Colorado Now the Best State for Tax Dodgers to Buy EVs

Patrick Hoffstetter
by Patrick Hoffstetter
colorado now the best state for tax dodgers to buy evs

Electric cars take considerable flack from average consumers for being far too expensive in comparison to gas-powered competitors — and that’s before you realize it takes years to make that money back in fuel savings. Combine those two points with range anxiety and you’ve summarized the major hangups normal folk have with electric-vehicle ownership today.

The U.S. Federal government offers tax incentives, in the form of income tax rebates, to ease the monetary pain of EV ownership for average buyers. Individual states have joined the rebate incentive bandwagon, too. However, the state of Colorado is changing its tune, and will now gift you an incentive before you even drive off the dealer lot — no tax return required.

While the Federal government already offers a massive $7,500 tax break to EV buyers, that money is a reimbursement and comes after the sale. Colorado’s solution to make the initial purchase easier is a new $5,000 incentive that can be used as at the point of sale.

The new bill, HB1332, passed on the fourth of this month and offers a major improvement to how the states handle tax breaks. This replaces the old method of income tax breaks, which were due to expire in 2022.

The old method used a formula to calculate the girth of your incentive, from zilch all the way to $6,000. With that gone, a subset of Coloradans will lose out on another grand of savings, but the average consumer still saves more.

The new incentive works like this: instead of a complex formula determining what each purchaser receives, the bill creates a flat $5,000 credit. In addition to that, it allows the credit to be assigned to a dealership or finance company, which turns it into a discount that can be taken directly off the sticker price of the car. The total discount available to car buyers in the state of Colorado is $12,500, a total coup for the electric-vehicle market.

While the Leaf looks to be the cheapest option, and comes with free public charging, these discounts apply to every electric car available for sale in the state of Colorado. You can wrangle an amazing deal on anything you desire — as long as what you desire has a battery sending power to an electric motor that drives the wheels.

Where’s my electric Miata already?

[Images: Nissan]

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4 of 35 comments
  • Frank Mansfield Frank Mansfield on May 18, 2016

    Just because it's legal doesn't make it right.

  • Redav Redav on May 18, 2016

    Is the Smart EV available in CO? It's about $4k cheaper than the Leaf. Ford also ran some heavy deals on the eFocus. Unfortunately, CO is one of the most coal-dependent regions in the US. If they push EVs, they ought to transition away from coal to be consistent. They already get a lot from wind, but it appears there is still a lot of untapped potential in WY, KS, & NE. They also have pretty good solar potential.

    • See 1 previous
    • VoGo VoGo on May 19, 2016

      @rpn453 The reductions in solar cell costs are overwhelming coal for electricity production. You will not see any more coal plants built in the US.

  • Tassos What was the last time we had any good news from Ford? (or GM for that matter?)The last one was probably when Alan Mulally was CEO. Were you even born back then?Fields was a total disaster, then they go hire this clown from Toyota's PR department, the current Ford CEO, Fart-ley or something.He claims to be an auto enthusiast too (unlike Mary Barra who is even worse, but of course always forgiven, as she is the proud owner of a set of female genitals.
  • Tassos I know some would want to own a collectible Mustang. (sure as hell not me. This crappy 'secretary's car' (that was exactly its intended buying demo) was as sophisticated (transl. : CRUDE) as the FLintstone's mobile. Solid Real Axle? Are you effing kidding me?There is a huge number of these around, so they are neither expensive nor valuable.WHen it came out, it was $2,000 or so new. A colleague bought a recent one with the stupid Ecoboost which also promised good fuel economy. He drives a hard bargain and spends time shopping and I remember he paid $37k ( the fool only bought domestic crap, but luckily he is good with his hands and can fix lots of stuff on them).He told me that the alleged fuel economy is obtained only if you drive it like a VERY old lady. WHich defeats the purpose, of course, you might as well buy a used Toyota Yaris (not even a Corolla).
  • MRF 95 T-Bird Back when the Corolla consisted of a wide range of body styles. This wagon, both four door and two door sedans, a shooting brake like three door hatch as well as a sports coupe hatchback. All of which were on the popular cars on the road where I resided.
  • Wjtinfwb Jeez... I've got 3 Ford's and have been a defender due to my overall good experiences but this is getting hard to defend. Thinking the product durability testing that used to take months to rack up 100k miles or more is being replaced with computer simulations that just aren't causing these real-world issues to pop up. More time at the proving ground please...
  • Wjtinfwb Looks like Mazda put more effort into sprucing up a moribund product than Chevy did with the soon to be euthanized '24 Camaro.