Electric Vehicle (EV) & Plug-in-Hybrid Electric Vehicle (PHEV) Tax Credits & Rebates
(plus other EV-related information)
(plus other EV-related information)
> Types: EVs, PHEVs, electric commuter bikes/motorcycles. EVs and PHEVs may qualify for all three rebates - federal, state, and local (SMPA) - if they meet designated criteria (see below). In addition, SMPA offers rebates for commuter bikes and motorcycles.
> General info on incentives/rebates - which 2023 EVs & PHEVs qualify A nice review: The Best Electric Vehicles on the Market in 2023 and 2024 also gives information on which vehicles now qualify for Federal rebates.
> New vehicle Federal EV/PHEV rebate information. The availability of the credit depends on a number of factors, including the vehicle's MSRP (< $80,000 for vans, sport utility vehicles and pickup trucks, < $55,000 for other vehicles), its construction (both final assembly in N. America and site of critical mineral sourcing), its vehicle weight (< 14,000 lbs), and your modified adjusted gross income (AGI). The federal EV credit is not available to taxpayers whose modified adjusted gross income exceeds $150,000 ($300,000 for married couples filing jointly. For PHEVs, the size of the battery (7 kWh or more) is also critical in qualifying for a credit. The US DOE has more information on qualifying EV vehicles here. For businesses, there is also a Federal Commercial Clean Energy Tax Credit which provides a larger rebate for vehicles over 14,000 pounds.
> Used vehicle Federal EV rebate information. Vehicle must be purchased from a dealer, have a sale price of $25,000 or less, and other criteria apply. This federal used vehicle EV credit is not available to taxpayers whose modified adjusted gross income exceeds $75,000 ($150,000 for married couples filing jointly).
> Leased vehicle Federal EV rebate loophole. How to bypass nearly every restriction of the EV tax credit by leasing. EV leases are also eligible for the $7,500 EV tax credit and leased vehicles are not required to meet the sourcing qualifications listed above for EV purchases. That said, because the vehicle is still owned by the dealership, you must ask the dealer to pass along the EV tax credit to you in the form of a rebate or reduction in sales price. Most dealerships will pass along this cost savings to their customers, so don’t hesitate to ask if you are interested in an EV lease. Leasing vs. Buying an Electric Car in 2023 might provide you some additional perspective, listing some pros and cons.
> Colorado new vehicle EV rebate information. This is the EV CO webpage: Learn About Driving Electric in CO. If you pay taxes in Colorado and purchase or lease a new EV with an MSRP up to $80,000, you’re eligible for a state tax credit of $5,000. Lease agreements must have an initial term of at least two years. Beginning January 1, 2024, EVs with an MSRP up to $35,000 will be eligible for an additional tax credit of $2,500. (So, to qualify for the CO rebates, there are limits on the cost of the car but not on your income or where the car was manufactured.) CO also has a superb website with both CO and Federal tax rebate information. Here is another website that has both Colorado and Federal EV rebate information.
> Local SMPA rebates on EVs, electric commuter bikes/motorcycles. Additionally, sometimes there have been and in the future there again may be State of CO e-bike rebates for income qualifed CO residents: $500 if making between 80-100% of their county areas median income (AMI) and $1100 if making less than 80% of their AMI. These have only been available for applicants during certain windows of time. There are limits on e-bike motor size and the bike cannot have full suspension.
> Colorado 2023 Electric Vehicle Plan
> General info on incentives/rebates - which 2023 EVs & PHEVs qualify A nice review: The Best Electric Vehicles on the Market in 2023 and 2024 also gives information on which vehicles now qualify for Federal rebates.
> New vehicle Federal EV/PHEV rebate information. The availability of the credit depends on a number of factors, including the vehicle's MSRP (< $80,000 for vans, sport utility vehicles and pickup trucks, < $55,000 for other vehicles), its construction (both final assembly in N. America and site of critical mineral sourcing), its vehicle weight (< 14,000 lbs), and your modified adjusted gross income (AGI). The federal EV credit is not available to taxpayers whose modified adjusted gross income exceeds $150,000 ($300,000 for married couples filing jointly. For PHEVs, the size of the battery (7 kWh or more) is also critical in qualifying for a credit. The US DOE has more information on qualifying EV vehicles here. For businesses, there is also a Federal Commercial Clean Energy Tax Credit which provides a larger rebate for vehicles over 14,000 pounds.
> Used vehicle Federal EV rebate information. Vehicle must be purchased from a dealer, have a sale price of $25,000 or less, and other criteria apply. This federal used vehicle EV credit is not available to taxpayers whose modified adjusted gross income exceeds $75,000 ($150,000 for married couples filing jointly).
> Leased vehicle Federal EV rebate loophole. How to bypass nearly every restriction of the EV tax credit by leasing. EV leases are also eligible for the $7,500 EV tax credit and leased vehicles are not required to meet the sourcing qualifications listed above for EV purchases. That said, because the vehicle is still owned by the dealership, you must ask the dealer to pass along the EV tax credit to you in the form of a rebate or reduction in sales price. Most dealerships will pass along this cost savings to their customers, so don’t hesitate to ask if you are interested in an EV lease. Leasing vs. Buying an Electric Car in 2023 might provide you some additional perspective, listing some pros and cons.
