The State of Colorado has passed legislation that gives $5,000 tax credit for the purchase of an electric vehicle in the State, in addition to the existing $7,500 federal tax incentive.
That’s $12,500 cut that makes electric vehicles extremely competitive with traditional car purchases.
The announcement from the Southwest Energy Efficiency Project highlights the simplicity of the new state incentive:
[source: Southwest Energy Efficiency Project]
On May 4, the Colorado legislature approved HB 1332, a bill that dramatically improves the state’s alternative fuel vehicle tax credits. It simplifies a complex formula, setting a flat $5,000 credit for the purchase of a light duty electric vehicle (EV).
Most importantly, it makes the credits assignable to a car dealer or finance company, which will effectively turn them into a point of sale incentive.
This makes the Colorado incentive the best in the nation, combining one of the highest tax credits with a point of sale option, and is expected to significantly increase EV sales.
SWEEP proposed the concept of assignable tax credits and helped build broad support for the legislation.