Colorado is increasing the amount of money offered through the state’s electric vehicle rebate program in November as a response to President Donald Trump’s elimination of federal tax credits for the same purchases.
The Colorado Energy Office announced Thursday morning that the state rebate for new EV purchases will increase to $9,000 from $6,000, and the rebate for used EV purchases will increase to $6,000 from $4,000.
The increased rebates begin Nov. 3, one month after the federal tax credit for purchases ended on Sept. 30 as part of Trump’s plan to push fossil fuels in the United States despite their contribution to climate change.
“The change that we’re making right now is really in response to the fact that the Trump administration has effectively just increased taxes on people by removing the tax credits for electric vehicles and made it harder for folks to afford EVs,” said Will Toor, executive director of the Colorado Energy Office. “We are responding by increasing the incentives that are available.”
Colorado’s rebate remains dependent on a household’s income. A buyer must make less than 80% of the area median income in whichever county they live.
For example, a Denver household of four people must have an income of $112,080 or less, according to the energy office’s income qualification chart. A single person in Denver would need to earn $78,480 or less.
Those who receive the rebate must exchange an older, high-emissions vehicle. The rebate is given at the time of the new car purchase, so buyers do not have to wait until they file income taxes to benefit. People can apply online at coloradoenergyoffice.aptim.com.
The rebate program is paid for by the state’s Community Access Enterprise, which is funded through fees charged to rideshare companies and retail delivery services such as DoorDash.
Colorado’s budget crunch, which is requiring legislators to trim $1 billion from the state’s general fund, does not impact the program, Toor said. The enterprise fund money is dedicated to increasing the use of electric cars, trucks and bicycles in the state.
Funding for the increased incentives will come from the Vehicle Exchange Colorado program’s existing budget for the 2026 fiscal year, and the ongoing funding for the exchange program is expected through June 30, 2032.
The state started its Vehicle Exchange Colorado program in 2023 and has issued rebates toward 2,743 car purchases, said Ed Piersa, senior program manager at the energy office.
The increased rebate amounts reflect Colorado policymakers’ belief that electric vehicles are the automobile of the future, Toor said.
Electric vehicles have proven to be a popular option for Colorado’s drivers.
More than 200,000 electric vehicles are registered in Colorado, and the cars and trucks have accounted for more than a quarter of all new vehicle sales in the state in 2025, the energy office reported.
Encouraging more people to drive them improves Colorado’s air quality and helps the state reach its climate goals of eliminating almost all greenhouse gas emissions by 2050. For drivers, the vehicles have lower fuel and maintenance costs than gas-powered vehicles, Toor said.
“We think it’s really important to continue the momentum on EVs here,” Toor said. “Colorado has emerged as the top electric vehicle market in the country as far as market share. We want to maintain that momentum even as the federal government goes in the other direction.”
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