EV Tax Credits in Colorado Are Getting Cut in Half by 2026

There are a ton of electric vehicles in Colorado. You see the vehicles and their charging stations in most cities and towns.

Colorado Leads the Nation in Electric Vehicle Adoption

One of my co-workers actually looks forward to hanging out at Buc-ee's electric charging station in Johnstown on her commute home. The chore has become part of her weekly routine.

READ MORE: Colorado is On Track To Become Global Electric Vehicle Leader

Colorado actually leads the nation in electric vehicles. We have the highest electric vehicle market share in the country, which means we have the highest percentage of electric vehicles per driver in the nation.

Current Colorado EV Tax Credits Still Offer Big Savings

Right now, Colorado residents are still receiving benefits for purchasing electric vehicles. According to the Colorado Energy Office, residents who pay taxes are eligible for a $2,500 tax credit for purchasing an electric vehicle up to $35,000. A $3,500 credit is given to Colorado taxpayers and purchasers who spend between $35,000 and $80,000.

Why Many Coloradans Are Choosing EVs for the Tax Perks

I know a lot of people who intentionally buy electric vehicles because of the tax incentives. However, according to a new report, those tax incentives are going to be shrinking in Colorado.

READ MORE: More Electric Charging Stations Coming to Colorado

Colorado’s EV and E-Bike Credits Will Be Cut in 2026

CPR reports that tax credits for electric vehicles and e-bikes are going to be slashed in half in 2026. They noted that the $2,500 bonus for electric vehicles under $35,000 will likely still stay in place.

I have looked into purchasing an electric vehicle, and what I found is that most electric vehicles exceed the price of $35,000.