Starting this week, Coloradans have the opportunity to save an additional $6,000 on the purchase or lease of a new electric vehicle simply by turning in their old gas guzzlers. Find out who is eligible here.
Colorado is launching the Vehicle Exchange Colorado (VXC) program to incentivize the exchange of old, air-polluting gasoline models for new and used electric vehicles.
Applications, open Thursday, August 31, will help income-eligible Coloradans partially cover the upfront costs of replacing their gas guzzlers with electric vehicles.
Eligible residents can receive a $6,000 rebate on the purchase of a new electric vehicle (or PHEV) or $4,000 off the purchase of a used vehicle. The rebate can be used in addition to other state and federal tax credits and rebates, including the $7,500 IRA credit, resulting in over $13,500 in savings between the two incentives alone.
The $6,000 electric car rebate program is designed to help Colorado meet its goal of putting 940,000 electric cars on the road by 2030. There are currently about 90,000 electric cars in the state, or about 15.7 electric cars per 1,000 residents.
Ford Mustang Mach-E (Source: Ford News Europe)
Who is Eligible?
Some restrictions now apply. After all other rebates, tax credits and other rebates, the purchase or lease of the new electric vehicle must be less than $50,000.
For example, if a new car has an MSRP of $54,000, Xcel Energy’s $5,500 EV rebate would bring the price below the threshold, allowing the buyer to also redeem the VXC credit. Additional services, upgrades, destination charges and other fees are not included in the purchase price.
To meet income requirements, household income must be less than 80% of the area median income (AMI).
For example, if you live in Boulder, a four-person household must earn less than $106,240 to be eligible for the refund. The full list of AMI requirements can be found here.
Electric SUV Hyundai IONIQ 5 (Source: Hyundai)
The vehicle surrendered must also be at least 12 years old or not pass Colorado emissions testing (but still be operational). Additionally, the vehicle must be registered in Colorado, have no liens and must be registered in the participant’s name.
To be eligible, you must be a Colorado resident, over 18 years of age, have qualifying income, be eligible to purchase a vehicle in the state, and own a car that meets the requirements.
Those who meet the requirements can apply on the Colorado Energy Office website. The program begins Thursday, August 31st at 9 a.m. MT.
Ed Piersa, program manager at the Colorado Energy Office, said transportation is one of the most significant greenhouse gas producers in the state (via The Denver Post) and said the new program is “beneficial to all Coloradans.”
The program will help those who might not otherwise have been able to afford a new electric vehicle get the chance to experience the benefits. Meanwhile, Piersa said cleaner air will help the entire state through fewer gas guzzlers on the road.
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