Charge Ahead: A Comprehensive Guide to Colorado EV Rebates & Charging Incentives

Content Table

Colorado Electric Vehicle Tax Credits, Rebates and Incentives

Colorado EV Charger Rebates

EV Charging Rates in Colorado

Home Electrification Incentives in Colorado

Photo by Tim Arterbury on Unsplash 

Welcome to our latest blog post where we dive into the world of electric vehicle (EV) incentives in Colorado! As the state continues to lead the charge toward a sustainable future, understanding the array of tax credits, rebates, and charging incentives available can help you make the most of your investment in clean energy transportation.

Colorado has positioned itself as a pioneer in promoting electric vehicles, offering a variety of financial benefits designed to make the transition to EVs smoother and more affordable. From generous tax credits that can significantly reduce your purchase price, to rebates that ease the cost of home charging infrastructure, and incentives that support public charging access, Colorado’s programs are crafted to support and accelerate the adoption of electric vehicles.

In this blog, we’ll break down the specifics of each incentive, how to qualify, and tips for maximizing your benefits. Whether you’re a first-time EV buyer or a seasoned electric vehicle enthusiast looking to enhance your charging setup, we’ve got you covered. So buckle up and get ready to discover how Colorado’s EV incentives can drive you toward a greener and more cost-effective future!

Colorado Electric Vehicle Tax Credits, Rebates and Incentives

In 2018, Colorado established itself as an electrification leader by announcing an ambitious plan to transition nearly all light-duty vehicles to EVs by 2050, and help build a robust corridor of EV charging stations across the state to help boost the economy, promote tourism and reduce harmful air pollution.

In 2023, more than 14% of new vehicles in Colorado were EVs. If you're one of the 50% of residents who are considering an EV purchase, be sure to combine state tax credits with Vehicle Exchange Colorado rebates and other incentives listed below to save on your new vehicle.

Colorado EV Tax Credit

Colorado residents can claim a state tax credit worth up to $7,500 for the purchase or lease of new EVs and plug-in hybrid electric vehicles (PHEVs). The Colorado EV Tax Credit of $5,000 applies to the purchase of an EV with an MSRP of $80,000 or less and to leases of at least two years. An additional $2,500 state credit is available if you choose an EV model costs under $35,000.

You can get a state EV tax credit in the form of a price reduction from the dealership at the time of purchase, or you can claim it on your Colorado income tax return.

Colorado EV Rebate for Vehicle Exchange

The Vehicle Exchange Colorado Program helps replace old or high-emission vehicles with cleaner alternatives like EV s and PHEVs. To qualify, you must meet a few requirements:

First, the vehicle you are currently using must be more than 12 years old or fail a Colorado emissions test. You will also need to meet income requirements; your household income must not exceed 80% of the median income for your area. You can access income data for your county on this spreadsheet.

If you qualify for the Vehicle Exchange Colorado Rebate, you can receive up to a $6,000 rebate on the purchase or lease of a new battery electric vehicle or plug-in hybrid one. If you choose a used model, the rebate cannot exceed $4,000.

To qualify for the full rebate, the MSRP cannot exceed $80,000 for a new vehicle and $50,000 for a used vehicle.

Federal Tax Credits For Electric Vehicles

Colorado car buyers may also be eligible for federal tax credits such as the Clean Vehicle Tax Credit of up to $7,500 for a new vehicle or up to $4,000 for a used clean vehicle. Income limits as well as battery component and critical mineral restrictions may apply. Always consult a qualified CPA or tax professional to confirm your eligibility.

Utility Rebates For Electric Cars

Colorado utilities have developed their own electrification programs for energy transition technologies such as electric vehicles.

Scroll down to see a few examples, and be sure to check with your local utility to see what programs or offerings are available in your area.

Black Hills Energy EV Rebate

As a Black Hills Energy resident customer, you can apply for a $2,500 rebate if you purchase a new or used EV or plug-in hybrid vehicle with an MSRP of less than $50,000. You can apply for this rebate at the point of sale or on the Black Hills Energy website after purchasing your EV. Please note that income requirements to meet.

