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.