With the national electric vehicle incentives having expired on September 30 due to new federal legislation, Colorado is revving up its Vehicle Exchange Colorado program to keep EVs affordable, but only for buyers whose income is below 80% of their area’s median income and who have a qualifying gas or diesel vehicle.

Starting November 3, rebates for income qualified buyers will jump from $6,000 to $9,000 for new EVs or leases, and from $4,000 to $6,000 for used ones. The move aims to bridge the gap left by the revoked federal credits, which previously offered up to $7,500 for new EVs and $4,000 for used models.

“The market has made it clear, EVs are here to stay,” Polis said in a news release. “Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost. I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: get out there right now.”

The federal credits, part of the Inflation Reduction Act, were axed under the One Big Beautiful Bill Act signed by President Donald Trump on July 4, ending support for clean vehicles after a nearly 20-year run.

“Transportation is a leading source of emissions in Colorado, making widespread EV adoption essential to achieve our climate goals,” said Will Toor, executive director of the Colorado Energy Office, in the release. “Coloradans have made it clear that they want EVs, and with Congress revoking key incentives that save Coloradans money, we are stepping up. These increased incentives will help ensure EVs stay affordable in Colorado as we work toward nearly 1 million EVs on our roads by 2030.”

Colorado boasts more than 200,000 registered EVs, with electric models accounting for a quarter of new vehicle sales in 2025 so far.

The Colorado program, launched in summer 2023, has helped more than 2,700 residents ditch old, polluting cars for cleaner alternatives by trading in qualifying vehicles, according to a Colorado Energy Office release.

To get the rebate, buyers must be a Colorado resident, 18 or older, with a valid state driver’s license who own an eligible old or high-emitting vehicle including gasoline or diesel-powered models from 2013 or earlier or those that fail emissions tests. The car must be titled and registered in Colorado in the buyer’s name, free of liens, and not have a salvage, junk, or dismantled title.

Income eligibility is key. Household income must be below 80% of the buyer’s area median income, or they must be enrolled in programs like Medicaid, SNAP, SSI, WIC, LEAP, Section 8 vouchers, SSDI, RTD LiVE, CARE, or WAP.

The program’s website includes a chart showing the pre-calculated 80% income cap, so all that is required to confirm income eligibility is to check Line 9 of the federal 1040 tax form or recent pay stubs.

According to the website, Boulder County has the highest 80% median income at $120,480.  The lowest 80% median income is $81,600, shared by multiple counties.

Documentation is straightforward: Submit the first page of your 2023 or 2024 federal tax form (showing Line 9 for total income) or recent pay stubs. Prove your address with a driver’s license, utility bill, or similar document from the past year.

The rebate applies to battery electric or plug-in hybrid vehicles. New EVs must have a manufacturer’s suggested retail price of $80,000 or less, while used vehicles must cost $50,000 or less. Leases are allowed but need to be for at least two years, and the EV title must include the buyer’s name.

The program is funded through the Community Access Enterprise, with $25.6 million allocated for the first three years and ongoing support through 2032.

The Community Access Enterprise is a government-owned business established by the state General Assembly in 2021. It gets its funding from a portion of the Retail Delivery Fee that imposes a $0.28 fee on every taxable personal property delivery.

To get started, visit the VXC webpage at https://energyoffice.colorado.gov/vehicle-exchange-colorado for details in English or Spanish. Apply online before buying from one of over 170 participating dealers statewide.

Coloradans can stack the program rebate with remaining state incentives, like Colorado’s EV tax credit, currently at $3,500 for 2025 and $750 in 2026 for qualifying vehicles. Only one rebate is allowed per household, and it can’t exceed the vehicle’s remaining cost after other discounts.