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The State of Colorado recently approved change to the Colorado EV tax credit that will provide a $5,000 tax credit at the time of purchase for any new electric vehicle, replacing the former system that required buyers to wait until they file for the credit as part of their tax return. House Bill 16-1322, which will take effect January 1, 2017, provides a great incentive for consumers and will help drive EV adoption throughout the state.
“The new Colorado tax credit for electric vehicles is simple to obtain and among the highest in value in the US,” said Maria Eisemann, Program Director of Northern Colorado Clean Cities, and member of the DENC partner and stakeholder committee. “There has never been a better time in Northern Colorado to buy a car that will save you money, protect the environment, reduce our dependence on oil and is really fun to drive!”
Under the new rule, buyers can transfer their tax credit to the dealership or financing agency, effectively creating an immediate discount at the time of purchase. The change makes the process much easier to navigate and simpler for residents of Northern Colorado wishing to purchase an electric vehicle.
“This set amount makes it very transparent and easier to explain because by law we [the dealership] can’t give tax advice to a prospective customer,” said Ed Tynan, owner of Tynan’s Nissan in Fort Collins. “Going from the former equation to a point of sale credit will dispel a lot of the questions about qualifying for the tax credit and how much it will be.”
Will Toor, Director of the Transportation Programs at the Southwest Energy Efficiency Project (SWEEP) added, “SWEEP proposed assignability as a way to make a tax credit function like a point of sale rebate. The Colorado Energy Office embraced the idea and helped organize a broad coalition that led to bipartisan success at the legislature.”
DENC and its parent organizations also played an integral role in helping support the successful passage of the legislation.
**Note: This post has been updated from its original version.