Understanding Colorado EV Tax Credits & the VXC Program (Updated October 2025)
Federal EV Tax Credit
- As of October 1, The Federal EV Tax Credit has expired.
Colorado Innovative Motor Vehicle Credit
- $3,500 credit for new EVs/PHEVs (MSRP ≤ $80k), plus an additional $2,500 if MSRP ≤ $35k.
- The new vehicle credit becomes $3,850 if you finance through Kia and choose to assign the credit up-front as a discount at the point-of-sale.
⚠️ The Colorado Innovative Motor Vehicle Credit will drop to $750 starting January 1, 2026.
Vehicle Exchange Colorado (VXC) Program
The VXC program helps income-qualifying Coloradans trade in an old/high‑emitting vehicle for a rebate on a new or used EV at approved dealers.
Eligibility Requirements ✅
- Colorado resident, age 18+, with valid CO driver’s license/address.
- Income ≤ 80% AMI or enrolled in qualifying assistance programs (e.g., SNAP, SSI, Medicaid).
- Old vehicle must be ≥12 years old or fail emissions, gasoline/diesel, currently titled & lien-free in your name CO DMV.
Rebates 📋
- New EV/PHEV: Current: $6,000, Starting Nov. 3: $9,000
Used EV/PHEV: Current: $4,000, Starting Nov. 3: $6,000- New EV MSRP cap: $80,000; Used EV final negotiated price cap: $50,000. Rebate is a point-of-sale discount at authorized dealers and can stack with federal & Colorado credits.
Application & Redemption 🔁
✔️ You can stack the VXC program with the $3,500 Colorado incentive—totaling up to $12,500 in credits and rebates!
- Register and apply via the VXC portal.
- Application reviewed (~10 business days); rebate issued upon approval.
- Rebate must be redeemed at dealership within 90 days.
Opportunity Snapshot
| Incentive | Amount | Status |
|---|---|---|
| Colorado State | $3,500 | Active (reduces to $750 in 2026) |
| VXC Program | $9,000 (new) / $6,000 (used) | Active through 2032 |
Total potential savings: up to $12,500!
Give us a call at (720) 664-7691 to confirm eligibility and vehicle availability.