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:

Eligible vehicles must have a manufacturer’s suggested retail price (MSRP) below $80,000. Light-duty EVs or FCEVs purchased or leased between January 1, 2024, and January 1, 2029, with an MSRP 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 and the Colorado Energy Office EV Tax Credits websites.

(Reference Colorado Revised Statutes 39-22-516.5, 39-22-516.7, and 39-22-516.8)