Colorado’s Leading EV Financial Incentives Get Modification Proposal
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Colorado has arguably the best electric vehicle purchase incentives in the country — a very substantial tax credit (the largest) and also a sales tax exemption.
A new bill passed by the Colorado State Legislature will change these incentives somewhat, though — arguably, for the better, or for the worse, depending on who you’re asking.
The new bill — House Bill 16-1332 — will allow the state’s electric vehicle (EV) tax credit to be claimed by a dealership or financing agent. Which means that the bill will allow for a “purchase price” that’s minus the tax credit figure, right from the start. It won’t be necessary to wait until tax season to lower the cost-of-purchase for the vehicle; the sticker price itself will be lower from the start.
That said, the new bill also removes tax credit eligibility for the purchase of used EVs — potentially hammering those of lesser financial means, and also used EV sales agents as well. Previously, EVs that hadn’t yet been registered in Colorado were eligible for the tax credit as well.
Notably, the new bill also reduces the tax credit from up to $6,000 (depending on battery-pack size) down to $5,000. And it allows dealers to charge up to $150 for the transfer of the credit.
The owner Green Eyed Motors, a used EV sales business, Luke Walch, commented on the new bill: “It’s totally going to hose me. If their ultimate goal is to get more electric cars on the road, it doesn’t make sense. The barrier of entry is absurdly high with some electric cars. I can sell a Leaf on my lot for $8,300. I’ve tried to sell electric cars without (the credit) and with it. It’s going to have a huge impact.”
The new bill had substantial bipartisan support.
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