Unlike previous EV tax credits from the state, which relied on often complicated calculations based on battery size, this is a flat tax applicable to all light-duty EVs. Georgia’s EV credit also used to top out at $5,000, but it was discontinued as of July 1st 2015. What makes Colorado’s incentive even more attractive is that the $5,000 can be assigned to a dealership or finance company at the point of sale. That means that you’d effectively knock $5,000 off the price of a brand new EV at the time of purchase instead of waiting for tax filing time to claim the funds.
This makes “mainstream” EVs like the Tesla Motors Model 3 and the Chevrolet Bolt even more attractive to potential buyers. The Model 3 was first unveiled to the public in late March, but even before the veil was lifted on the entry-level EV, over 100,000 people had already plunked down $1,000 deposits for preorders. As of today, over 400,000 people have preordered the vehicle.
Tesla says that the Model 3 can seat five people, will dash to 60 mph in under six seconds and will travel at least 215 miles per charge. Base vehicles have a rear-mounted electric motor, although there will be dual-motor variants and more powerful engine options (including Ludicrous Mode).
The Model 3 starts at $35,000 and qualifies for a $7,500 federal tax credit. Combine the federal incentive with the Colorado state incentive, and you’re looking at a total outlay of $22,500. So Colorado residents can either lower the purchase price of a base Model 3 or offset the cost of loading up on options (Tesla CEO Elon Musk expects the average transaction price for the Model 3 to be $42,000 before incentives). Model 3 production is expected to start gearing up in late 2017 barring any major hiccups.
If you prefer your EVs to look a bit homelier, the Chevrolet Bolt would also quality for Colorado’s new tax credit, which would take its $37,500 base price down to $25,000 after state and federal tax credits.