Xcel Energy EV Rebate

Xcel Energy offers income-based rebates for the purchase of new and used EVs. You can qualify if your income equals 80% or less of the median income in your area and you participate in an income-based program such as TANF, SNAP or LEAP.

Xcel Energy electric vehicle rebate is $5,500 for the purchase of a new EV and $3,000 for a used EV.

San Isabel Electric Association EV Rebate

The San Isabel Electric Association is offering a $500 rebate to all qualified EV purchases.

Gunnison County Electric Association EV Rebate

Gunnison residents can claim a rebate of up to $1,000 on the purchases of new EV & PHEV. The rebate is reduced to 25% of the purchase price up to $500 for used plug-in vehicles and up to $1,000 for used all-electric vehicles.

Colorado EV Charger Rebates

In addition to the above incentives for purchasing an EV, Colorado residents can also apply for a rebate on the purchase and installation of a Level 2 EV chargers, ranging from $250 to over $1,000. Scroll down for more details on specific utility providers in Colorado.

Colorado Utility Rebates for Level 2 EV Chargers & Installation

As a residential Holy Cross Energy customer, you can receive $549 off the cost of an EV charging station. You must select one of the EVSE models that is compatible with the electric utility's charging network and join the HCE EV charging program.

Xcel Energy facilitates home charging through a program that includes installation and maintenance of Level 2 chargers. If you join this program, you'll qualify for a $500 rebate on your EV charger, up to $1,300 depending on your income.

Thanks to Black Hills Energy's rebate program, you can save up to $500 on the installation of a home EV charger. The incentive is up to $1,300 if you meet certain income requirements. Please note that you must be enrolled in the utility's time-of-use  rate schedule to qualify for this rebate.

If you are a residential customer of the Gunnison County Electric Association, you can receive a rebate of 50% of the installation and equipment costs, or a payment of $1,250. This program is only available for hardwired Level 2 EV chargers and you must be enrolled in the electric utility's TOU program.

Empire Electric Association will cover 50% of the cost of purchasing and installing EVSE, up to a limit of $250. If you enroll in the electric utility's TOU program, the limit increases to $1,250.

La Plata Electric Association offers several EV charger incentives. If you join a program that collects charging data via Wi-Fi, you can get a free Level 2 charger from this utility provider. You can also purchase your own smart charger and receive a 50%  rebate, up to $250.

As a Mountain Parks Electric customer, you can get a 50% rebate on the cost of purchasing and installing a Level 2 EV charger, up to $1,000.

The Mountain View Electric Association offers a similar program with a $250 limit. You can get $125 toward the purchase of a Level 2 EVSE and another $125 toward installation cost, not to exceed 50% of your expenses.

If you live in Northern Colorado and get your electricity from the Poudre Valley Rural Electric Association, you can get up to $250 to install a Level 2 charger. Rebates of up to $1,000 are available if you participate in the utility's pilot EV charging program and TOU program.

The Sangre de Cristo Electric Association will cover 50% or $250 of the cost of the EV home charging program. If you choose to manage your charger, you will receive up to $1,000.

You can get a $1,000 rebate or 50% of the purchase and installation cost for an Energy Star Level 2 charger with the San Isabel Electric Association.

The San Luis Valley Rural Electric Cooperative offers a $250 rebate for non-managed Level 2 EV chargers. Installing a managed charger will qualify you for a rebate of up to $1,000.

The San Miguel Power Association will provide you with $250 toward the purchase of your EVSE and up to $250 toward the cost of installation, as long as the Level 2 charger you install is compatible with the electric utility's TOU program.

If you get your electricity from United Power, you can receive a rebate of up to $500 for upgrading your wiring before installing a Level 2 charger. Join United Power EV Program and you'll qualify for a rebate of up to $1,000.

Non-Residential Utility Rebate Programs for EV Charging Stations in Colorado

Colorado's commercial EV charging station rebates are available to multi-family properties, fleet charging hubs, workplaces, public EV chargers, and more.

