiration of federal electric vehicle (EV) tax credits on September 30, 2025, Colorado has increased its state-level EV incentives through the Vehicle Exchange Colorado (VXC) program, effective November 3. The rebates for income-qualified buyers have risen to $9,000 for new EV purchases and leases, and $6,000 for used EVs, aiming to maintain EV affordability and support the state's climate goals amid the federal incentive rollback under President Donald Trump's administration. Governor Jared Polis and Colorado Energy Office Executive Director Will Toor emphasized the importance of EV adoption for reducing transportation emissions and highlighted Colorado's leadership with over 200,000 registered EVs and a quarter of new vehicle sales being electric in 2025. The VXC program specifically targets residents making less than 80% of their area's median income who trade in older, high-emission vehicles, with funding sourced from fees on rideshare and delivery services rather than the state's general fund. The program has already helped over 2,700 Coloradans switch to cleaner vehicles since its launch in 2023, with a goal of nearly one million EVs on Colorado roads by 2030. Despite ongoing state budget challenges, the EV rebate program is expected to continue through 2032, potentially adjusting to market conditions and demand.