Understanding EV Tax Credits & the VXC Program (Updated October 2025)
🏔️ Colorado State EV Incentives
- $3,500 credit for new EVs and PHEVs with an MSRP under $80,000.
- plus an additional $2,500 if MSRP of the vehicle is less than $35,000.
- The new vehicle credit becomes $3,850 if you finance through VWFS and choose to assign at the point-of-sale.
- ⚠️ Deadline: The Colorado EV Rebates will reduce to $750 on January 1, 2026.
🔁 Vehicle Exchange Colorado (VXC) Program
The VXC program helps income-qualifying Coloradans trade in an old/high‑emitting vehicle for a rebate on a new or used EV at approved dealers like Emich Volkswagen of Boulder.
✅ Eligibility Requirements
- Colorado resident, age 18+, with valid CO driver’s license/address.
- Income ≤ 80% AMI or enrolled in qualifying assistance programs (e.g., SNAP, SSI, Medicaid).
- Old vehicle must be ≥12 years old or fail emissions, gasoline/diesel, currently titled & lien-free in your name CO DMV.
📋 Rebates
- New EV/PHEV: Current – $6,000, Starting Nov. 3 – $9,000
- Used EV/PHEV: Current – $4,000, Starting Nov. 3 – $6,000
New EV MSRP cap: $80,000; Used EV final negotiated price cap: $50,000.
Rebate is a point-of-sale discount at authorized dealers.
🔁 Application & Redemption
- Register and apply via the VXC portal.
- Application reviewed (~10 business days); rebate issued upon approval.
- Rebate must be redeemed at dealership within 90 days.
✔️ You can stack it with the $3,500 Colorado incentive—totaling up to a potential $12,500 in rebates!
💡 Opportunity Snapshot
| Incentive | Amount | Status |
|---|---|---|
| Federal | Expired | Expired Sept 30, 2025 |
| Colorado State | $3,500 (+$2,500 ≤ $35k) | Active (reduces in 2026) |
| VXC Program | $9,000 (new) / $6,000 (used) | Program active through 2032 |
Total potential savings: up to $12,500!
🚨 Federal EV Tax Credit
⚠️ Expired: Both credits have expired on October 1st, 2025.