Colorado EV Incentives & Tax Credits (2026)
Colorado EV incentives · Updated September 2026
Save up to $12,250 on a new EV, or $6,000 on a used EV
Colorado still offers some of the strongest EV incentives in the country, even though the federal credits have ended. All four Emich stores are authorized Vehicle Exchange Colorado (VXC) dealers, and our team knows every step of claiming these programs. We check what you qualify for, handle the paperwork and apply eligible savings at signing, so you aren't waiting on a refund.
*VXC is for income-qualified Colorado households that trade in an older or high-emitting gas or diesel vehicle. See who qualifies below.
At a glance
What you can save on an EV in Colorado in 2026
Two state programs do the heavy lifting now: the VXC rebate, which has an income limit, and the Colorado EV tax credit, which doesn't. They can be combined on a new EV. Leases of at least 2 years qualify for both.
With VXC: maximum incentives in 2026
For income-qualified buyers with a qualifying trade-in
Without VXC: tax credit only
No income limit. Same scale as the chart at left.
VXC amounts apply to vehicles bought or leased on or after Nov. 3, 2025. Tax credit amounts are for tax year 2026.
Which incentives apply to you?
| Incentive | New EV | Used EV | Lease | Income limit | Applied at signing |
|---|---|---|---|---|---|
| Vehicle Exchange Colorado (VXC) rebate | $9,000 | $6,000 | Yes, 2+ years | Yes | Yes |
| Colorado EV tax credit | $750–$3,250 | No | Yes, 2+ years | No | Yes, with form DR 0618 |
| Federal clean vehicle credits | Ended | Ended | Ended | — | — |
Vehicle Exchange Colorado
VXC, explained
VXC is a Colorado Energy Office rebate for income-qualified households that trade in an older or high-emitting gas or diesel vehicle and buy or lease an electric vehicle or plug-in hybrid. An authorized dealer applies it at the point of sale. It isn't paid after the sale and isn't retroactive.
Who qualifies
Your trade-in must
The EV you choose must
VXC rebates rose 50% on Nov. 3, 2025
Source: Colorado Energy Office.
State tax credit
The Colorado EV tax credit, year by year
The Colorado Innovative Motor Vehicle Credit is for new EVs only. It applies the first time a vehicle is sold or leased to an end user, so used EVs don't qualify. In 2026 it's $750 for a new EV with an MSRP up to $80,000, plus $2,500 more if the MSRP is under $35,000. On a lease of 2 years or more, the lessee gets the credit.
Colorado EV tax credit for a new EV, by year
Maximum credit shown. In 2024–2026 the base credit applies to MSRPs up to $80,000. For 2027, HB26-1289 (signed June 2026) sets a $2,000 base credit for MSRPs up to $50,000 and extends the extra $2,500 to MSRPs under $40,000. Future amounts can change. Sources: Colorado Department of Revenue; Colorado Energy Office.
Federal credits
Federal EV tax credits have ended
The One Big Beautiful Bill Act ended the federal new, used and commercial clean vehicle credits for any vehicle acquired after Sept. 30, 2025. "Acquired" means a binding written contract plus a payment. Some websites still list these credits, but they no longer apply. Colorado's own incentives weren't affected, which is why VXC and the state tax credit matter more than ever.
Federal EV credits: before and after Sept. 30, 2025
Source: IRS fact sheet FS-2025-05.
Examples
What the savings look like on a real price
How the savings stack: two examples
For a VXC-approved buyer with a qualifying trade-in
*Illustrative examples, before taxes and fees. $28,800 is close to the median price of the used EVs in our inventory on Sept. 29, 2026.
The Emich EV team
We handle the incentive paperwork, start to finish
EV incentives come with income rules, trade-in rules, price caps and state forms. Our sales and finance teams know these programs inside and out, so you don't have to become an expert. Here's how it works at any of our four stores:
Check what you qualify for
Tell us the EV you're considering and whether you have a possible VXC trade-in. We walk through the income, trade-in and price rules with you before you choose a vehicle.
Get VXC approval before you buy
VXC approval comes from the Colorado Energy Office. We point you to the online application and help you gather what you need.
Choose an eligible EV
We confirm the MSRP or price limits on the vehicle you want. On Sept. 29, 2026, all 65 of our new EVs were under the $80,000 MSRP cap, and 66 of our 69 used EVs were at or under the $50,000 VXC price cap.
Take the savings at signing
We apply your approved VXC rebate at the point of sale and assign your state tax credit on form DR 0618. Each incentive shows as its own line on your contract and comes off the price that day.
