Colorado boosts EV rebates as sales hit record highs

BOULDER, Colo. — Colorado residents can now receive larger rebates when purchasing or leasing electric vehicles under an expanded state incentive program aimed at accelerating the transition to cleaner transportation.

The Vehicle Exchange Colorado (VXC) program increased its rebates Monday, November 3, 20205, from $6,000 to $9,000 for new EV purchases or leases and from $4,000 to $6,000 for used vehicles. The expanded incentives apply to income-qualified residents who trade in an older or high-emitting vehicle.

State officials and industry leaders gathered at Boulder Hybrids to mark the launch of the higher rebate amounts, which come as Colorado reports record-breaking EV sales. Electric vehicles accounted for 32.5% of new-car sales in the third quarter of 2025, the highest market share ever recorded in the United States.

According to the Colorado Energy Office, the state has already surpassed 200,000 EVs on its roads and is more than a fifth of the way toward its goal of 1 million by 2030. Officials said the new incentives will help maintain momentum despite the expiration of the federal EV tax credit in September.

Qualified participants can combine the VXC rebate with up to $6,000 in state tax credits for new EV purchases or leases through the end of the year. The base credit of $3,500 will drop to $750 in January, though the $2,500 bonus for vehicles priced under $35,000 will remain in place.

Since launching in summer 2023, more than 2,800 Coloradans have used VXC rebates to replace older vehicles with electric ones, including battery-electric and plug-in hybrid models. About one in five vehicles purchased or leased through the program has been used, offering a more affordable entry point for drivers.

Funding for the increased rebates comes from the program’s existing 2026 budget. The Community Access Enterprise has approved $25.6 million in support of VXC over its first three years, with ongoing funding expected through June 2032.