> Colorado new vehicle EV rebate information. This is the EV CO webpage: Learn About Driving Electric in CO. If you pay taxes in Colorado and purchase or lease a new EV with an MSRP up to $80,000, you’re eligible for a state tax credit of $5,000. Lease agreements must have an initial term of at least two years. Beginning January 1, 2024, EVs with an MSRP up to $35,000 will be eligible for an additional tax credit of $2,500. (So, to qualify for the CO rebates, there are limits on the cost of the car but not on your income or where the car was manufactured.) CO also has a superb website with both CO and Federal tax rebate information. Here is another website that has both Colorado and Federal EV rebate information.
> Local SMPA rebates on EVs, electric commuter bikes/motorcycles. Additionally, sometimes there have been and in the future there again may be State of CO e-bike rebates for income qualifed CO residents: $500 if making between 80-100% of their county areas median income (AMI) and $1100 if making less than 80% of their AMI. These have only been available for applicants during certain windows of time. There are limits on e-bike motor size and the bike cannot have full suspension.
> Colorado 2023 Electric Vehicle Plan
Electric Vehicle Charging Station Locations (US & Canada)
This government database gives great information on North American charging stations. There are also multiple free cell-phone apps that give such information including PlugShare, ChargePoint, SmartHub, AlternativeFuelingStations, and others. The Tesla app has its own charger network.
Home EV/PHEV Charger tax credits and rebates
Some EV and especially PHEV owners just charge at home through a 120 volt outlet. However, such "level 1" charging is very slow. A "level 2" charger is a 240 volt outlet and generally provides 3-5 times faster (25-30 miles/hour) as well as more efficient charging. CleanTechnica provides a good overview of charger types and their features. While traveling, level 3 "superchargers" are generally necessary to avoiding overnight stays connected to a level 2 charger.
> Federal tax credit on EV/PHEV chargers. This is a nice summary on the 30% (up to $1000) federal EV charger rebate. (To claim the credit, EV drivers must file Form 8911 with the IRS. You don't get the credit automatically when you purchase an EV charger — you must submit income and state information when you file taxes to benefit. It is also important to remember that the credit is not cash you receive.)
> SMPA rebates on home EV charging infrastructure.
> Federal tax credit on EV/PHEV chargers. This is a nice summary on the 30% (up to $1000) federal EV charger rebate. (To claim the credit, EV drivers must file Form 8911 with the IRS. You don't get the credit automatically when you purchase an EV charger — you must submit income and state information when you file taxes to benefit. It is also important to remember that the credit is not cash you receive.)
> SMPA rebates on home EV charging infrastructure.
Purchasing or leasing EVs or PHEVs: Other Considerations
> How to Choose and Buy an Electric Vehicle from U.S. News provides some good information to consider like where to charge, range, & cost considerations.
PHEVs can combat range anxiety, provide peppy acceleration, and often offer an increase in miles-per-gallon, but they also offer a limited range in all-electric mode and still require oil changes and other gas-engine maintenance/repairs.
Electric vs. Gas Cars: Is It Cheaper to Drive an EV?
Economics continue to change as gas prices go up and down, more EVs hit the market, EV prices fall, and buyer incentives/rebates are considered. In general, home charging costs are about 50% less than buying gasoline and EV maintenance and repair costs are also about 40-50% lower. Consumer Reports Study Finds Electric Vehicle Maintenance Costs Are 50% Less Than Gas-Powered Cars
Charging Concerns: Electric cars have a road trip problem: slow and unreliable charging : NPR While those who can charge at home or work and do mainly local driving have few issues with charging, this article nicely highlights current issues confronting those taking frequent "road trips" in EV vehicles today. While such trips are often made and are certainly easier at this time with the Tesla network of chargers, there is hope on the horizon as 1) charging networks expand and become more standardized, 2) battery range of EVs improves, and 3) high-speed (level 3) EV charging speeds improve. The article notes: "Stop me if you've heard this from an EV driver before — but a quiet, speedy vehicle that never needs an oil change is just plain nice to drive, charging headaches and all."
PHEVs can combat range anxiety, provide peppy acceleration, and often offer an increase in miles-per-gallon, but they also offer a limited range in all-electric mode and still require oil changes and other gas-engine maintenance/repairs.
Electric vs. Gas Cars: Is It Cheaper to Drive an EV?
Economics continue to change as gas prices go up and down, more EVs hit the market, EV prices fall, and buyer incentives/rebates are considered. In general, home charging costs are about 50% less than buying gasoline and EV maintenance and repair costs are also about 40-50% lower. Consumer Reports Study Finds Electric Vehicle Maintenance Costs Are 50% Less Than Gas-Powered Cars
Charging Concerns: Electric cars have a road trip problem: slow and unreliable charging : NPR While those who can charge at home or work and do mainly local driving have few issues with charging, this article nicely highlights current issues confronting those taking frequent "road trips" in EV vehicles today. While such trips are often made and are certainly easier at this time with the Tesla network of chargers, there is hope on the horizon as 1) charging networks expand and become more standardized, 2) battery range of EVs improves, and 3) high-speed (level 3) EV charging speeds improve. The article notes: "Stop me if you've heard this from an EV driver before — but a quiet, speedy vehicle that never needs an oil change is just plain nice to drive, charging headaches and all."