Plug-In Electric Vehicle (PEV) Tax Credit
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Qualified all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) titled and registered in Colorado are eligible for a tax credit. Light-duty PEVs purchased, leased, or converted before January 1, 2026, are eligible for a tax credit equal to the amounts below:
| Category | 2020-2021 | 2021-2023 | 2023-2026 |
|---|---|---|---|
| Light-duty EV or PHEV | $4,000 for purchase or conversion; $2,000 for lease | $2,500 for purchase or conversion; $1,500 for lease | $2,000 for purchase or conversion; $1,500 for lease |
| Light-duty electric truck | $5,500 for purchase or conversion; $2,750 for lease | $3,500 for purchase or conversion; $1,750 for lease | $2,800 for purchase or conversion; $1,750 for lease |
| Medium-duty electric truck | $8,000 for purchase or conversion; $4,000 for lease | $5,000 for purchase or conversion; $2,500 for lease | $4,000 for purchase or conversion; $2,500 for lease |
| Heavy-duty electric truck | $16,000 for purchase or conversion; $8,000 for lease | $10,000 for purchase or conversion; $5,000 for lease | $8,000 for purchase or conversion; $5,000 for lease |
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. The credit that may be claimed for converting a truck to a qualifying truck is limited to the cost of conversion.
Eligible purchased vehicles must be new, and eligible leased vehicles must have a lease term of not less than two years. A purchaser may assign the tax credit generated through the purchase, lease, or conversion to any of the above categories of vehicle to the financing entity, allowing the purchaser to realize the value of the tax credit at the time of purchase, lease, or conversion. The financing entity may collect an administrative fee of no more than $150.
For more information, see the Colorado Department of Revenue's Income 69 FYI publication.
(Reference Colorado Revised Statutes 39-22-516.7 and 39-22-516.8)