Coloradans can now take advantage of increased incentives to make the switch to clean electric cars as Colorado leads the nation with record-breaking EV sales
Boulder - Governor Polis and EV industry leaders gathered at Boulder Hybrids this morning to celebrate an increase in Vehicle Exchange Colorado (VXC) Electric Vehicle rebate amounts that took effect today. The Governor was joined by Colorado Energy Office (CEO) Executive Director Will Toor and Boulder Hybrids owner Paul Guzyk. VXC rebates increased from $6,000 to $9,000 for new EV purchases and leases and $4,000 to $6,000 for used EV purchases and leases. Even without the federal tax credit, which expired on September 30 of this year, eligible Coloradans can still get up to $15,000 off the upfront cost of a new electric vehicle with state incentives alone.
“Do not wait Coloradans, take advantage of our big electric vehicle rebates and save money toward your EV. I am proud to build upon our work to save Coloradans money, and improve our air quality by helping Coloradans unlock savings toward a fun, efficient, and safe electric vehicle,” said Governor Polis.
Colorado’s generous EV incentives, combined with other incentives, have propelled Colorado’s EV market to No. 1 in the nation. In the third quarter of 2025, EVs made up 32.5% of new car sales in the state, the highest ever EV market share recorded in the country to date.
“We’re more than a fifth of the way to our goal of nearly 1 million EVs on Colorado roads before the end of the decade,” said Toor. “Colorado EV adoption remains strong because Coloradans want to drive EVs. These ongoing state incentives will ensure EVs remain affordable while keeping our EV market moving forward, even as the Trump administration tries to slow it down.”
VXC rebates are available for income-qualified Coloradans exchanging a qualified old or high-emitting vehicle to purchase or lease a new or used EV, which includes both battery electric and plug-in hybrid electric vehicles. VXC participants can combine their rebate with up to $6,000 in state tax credits for a new EV purchase or lease until the end of the year. This includes a $3,500 base credit and a $2,500 adder for EVs priced under $35,000. The base state tax credit will decrease to $750 starting January 1, but the $2,500 adder for lower cost EVs will remain.
These increased VXC rebates are essential to enable income-qualified Coloradans to access EVs. Since the program launched in summer 2023, more than 2,800 Coloradans have traded in a qualified old or high-emitting vehicle to purchase or lease an EV. VXC is also the only State incentive currently available for used electric vehicles, which offer an even more affordable EV option for Coloradans. To date, about one in five vehicles purchased or leased with a VXC rebate was a used vehicle.
Because the now-expired federal EV tax credit was available for all EV leases, compared to stricter vehicle eligibility requirements for purchases, leasing an EV has been the best deal for some of the most popular EV models and allowed dealerships in Colorado to offer leases for as little as $19/month in 2024. Last year, nearly half of all EVs sold in the United States were leased. With lease terms averaging 2 - 3 years for new cars, a significant influx of newer EV models is expected in the used market over the next several years. As more used EVs become available, VXC participants will be able to take advantage of this increased incentive to buy newer EV models from the used market that meet their needs at affordable prices.
The Community Access Enterprise has approved $25.6 million in funding to support this program over the first three years, with additional ongoing funding expected until June 30, 2032. Funding for this incentive increase comes from the VXC program’s existing budget for the 2026 fiscal year.
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