Colorado EV Tax Credit: Leverage Savings

Colorado EV tax credit

Colorado Pays You to Plug In

The Ford Motor Company continues its drive toward a healthier environment by creating more alternative-fuel vehicles. That commitment pays off for Colorado drivers, because the state offers tax credits for purchasing or leasing electric vehicles and plug-in hybrids, such as the Ford Mustang Mach-E. Beyond the credit itself, drivers see lower emissions and real savings at the pump. Ask our finance staff how the Colorado EV tax credit applies to the model you have in mind, and visit Western Slope Ford to find something that fits your driveway and your budget.

What the Ford Mustang Mach-E Puts Back in Your Pocket

The Ford Mustang Mach-E qualifies thanks to its all-electric powertrain. Colorado hands back $750 for a new EV or plug-in hybrid with a sticker price under $80,000, plus another $2,500 for models priced under $35,000. Leases count too, as long as the term runs at least two years. Add lower fuel and maintenance costs over the years you own it, and the total is worth the math. Contact a sales professional at Western Slope Ford for the details before you decide.

Hybrid Shoppers, Read This First

Colorado writes its rules around one question: can you plug the vehicle in? The credit covers battery-electric vehicles and plug-in hybrids, and the state requires a battery of at least 4 kWh that can be recharged from an external power source. A standard hybrid does not meet that bar. Models like the Ford Maverick Hybrid and the Ford F-150 with PowerBoost® recharge their batteries through regenerative braking and engine power rather than from a wall outlet, so they fall outside the program, no matter how efficient they are on the highway.

That distinction catches many shoppers off guard, and it is better to know before you sign than after. Our team can tell you exactly where any Ford on our lot falls. 

Know the Rules Before You Sign

The electrified lineup at Ford keeps growing, and we can show you every model on our lot that qualifies. A few details decide it.

  • Vehicle must be new

  • Must be titled and registered in Colorado 

We are proud to help the environment, and we are glad Colorado runs an incentive program that puts money back in your pocket when you buy an electrified Ford. Stop by Western Slope Ford to claim your Colorado EV tax credit and save today. 

Frequently Asked Questions

Does Colorado Still Offer an EV Tax Credit?+

Yes. Colorado offers an Innovative Motor Vehicle Credit for qualifying new EVs and plug-in hybrids, subject to current eligibility and program rules. Verify the Colorado EV tax credit details with the Department of Revenue before you complete a purchase or lease.

Is the $4,000 EV Tax Credit Still Available?+

The state amounts described here are $750, plus a possible $2,500 on a qualifying vehicle under the applicable MSRP threshold. Colorado incentive levels are subject to change; see dealer or current Colorado Energy Office and Department of Revenue guidance for details.

Did Colorado Increase EV Incentives to $9,000 After the Federal Tax Credit Expiration?+

Not exactly. The current Colorado state EV tax credit for a new light-duty EV is $750. The $9,000 figure refers to Vehicle Exchange Colorado, a separate income-qualified rebate for eligible residents who retire an old or high-emitting vehicle and buy or lease a qualifying new EV. Check current Colorado Energy Office and Department of Revenue guidance, since the two programs carry different funding, income, vehicle, and transaction requirements.

Can I Claim the Colorado EV Tax Credit on a Used Electric Vehicle?+

No. The Innovative Motor Vehicle Credit applies only to vehicles that are new at the time of purchase or lease, meaning never previously titled or registered in any state or jurisdiction. A low-mileage used EV does not qualify, and neither does one previously registered in Colorado. If you are shopping used, ask about other savings rather than counting on this credit.

Can I Still Get the Federal EV Tax Credit Too?−

No. The federal EV tax credit ended for vehicles acquired after September 30, 2025, so it no longer stacks with Colorado's credit. For a Ford Mustang Mach-E purchased or leased today, the Colorado Innovative Motor Vehicle Credit is the incentive in play. Ask our sales team for the current combined savings picture before you buy.

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  1. Western Slope Ford

    2264 Highway 6 & 50
    Grand Junction, CO 81505

    • Sales: (970) 243-0843
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Western Slope Ford

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