Colorado passes several new EV subsidy bills

The Colorado legislature has passed several bills concerning the subsidization of electric vehicles, trucks and bikes. The subsidies can be stacked with federal subsidies, allowing for a maximum of $40,000 in subsidies for an electric truck.

One bill, titled HB23-1272 and signed into law by state governor Jared Polis, increases the state EV tax credit from its current level of $2,000 up to a total of $5,000 starting from July 1, 2023 for vehicles with a starting MSRP up to $80,000, with an additional $2,500 tax credit available for vehicles with a suggested MSRP of $35,000 or less. This would lead to potential savings of up to $12,500 with both federal and state subsidies.

Over time, the credit steps down annually until it expires at the end of 2029. Colorado residents can stack these credits with federal EV tax credits. Another bill increases the state tax credit for medium and heavy-duty (MHDV) electric trucks to $12,000 through 2032. These tax credits can be layered with federal tax credits for maximum savings of up to $40,000 per truck. Additionally, the state establishes a new statewide incentive of $450 for e-bikes beginning in April 2024.

Charging infrastructure was also addressed with the bills, having passed HB22-1233, the EV Parking and Charging Requirements require the state electric board to adopt rules facilitating EV charging at multifamily buildings beginning March 1, 2024.

In May, the Colorado Energy Office launched a fleet electrification scheme worth $7 million named the Fleet-ZERO grant program. This had been the first major political electrification initiative in the US American state since 2021, when a programme to install 20,000 charging stations in the state by 2023 was approved by regulators. In 2020, Colorado had also introduced measures to boost vehicle electrification, based on California’s subsidy model. However, we have reports on Colorado’s electrification initiatives going back as far as 2015, proving that California has not been leading the charge by itself.

colorado.gov (PDF), pirg.org, insideevs.com