On August 31, 2023, the Colorado Energy Office (CEO) opened applications for its new Colorado Vehicle Exchange Program (VXC).
Last year, California passed the first law in the United States mandating that all new cars sold in 2035 and beyond be zero-emission vehicles. Other states are now beginning to follow suit and create their own incentives for pushing the production and sales of electric cars.
The Colorado program purports to help income-qualified Colorado residents get into a new electric vehicle more affordably.
The Application Process
To qualify for the VXC program, you have to go through the application process, and only those accepted can redeem their rebate. The Colorado Energy Office will accept applications on an ongoing basis, and applicants can expect the process to take ten business days.
The application requires proof of current physical Colorado address and proof of income qualification. There are several ways to prove each of these; all documentation options are listed on the CEO’s website.
If applicants cannot provide the listed documents, there are also options to submit specific alternative documents to qualify.
Who Qualifies for The Colorado Vehicle Exchange Program
Now, not everyone will qualify for this program. According to the CEO’s website, there are several eligibility criteria. You must be over 18 and possess a valid Colorado driver’s license.
Your household income must also be below 80% of the area median income. If you need clarification on the median income in your area, they have provided a simple table that makes it easy to figure out.
Gas-Powered Vehicles Eligible for Exchange
The gas-powered vehicle that owners can trade in must first be operational and gas or diesel-powered. It should also be over 12 years old or have failed an emissions test.
There are also several other title-related qualifications. You have to be the only one on your vehicle title; it has to be currently titled in Colorado, and your application name has to match the name on your vehicle’s title.
Your vehicle must also be currently registered with the Colorado DMV, and there cannot be a lien on your car or any title issues.
Electric Vehicle Options Under This Program
If you meet all of their criteria, a few more stipulations on the electric vehicles qualify for this exchange program. You have the option to either buy or lease under this program.
Then, two types of electric vehicles qualify for a point-of-sale rebate. You can choose a battery-electric car that is fully powered by battery and produces zero emissions.
Or, you can choose a plug-in hybrid electric vehicle, powered by both an electric and gasoline engine. These typically have a battery range of 20-50 miles, which is usually adequate to sustain a person’s daily driving habits.
And then, there are cost limits on the models you can choose from.
The total cost of the car cannot exceed $50,000. Other rebates, tax credits, and discounts can be applied to help meet the requirements.
For example, if a new electric vehicle has a manufacturer’s suggested retail price of $54,000, the $5,500 Xcel Energy EV rebate lowers the purchase or lease price to $48,500. At that price of $48,500, it qualifies for the VXC rebate to purchase or lease this vehicle.
Rebate Amounts for New and Used Electric Vehicles
The last detail is that you can choose a new or used EV, but the rebate amount will differ depending on your choice.
If you select a used EV, the point-of-sale rebate is $4,000.
If you choose a brand-new EV, the rebate totals $6,000.
After all rebates and credits are applied, the CVX rebate cannot exceed the remaining cost of the vehicle. So, if you choose a new electric vehicle that costs less than $6,000, the rebate will only cover the final cost of the car and nothing extra.
Exceptions and Exclusions
It’s also important to note that these rebates only apply to authorized automobile dealers, and you can check out the list of participating dealers on their website.
The CVX rebate will not cover sales tax or shipping costs, and no further trade-in value will be given in exchange for your gas-powered car except for the CVX rebate. You will trade in your vehicle in exchange for the rebate and nothing more.
At this time, this rebate is only available for cars. Hybrid vehicles, motorcycles, recreational vehicles (RVs), campers, and boats are not eligible.
Other Available Tax Incentives for Electric Vehicle Purchase in Colorado
There are also federal and state EV tax credits that can be stacked with this CVX rebate. The Colorado Electric Vehicle Tax Credit offers $5,000 on eligible EVs, and numerous federal energy-related tax credits and deductions are available to Americans, including those for individuals, bonus incentives, business deduction credits, special credits for low income earners.
This article was produced and syndicated by Wealth of Geeks.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.