Colorado launches new $5,000 EV tax credit that stacks with $7,500 federal credit

It also means that the $35,000 Tesla exists as long as you buy a Model Y in Colorado after July 1, 2023.

for Stephen Rivers

3 hours ago

Colorful Colorado makes it even cheaper to buy electric vehicles. A new bill further doubles the tax credit available to a total of $5,000 every time someone buys a new electric vehicle starting in July. It’s a big move that could put a host of new cars within reach of buyers.

Until now, new buyers of electric vehicles could claim a tax credit of up to $2,000. As of July 1, 2023, that number rises to $5,000, as long as the car itself does not have an MSRP of more than $80,000. The state tax credit is cumulative with any federal tax credit that may be available, meaning the total savings could be as much as $12,500.

Starting in 2024, electric vehicles with an MSRP of less than $35,000 will be eligible for an additional $2,500 tax credit, which could mean a total savings of up to $15,000, as long as the car itself qualifies for the credit full federal tax of $7,500. In theory, it could bring a vehicle with an MSRP of $34,999 down to just $19,999. Theoretical prices are interesting, but real-world impacts are also important.

More: How to get a $7,500 tax credit on almost any electric vehicle lease thanks to an IRA loophole

To put that into perspective, that makes the standard range Tesla Model Y a $34,990 car. Even the long-range dual-engine version is under $40,000. That’s a pretty attractive price for Colorado residents. That last part is also key. One must pay taxes in Colorado to qualify for the tax benefit.

Generally speaking, Colorado is pretty tax-friendly to EV owners. It also offers up to $1,000 in tax credits for electric vehicle charging kits, and at least $300 to anyone who also buys an electric bike.

Whether or not other states will follow is still up for debate. One thing is certain. The $35,000 Tesla is finally back…only in Colorado…as long as Tesla doesn’t raise prices on the standard Model Y range before July 1st.

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Colorful Colorado is making it even cheaper to buy electric vehicles. A new bill more than doubles the available tax credit to a total of $5,000 whenever someone buys a new EV starting from July. It’s a big move that could put a number of new cars within reach of buyers."
  [1]=>
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Until now, new EV buyers could apply for a tax credit of up to $2,000. As of July 1st, 2023, that figure goes to $5,000 so long as the car itself doesn’t have an MSRP above $80,000. The state tax credit stacks on top of whatever federal tax credit one might get meaning the total savings could end up being $12,500."
  [2]=>
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Beginning in 2024, EVs with an MSRP under $35,000 will be eligible for an additional tax credit of $2,500 which could bring the savings up to $15,000 total so long as that same car qualifies for the full $7,500 federal tax credit. In theory, it could take a vehicle with an MSRP of $34,999 down to just $19,999. Theoretical prices are interesting but the real-world impacts loom large too."
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More: How To Get A $7,500 Tax Credit On Almost Any EV Lease Thanks To An IRA Loophole"
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To put this into a bit of perspective it effectively makes the Tesla Model Y Standard Range a $34,990 car. Even the Long Range Dual Motor version comes in under $40,000. That’s quite an attractive price for Colorado residents. That last bit is key too. One must pay taxes in Colorado to qualify for the tax benefit."
  [5]=>
  string(216) "



Generally speaking, Colorado is quite friendly in terms of tax policy toward EV owners. It also offers up to $1,000 in tax credits for EV charging equipment, and at least $300 to anyone who buys an e-bike too."
  [6]=>
  string(258) "



Whether or not other states will follow is still up for debate. One thing is for sure. The $35,000 Tesla finally exists again… in Colorado only…. so long as Tesla doesn’t jack up pricing on the Model Y Standard Range before July 1st."
  [7]=>
  string(1795) "




         
            
  
        "

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