U.S. Department of Energy | Office of Energy Efficiency and Renewable Energy U.S. Department of Energy Office of Energy Efficiency and Renewable Energy

Electric Vehicle (EV) and Hydrogen Fuel Cell Electric Vehicle (FCEV) Tax Credit

Qualified EVs and FCEVs titled and registered in Colorado are eligible for a tax credit. Light-duty EVs and FCEVs purchased or leased before January 1, 2029, are eligible for a tax credit equal to the amounts below, per calendar year:

Vehicle Type Prior to July 1, 2023 July 1, 2023, to December 31, 2023 2024 2025 2026 2027 2028
Light-duty EV or FCEV $2,000 for purchase; $1,500 for lease $5,000 $5,000 $3,500 To be determined To be determined To be determined
Light-duty electric or hydrogen fuel cell truck 3,500 for purchase; $1,750 for lease $2,800 for purchase; $1,750 for lease $5,000 $3,500 To be determined To be determined To be determined
Medium-duty electric or hydrogen fuel cell truck $5,000 for purchase; $2,500 for lease $4,000 for purchase; $2,500 for lease $12,000 $12,000 $4,000 $4,000 $4,000
Heavy-duty electric or hydrogen fuel cell truck $10,000 for purchase; $5,000 for lease $8,000 for purchase; $5,000 for lease $12,000 $12,000 $8,000 $8,000 $8,000

Light-duty EVs or FCEVs purchased or leased between January 1, 2024, and January 1, 2029, with a manufacturer’s suggested retail price below $35,000 may receive an additional tax credit of $2,500.

The credit amount for any qualifying truck is limited to the difference in manufacturer’s suggested retail price between the qualifying truck and a comparable truck that operates on either gasoline or diesel fuel. Eligible purchased vehicles must be new, and eligible leased vehicles may not have a lease term of less than two years. The financing entity may collect an administrative fee of no more than $250.

For more information, see the Colorado Department of Revenue Individual Income Tax Guidance Publications website.

(Reference Colorado Revised Statutes 39-22-516.5, 39-22-516.7, and 39-22-516.8 and House Bill 1272, 2023)

Jurisdiction: Colorado

Type: State Incentives

Enacted: Jun 6, 2016

Amended: May 31, 2019

Technologies: EVs

See all Colorado Laws and Incentives.