December 5, 2024
Colorado earlier this year surpassed California in the sales of electric vehicles and plug-in hybrids.
From July through September, 25.3% of all new cars sold in Colorado were EVs or plug-in hybrids. That’s a 5.4% increase from the April-June time period. California, the perennial leader in EV sales, recorded 24.3% increase during the same period.
Washington state was next on the sales list at 23.5% followed by District of Columbia at 19.4% and Nevada at 16.3%, according to data from the Northeast States for Coordinated Air Use Management.
In Colorado, 82% were full electric vehicles and 18% were plug-in hybrid electric vehicles.
Spurred by the most lucrative incentives in the nation, Colorado has been on a roll in EV sales throughout 2024.
“Colorado’s nation-leading progress in electric vehicle adoption is a key part of our ambitious efforts to achieve net-zero emissions in Colorado by 2050,” said Will Toor, executive director of the Colorado Energy Office.
“Between investments in charging infrastructure and generous incentives to bring down purchase and lease costs, our commitment to making electric vehicles an affordable and reliable option for Coloradans is paying off.”
Colorado still lags California in EV sales for the first cumulative nine months of 2024, according to the Colorado Automobile Dealers Association.
Travis Madsen, the transportation program manager for the Southwest Energy Efficiency Project, concurred with that assessment. “Things are heading in the right direction” he said.
Next year, Colorado will offer somewhat smaller incentives and whether the federal incentives will remain intact is an open question. “We will be tasked with keeping the momentum going,” said Madsen.
Carrots aplenty line the path to the sales lot. All Coloradans can get a $5,000 state tax credit for purchasing or leasing those new EVs (battery electric and plug-in hybrid electric) with manufacturer’s suggested retail prices under $80,000. An additional $2,500 can be applied against purchase of EVs with suggested retail prices of under $35,000.
The $5,000 state tax credit is available through the end of this year. It drops to $3,500 starting in January 2025.
Income-qualified Coloradans exchanging an eligible old or high-emitting vehicle can also take advantage of a $6,000 rebate through the Vehicle Exchange Colorado program for a new EV purchase or lease and a $4,000 rebate for a used EV purchase or lease.
Madsen pointed out that the income-qualified EV rebate program offered through Xcel Energy was a great success, although all available funds have now been reserved. The program had a budget of $6 million, and somewhere around 1,200 customers claimed financial help for purchase of new or used EVs. “The $6 million budget went pretty fast,” he said.
In addition, Coloradans may be eligible for a $7,500 federal tax credit for the purchase or lease of certain EV models that meet specific manufacturing requirements. A $4,000 federal tax credit is available for used EV purchases and leases.
Might those federal tax credits be curbed? The national press has chewed over the possibility that Republicans under Trump, who has been heavily influenced by Elon Musk, may try to reduce or eliminate the tax breaks for EV buyers.
Madsen said he would not be surprised if the incoming administration changes the tax credit for individual vehicle purchases or leases, but is more optimistic that the commercial EV tax credit that was made available through the Inflation Reduction Act of 2022 will prove more durable. That tax credit has helped dealers offer better deals on EV leases even for models that do not qualify for the individual credit.
Republicans hold a slim five-vote majority over Democrats in the House of Representatives, 220 to 215. Battery factories and other components of EV manufacturing can be found in quite a few congressional districts represented by Republicans. Madsen speculates that some Republicans may vote against efforts to slow the momentum of EV adoption, because the credit is providing economic benefits in a diverse array of locations across the country.
Meanwhile, car manufacturers continue with plans to roll out new models such as the Chevy Equinox EV. Madsen sees no fundamental changes. “If federal support declines, they might manufacture fewer vehicles,” he said. “Those kinds of changes are possible.”
Also at issue has been the confidence level for charging. Colorado, in some cases working with the federal government, now has more than 5,500 publicly available charging ports. Another $5 million has been awarded by the state to install an additional 576 ports via the Charge Ahead Colorado program.
