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Tax credit · Colorado Department of Revenue · Colorado

Colorado Electric Vehicle Tax Credit

Up to $5,000 (new) or $2,500 (used)

Colorado offers one of the most generous state-level EV tax credits in the United States — up to $5,000 for new electric vehicles and up to $2,500 for used. The credit applies regardless of MSRP (no cap), making Colorado attractive for higher-end EV buyers who exceed the federal 30D MSRP cap of $80,000. The credit also offers an additional $2,500 stack for vehicles with battery sourcing from US/Free Trade Agreement countries, mirroring the federal 30D structure. Combined with federal 30D and Xcel Energy charger rebates, Colorado EV buyers see total stacked savings of $13,000+ in many cases.

Eligibility

Who qualifies?

Colorado residents purchasing or leasing new or used EVs with at least 4 kWh battery capacity.

MSRP cap?

No state-level MSRP cap (unlike federal 30D's $55k/$80k caps).

Lease eligibility?

Yes. Lease 30+ months for full credit; shorter leases prorated.

How to apply for CO EV Credit

  1. Purchase or lease qualifying EV

    Vehicle must have at least 4 kWh battery and be eligible per CDR rules.

  2. File CO Form DR 0617

    Attach to Colorado state income tax return.

  3. Carry forward if needed

    Excess credit rolls to next CO tax year.

Stacking with other programs

Stacks with federal 30D ($7,500), Xcel Solar*Rewards charger incentive (~$500), federal 30C charger ($1,000 if eligible census tract). Colorado is unusual in having a state EV credit that extends to higher-MSRP vehicles where the federal credit does not.

Frequently asked questions

Stack with federal 30D? +
Yes. Total federal + CO: $7,500 + $5,000 = $12,500 off a $50,000 EV. Add Xcel charger rebate ~$500 = $13,000.
Used EV — federal 25E vs CO state? +
Federal 25E pays $4,000 (30% of price up to $25k vehicle). Colorado pays $2,500 used. Both stack — total ~$6,500 on a $20,000 used EV.
High-MSRP EVs? +
Colorado has no MSRP cap, so the state credit applies even on Tesla Model S, Lucid Air, Mercedes EQS, etc. Federal 30D excludes these (MSRP cap $80k for SUVs, $55k for sedans).

Official program page: https://tax.colorado.gov/electric-vehicle-tax-credit

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