Colorado EV Tax Credit Rises to $5,000

Colorado offers a big tax break for residents who buy electric cars and trucks. Coloradans might save even more by adding the federal EV tax credit.

Denver Colorado skyline
(Image credit: Getty Images)

Colorado now offers one of the highest state electric vehicle tax credits thanks to a new clean energy law. Colorado taxpayers can take advantage of this credit, which combined with the federal EV tax credit, can result in even greater savings.

The new law, "Tax Policy that Advances Decarbonization," which was recently signed by Colorado Gov. Jared Polis, aims to encourage the use of clean energy in part by providing several billion dollars in tax incentives. One is a $5,000 state tax credit for qualifying electric cars and up to $12,000 for eligible electric trucks. Colorado will also offer a statewide E-bike tax incentive, among other tax breaks.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.