Colorado Switches To Single-Rate $5,000 Tax Credit For Electric Cars
Thanks to the approval of the SWEEP’s HB 1332 bill, Colorado now has a simple, flat $5,000 credit program available for purchasing an electric car, in place of the previously more complicated system.
Because the credits are now also assignable to a car dealer or finance company, this effectively turns them into a point of sale incentive for consumers – a big plus.
On the negative side, the old program could net a credit of up to $6,000.
SWEEP is Southwest Energy Efficiency Project Public interest org that advances energy efficiency policy in Arizona, Colorado, Nevada, New Mexico, Utah & Wyoming
SWEEP calls this new approach the best in the nation, and soon we will probably see the proof in increased sales.
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.
$5,000 on top of the federal tax credit of $7,500 translates to $12,500 – about a third off the median starting electric car price in America.