New CO electric vehicle tax credit kicks in 2024

In addition to the already existing $5,000 tax credit for most electric vehicles (EVs), Coloradans can now save an additional $2,500 on eligible EVs with an an MSRP of $35,000 or less, beginning January 1, 2024. EVs are are cleaner to drive and cheaper to fuel and operate than gas-powered vehicles. Colorado’s tax credits are some of the most generous credits in the country.   Read more on other laws coming into effect in 2024.
Note: as of Jan. 1, 2025, the basic EV tax credit in Colorado has gone down to $3,500, as scheduled. The additional $2,500 for EVs under $35,000 remains the same.