Xcel Energy has an extensive program aimed at developing private and public charging. The utility reviews applications on a case-by-case basis and offers free charging equipment if your project is selected. You can also get help with upgrading your electrical infrastructure if needed.

Your business can receive up to $2,000 per Level 2 port or $35,000 per DC fast-charging port from Black Hills Energy. As a non-profit or government organization, you may also qualify for additional rebates.

The Gunnison County Electric Association offers a Charge at Work program that covers up to $1,250 for Level 2 EV charger installation. Your business must enroll in the utility's TOU program to apply for this rebate.

Mountain Parks Electric has a commercial EV rebate program that offers rebates of up to $1,000 for connected Level 2 chargers and up to $7,500 for DC fast chargers.

As a commercial Empire Electric Association customer, you can take advantage of a rebate program that pays 50% of the cost of your EV charging project. The limit for Level 2 chargers is $250, but it increases to $1,250 if you enroll in a TOU program. Rebates for DC fast chargers range from $4,500 to $9,000, depending on performance.

If you install a managed Level 2 charger, the Mountain View Electric Association will cover 50% or up to $1,000. Rebates for non-managed chargers are capped at $250.

You can receive up to $1,000 for a public Level 2 charger through the Poudre Valley Rural Electric Association. After installing a DC fast charger, you may qualify for a commercial rebate of $3,000 to $7,000 based on performance.

Santa Isabel Power will cover 50% of the cost of installing a DC fast charger with a peak rating of 50 kWh, up to a maximum of $5,000.

The San Luis Valley Rural Electric Cooperative offers several rebate programs that apply to commercial EV chargers. You can receive up to $1,000 for managed Level 2 chargers, including those with fee collection capabilities. If you're considering DC fast charging, the utility provider will cover 50% of the cost, with limits ranging from $3,000 to $7,500, depending on the power rating of the device.

With a Colorado EV Charger Rebate, San Miguel Power will cover 50% of your EVSE purchase and installation. There is a $250 limit for private Level 2 chargers, a $1,000 limit for public Level 2 chargers, and a $3,000 to $7,500 limit for DC fast chargers, depending on performance.

In northern Colorado, Estes Park Power and Communications, Fort Collins Utilities, Longmont Power & Communications, Loveland Water and Power, and Platte River Power Authority are offering a $5,000 rebate for public Level 2 EV chargers under the Efficiency Works regional utility collaboration.

Public and commercial charging programs are eligible for a 50% rebate from Mountain View Electric Association. Rebates can be up to $250 for non-managed Level 2 chargers and up to $1,000 for managed Level 2 chargers, including EVSEs that are part of a charging network. For DC fast charging, rebates range from $3,000 to $7,500, depending on performance.

If you collect a fee for EV charging, you can receive a $1,000 rebate from the Sangre de Cristo Electric Association for each Level 2 charging station. Rebates range from $3,000 to $7,500 per DC fast charger. Rebates are limited to $500 if a Level 2 charger is installed without a retail charge.

If you are planning a community charging project, the Charge Ahead Colorado Program can cover 80% or 90% of the cost, with a limit of $6,250 per Level 2 port and $50,000 per single-port DC fast charger. The program issues funding on a case-by-case basis and prioritizes charging in multi-family dwellings, workplaces, non-profits, places of worship, schools, community centers, and more.

EV Charging Rates in Colorado

By signing up for a time-of-use (TOU) program, you can charge your EV during off-peak hours at a discounted rate. Many utilities in Colorado offer TOU programs and often require you to enroll in one of these programs to qualify for the rebates mentioned above.

Below is a list of utilities that offer TOU programs for EV charging. Please contact your utility provider for the most up-to-date information on their specific electric rate programs.

Special EV Charging Rates from Colorado Utilities

As a residential customer of Xcel Energy, you can enroll in a seasonal TOU program with on-peak, mid-peak and off-peak rates. The rate for EVs can be as low as $0.12 per kWh between 7 P.M. and 1 P.M. The utility also offers different rate programs for commercial customers, including peak partner rewards, TOU rates, and more.

