Electric Vehicle Tax Credit
For the 2026 tax year: Base credit is $750 for new EVs with MSRP up to $80,000. An additional $2,500 bonus is available for vehicles with an MSRP under $35,000. Total maximum credit is $3,250. Note: A $600 assignment bonus was available in 2024-2025 but expired Jan 1, 2026.
Colorado residents and businesses can claim an Electric Vehicle Tax Credit starting at $750 for new EVs with an MSRP up to $80,000. An additional $2,500 bonus credit is available if the vehicle's MSRP is under $35,000, bringing the maximum total credit to $3,250.
Guidance
The Colorado Energy Office offers a state tax credit ranging from $750 to $3,250 for Colorado residents and businesses purchasing or leasing a new Electric Vehicle (EV). To qualify, the vehicle must have an MSRP of $80,000 or less and be officially titled and registered in Colorado.
Homeowner Tasks
- Confirm your Colorado residency or business status.
You must be a recognized Colorado resident or business to claim this tax credit.
- Purchase or lease a qualifying new EV.
If you are leasing the vehicle instead of purchasing, the lease agreement must be for a minimum of 2 years.
- Title and register the vehicle in Colorado.
The vehicle must be officially titled and registered within the state of Colorado.
- Claim the credit on your state taxes.
Submit your claim for the tax credit when filing your state taxes with the Colorado Department of Revenue.
Contractor Tasks
- Verify the vehicle is a new Electric Vehicle.
Ensure the vehicle being sold or leased is classified as a new EV.
- Provide documentation of the vehicle's MSRP.
Supply paperwork clearly showing the Manufacturer's Suggested Retail Price (MSRP) for tax filing purposes.
- Provide a finalized purchase or lease agreement.
Provide the customer with official documentation showing the transaction details, ensuring lease terms are at least 2 years if applicable.
Qualification
No special qualification flags for this rebate.
Not required: energy star certified equipment · ahri matched pair · income-qualified · has income-qualified portion · pre-approval required · permit required · contractor enrollment required · fuel switching required
Important Dates
- Program runs:
- January 1, 2026
Budget & Availability
- May 12, 2026Program is actively funded through the Colorado Department of Revenue.
How to Submit
Claim the credit on your Colorado income tax return by filing Form DR 0617. You must submit: 1) Completed Form DR 0617, 2) Copy of the permanent Colorado Vehicle Registration, 3) Copy of the vehicle invoice, purchase agreement, or lease agreement. Alternatively, you may assign the credit to the dealer/financing entity at the point of sale using Form DR 0618.