Take Advantage of Clean Energy Incentives In Colorado – Save the Planet and Money
By: Colorado House Democrats
It’s been one year since the passage of President Biden’s Inflation Reduction Act, accelerating the deployment of clean energy, clean vehicles, clean buildings, and clean manufacturing. But how does the most significant action Congress has ever taken to tackle the climate crisis affect you?
Well, besides the creation of jobs, the reduction of pollution, and the protection of those who are most at risk from climate change, there are a plethora of tax credits, rebates, and incentives available.
All Colorado taxpayers are eligible for the EV tax credit, which recently doubled to $5,000 for the purchase or lease of a qualifying electric vehicle. Starting Jan. 1, 2024, EVs under $35,000 MSRP will be eligible for an additional tax credit of $2,500, making the Colorado EV Tax Credit $7,500 for qualifying EVs under $35,000.
Income-qualified Coloradans can replace their vehicle that is model year 2011 or older or fails a state emissions test with an EV and receive up to a $6,000 rebate for a new EV or $4,000 for a used EV. This applies to households currently enrolled in income-qualified programs or that earn less than 80% of the area median income.
Colorado residents can combine their Colorado EV tax credits with the Federal EV incentives of a $7,500 tax credit for the purchase of a new qualifying EV. To receive the credit, you must be below the income cap of $150,000 for single filers, $225,000 for head of household, or $300,000 for joint filers.
Low-income rebates of over $1,100 and moderate-income rebates of over $500 will be available in September. In spring 2024, there will be an expanded program (for all income levels) that provides $450 off an e-bike. Applicants whose household income is below 80% of area median income are eligible for low-income rebates and applicants whose household income is between 80-100% of the area median income are eligible for moderate-income rebates.
Unlike a furnace, heat pumps don’t burn fossil fuels, saving owners an average of 20-40% on their annual utility bills. Colorado taxpayers can currently apply for a combined 10% tax credit and a 2.9% sales tax exemption for a 12.9% discount on the price of heat pump equipment. Xcel Energy customers also may be eligible for a variety of heat pump rebates. Starting in 2024, Coloradans are eligible for a one-time $1,500 tax credit for an air-source heat pump or a $3,000 tax credit for a ground-source heat pump. Colorado residents who install heat pump water heaters can also apply for a $500 tax credit.
Starting January 2024, Coloradans can receive a 30% point-of-sale discount on electric lawnmowers, leaf blowers, trimmers and snow blowers. This means there’s no application or process – the prices will be marked down at the retailers.
This program provides free home audits conducted by a verified service provider to determine what energy efficiency upgrades a home requires. If a home receives WAP services, the home will be evaluated for free rooftop solar, provided at no cost to the homeowner.
Eligible households in Denver can access tens of thousands of dollars for upgrades like heat pumps and weatherization for their home.
Incentives for Commercial, Businesses, Communities, and Government
This community electric vehicle charging grant program provides funding to install Level 2 and DC fast charging stations. This program is open to all organizations except for single-family homes and deeded parking spaces. Funding for stations can be up to $150,000. Applications are open through Oct. 13, 2023.
This grant program is designed to increase access to high-speed charging in communities and along highway corridors across Colorado. Applications open in fall 2023.
This grant program is designed to support communities to address their mobility needs with an electric mobility component, including electric carshare, electric vanpool, community electric bike share, community charging infrastructure, and more. The application deadline is Oct. 27, 2023.
Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may be eligible for a maximum credit amount of $7,500 per vehicle with a gross weight rating of less than 14,000 pounds or $40,000 for all other vehicles. The credit is limited to the lesser of 15% of the vehicle’s cost (30% for vehicles not gasoline or diesel powered) or the incremental cost of the vehicle, as compared to vehicles powered with a gasoline or diesel internal combustion engine.