Black Hills Energy offers one residential TOU program and two commercial TOU programs based on energy consumption levels. These programs can help you save money on your home and commercial EV charging by replacing your energy bill with as low as $8.77 per month for home EV charging.

As a Gunnison County Electric Association customer, your off-peak energy rate can be as low as $0.09 per kWh for home or commercial EV charging.

Grand Valley Power is another utility provider that offers a TOU program. By opting in, you can take advantage of an off-peak rate of $0.09 per kWh and on-peak rate of $0.19 per kWh.

Joining Empire Electric Association's TOU program will help you save money on EV charging at home with an off-peak rate of $0.04 per kWh.

Mountain Parks Electric has a flexible TOU program with different tiers based on usage, with rates as low as $0.03 per kWh. Commercial facilities can also save on DC fast charging with a preferred rate of $0.03 per kWh.

If you are a customer of the Poudre Valley Rural Electric Association, you can earn bonus bill credits under the charging schedule for your EV. The utility also offers a TOU program for residential and commercial customers at an off-peak rate of $0.05 per kWh.

Santa Isabel Electric’s seasonal TOU program includes an off-peak rate of $0.06 per kWh for residential customers if you use more than 1,000 kWh and an off-peak rate of $0.07 per kWh for commercial customers.

With United Power's TOU program, you can pay $0.05 per kWh for off-peak EV charging.

Home Electrification Incentives in Colorado

Photo by Raze Solar on Unsplash

In 2024, Colorado is expected to provide home energy rebates through the Inflation Reduction Act, making $70.4 million for home efficiency rebates and $70 million for home electrification rebates available for appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to smart electrical panels necessary to enable those retrofits.

Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage systems, or investing in a heat pump, will help you save even more while reducing your impact on the environment.

In Colorado, in addition to the U.S. federal government, you can receive home electrification incentives through your electricity provider. Scroll down to read details about rebates and incentives for specific home electrification technologies.

Battery Storage

Xcel Energy's Renewable Battery Connection program offers an upfront incentive of $500 per kW, up to 50% of the cost of the battery equipment. Customers who enrolled in the program can receive a $100 incentive per year for up to five years.

Holy Cross Energy customers who install solar batteries and enroll in the Distribution Flexibility Program Tariff can receive an upfront incentive of $500 per kW, up to 25 kW. If you choose the Time of Day Tariff, you can receive $250 per kW up to 25 kW.

In addition, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery energy storage systems 3 kWh and larger.

Electrical Panels

The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit (up to 30% of the project cost, capped at $600) for electrical panel upgrades needed to complete electrification projects such as heat pumps and heat pump water heaters. The 25C tax credits are available to renters and homeowners making upgrades to their primary or secondary residence.

Qualifying electrical panels must meet National Electric Code (NEC) standards and have a capacity of 200 amps or more. This means that your new/upgraded electrical panel must be able to serve a load of at least 200 amps, but you do not need 200 amps of incoming utility service. Smart panels may qualify if they can serve a 200 amps load for you.

If you are applying for 25D for a residential solar or battery storage project and the installation requires you to upgrade your main panel, you can also use the 25D to electrical panel costs.

Heat Pumps & Heat Pump Water Heaters

The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit (capped at $2,000) is available. Eligible technologies must meet certain energy efficiency requirements.

Solar Panels

Black Hills Energy will pay $0.03 per kWh of electricity generated by your panels for the first 10 years they’re connected to the grid. In exchange, Black Hills Energy will receive the Renewable Energy Credits (RECs) associated with your system.

Holy Cross Energy customers can receive an upfront incentive of $250 per kW for systems between 0-6 kW, or $100 per kW for systems between 6-25 kW.

Xcel Energy offers a $1,000/kW incentive up to 7 kW to customers who are income-eligible or live in a Disproptionately Impacted community. You will need to allow Xcel to apply for your RECs for 20 years.

Also, don't forget to apply for the 25D Residential Clean Energy Tax Credit, which provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.