A Guide to Colorado EV Incentives for Business Owners
Federal tax credits for electric vehicles have been extended through 2021, and the Clean Energy for America Act would extend those credits even further. According to the legislation, the cap of 200,000 cars eligible for the credits would be removed retroactively, which means that even Tesla cars made in the US and General Motors electric vehicles (EVs) purchased after May 24, 2021, would qualify for the credit of up to $7,500.
Additionally, the tax credit would only expire once 50% of new cars sold in the US are EVs. That could give us decades of fully refundable tax credits: a stark contrast to current legislation, which may end this year.
But even with new federal EV incentives on the horizon, it makes sense for people to also look to state incentives. Business owners, especially, can stand to profit from Colorado EV incentives for upgrading their fleets or business vehicles to electric, as well as for installing EV charging stations on their property.
Colorado Electric-Vehicle Tax Credits for Business Owners
If you’re a business owner looking to reduce your tax liability, Colorado EV incentives may offer the benefits you desire for upgrading your fleet or providing business cars for yourself or your employees. Colorado EV rebate programs do not differentiate between individual purchases and companies that purchase employee vehicles; both can receive the same rebates. However, heavy-duty and light-duty commercial trucks earn greater credits than light passenger vehicles, such as a Ford Mustang Mach-E or a Tesla Model X.
Colorado offers nice incentives for EV owners through its Income 69 program. Dubbed “Innovative Motor Vehicle and Truck Credits for Electric and Plug-in Hybrid Electric Vehicles,” the program provides fully refundable tax credits for qualified vehicles purchased from January 1, 2021, to January 1, 2026.
The Colorado EV rebate tiers are as follows for January 1, 2021, through January 1, 2023:
Light-duty passenger vehicles: $2,500
Light-duty electric trucks: $3,500
Medium-duty electric trucks: $5,000
Heavy-duty trucks: $10,000
Vehicles purchased from January 1, 2023, through January 1, 2026, qualify for the following rebates:
Light-duty passenger vehicles: $2,000
Light-duty electric trucks: $2,800
Medium-duty electric trucks: $4,000
Heavy-duty trucks: $8,000
Colorado EV Incentives for Leases
If you lease cars or trucks for your business, you also qualify for the Colorado electric-vehicle tax credit under Income 69. Tax credits are as follows for vehicles purchased between 2021 and 2026:
Light-duty passenger vehicles: $1,500
Light-duty electric trucks: $1,750
Medium-duty electric trucks: $2,500
Heavy-duty trucks: $5,000
Electric-Vehicle Tax Credit — Colorado EV Infrastructure
The most recent application period for Colorado EV incentives ended June 11, 2021. But Charge Ahead Colorado, a joint program from the Regional Air Quality Council and the Colorado Energy Office, could open applications again at any time; they typically hold application rounds in January, May, and October.
These programs provide incentives for installing EV infrastructure that meets certain standards. For commercial building owners, multifamily properties, cities and municipalities, these incentives can vastly defray the cost of EV charging stations.
Incentives vary depending on whether you install EV chargers for your fleet or for general use, and on the type of EV chargers installed. In general, the program funds 80% of the cost of EV charging stations up to the following limits:
Fleet-only charging stations: $6,000
Dual-port stations: $9,000
Multiple-connection standard stations with a minimum of 50 kW: $35,000
Ultra-fast multiple-connection stations: $50,000
Partner With a Company That Can Make the Most of Your EV Charging Stations
If you’re looking to take advantage of EV charging incentives in Colorado as an additional revenue stream for your business, or just aspiring to manage your EV fleet of vehicles, EV Connect provides the solutions to help.
We can help you deploy, manage and optimize your EV charging stations, whatever your goals might be. Reach out today to learn more.
Sources
Volt Equity – The Clean Energy for America Act and its Potential Impact on Tesla
Income 69 – Innovative Motor Vehicle and Truck Credits for Electric and Plug-in Hybrid Electric Vehicles
Clean Air Fleets – Charge Ahead Colorado