We complete the dealer paperwork
Our finance team handles the dealer-side VXC and tax credit documents and your trade-in paperwork. You leave with copies of everything.
Our EV selection
Four EV stores, new and used
Emich sells new EVs from Kia, Chevrolet and Volkswagen and used EVs from many brands, with factory-authorized EV service at every store. New EVs in stock include the Kia EV3, EV6 and EV9, the Chevrolet Bolt, Equinox EV and Blazer EV, and the Volkswagen ID.4.
134 new and used EVs in stock across our four stores
Inventory snapshot, Sept. 29, 2026. Stock changes daily.
Home charging
Home charging incentives
Most EV owners do most of their charging at home. Your electric utility may help with the cost of a Level 2 charger or the wiring for one.
| Program | What it offers | Good to know |
|---|---|---|
| Xcel Energy home wiring rebate | Up to $1,300 toward home charger wiring | Amounts and enrollment rules vary by customer. Confirm with Xcel. |
| Black Hills Energy Level 2 charger rebate | $500 per port, or up to $1,300 if income-qualified | Requires the Time-of-Day rate |
| Holy Cross Energy Level 2 charger rebate | Up to $549 | Requires enrolling in its charging-delay rate |
| Xcel Energy EV purchase rebate | Closed | Its funds ran out in November 2024 |
| Federal home charger credit (30C) | Ended | Not available for chargers placed in service after June 30, 2026 |
Utility programs change often. Check with your utility before you buy a charger.
Colorado EV incentive questions
Is there still a federal EV tax credit?
No. The federal new, used and commercial clean vehicle credits ended for vehicles acquired after Sept. 30, 2025, under the One Big Beautiful Bill Act. The federal home charger credit ended for chargers placed in service after June 30, 2026. Colorado's state incentives weren't affected.
How much is the Colorado EV tax credit in 2026?
$750 for a new EV with an MSRP of $80,000 or less, plus $2,500 more if the MSRP is under $35,000, for a maximum of $3,250. Leases of at least 2 years qualify.
Can I get the Colorado EV tax credit on a used EV?
No. The credit applies only the first time a vehicle is sold or leased to an end user. Used EV buyers may still qualify for a $6,000 VXC rebate.
What is Vehicle Exchange Colorado (VXC)?
VXC is a Colorado Energy Office rebate for income-qualified households that trade in an older or high-emitting gas or diesel vehicle. It pays $9,000 toward a new EV or plug-in hybrid and $6,000 toward a used one, applied at the point of sale by an authorized dealer.
Who qualifies for VXC?
Households with income below 80% of their county's area median income, or anyone enrolled in CARE, WAP, Medicaid, RTD LiVE, Section 8, SSDI/SSI, WIC, LEAP or SNAP. You also need a qualifying trade-in: 12 or more model years old or failed a Colorado emissions test, running on gas or diesel, titled and registered in Colorado in your name, with no liens.
Can I combine VXC with the Colorado EV tax credit?
Yes. On a new EV with an MSRP under $35,000, that's up to $12,250 in 2026: $9,000 from VXC and $3,250 from the tax credit.
Do I have to wait until tax time to get the Colorado credit?
Not if you assign it to the dealer. You sign form DR 0618 when you buy, and the full credit comes off your price that day as a separate line on your contract. Our finance team handles this for you.
Are Emich dealerships authorized for VXC?
Yes. Emich Volkswagen and Emich Kia in Denver, Emich Chevrolet in Lakewood and Emich VW of Boulder are all on the Colorado Energy Office's list of authorized VXC dealers.
Do plug-in hybrids qualify for VXC?
Yes. VXC covers new and used battery-electric vehicles and plug-in hybrids.
Does VXC work with a lease?
Yes, on a new EV or plug-in hybrid with a lease term of at least 2 years.
Get help at any Emich store
All four stores are authorized VXC dealers with EV-trained sales and finance teams.
Sources
- Colorado Energy Office: Vehicle Exchange Colorado
- Colorado Energy Office: increased VXC rebates (Nov. 3, 2025)
- Colorado Energy Office: EV tax credits
- Colorado Department of Revenue: Innovative Motor Vehicle Credit (Nov. 2025)
- Colorado Department of Revenue: Form DR 0618
- IRS: FAQs on clean vehicle credit changes (FS-2025-05)
- EV Colorado: Save money
- Black Hills Energy: Colorado residential EV rebates
- Holy Cross Energy: Charge at home
- CPR News: Xcel Energy stops EV discounts (Nov. 20, 2024)
This page is general information, not tax or legal advice. Incentive amounts and rules can change without notice, and VXC depends on available program funds. Last reviewed Sept. 29, 2026.