COLORADO (KOAA) — Gov. Jared Polis this week announced plans to expand Colorado’s electric vehicle (EV) rebate program, giving more residents the opportunity to save money when switching to electric.
Under the updated Vehicle Exchange Colorado (VXC) program, rebates have increased from $6,000 to $9,000 for new EV purchases and leases, and from $4,000 to $6,000 for used EVs.
The rebates are available to income-qualified Coloradans who trade in an older or high-emitting vehicle for a new or used electric model.
The state says the goal of the change is to encourage more drivers to make the switch to cleaner vehicles, even as the federal EV tax credit has expired. With the combined incentives, some buyers could save up to $15,000 off the upfront cost of a new electric car.
In a statement, Polis urged residents to take advantage of the expanded program.
“Take advantage of our big electric vehicle rebates and save money toward your EV,” Polis said. “We’re building on our work to save Coloradans money and improve air quality.”Some experts say the larger rebates could make a meaningful impact on EV adoption rates statewide.
“If you're in the market for an EV, you should be very happy,” said Joe Craig, an economics professor at the University of Colorado Colorado Springs. “Now is the time to go. You lost the federal subsidy, but you're basically being compensated by a state one.” Others, however, question whether incentives are the best economic approach.
“Generally speaking, you want to fix the problem where it is,” Craig said. “If the problem is pollution from petroleum-using cars, tax cars that use petroleum. Don’t subsidize electric vehicles.”Funding for the increased rebates comes from the program’s existing budget and is approved through 2032, according to the Colorado Energy Office.
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