The higher purchase prices of EVs put them out of reach for lower-income car buyers. The state of Colorado is trying to address this issue with a new program that offers rebates to qualifying residents.
The Vehicle Exchange Colorado (VXC) program, which is scheduled to launch in August, is designed to help income-qualified residents replace their old or high-emitting vehicles with EVs by partially covering the up-front cost.
The program is open to Colorado residents 18 years or older who meet at least one of the following income requirements:
- Household income below 80% of the median income in the county where the resident lives, or
- Enrollment in any one of the following financial assistance programs:
- Colorado Affordable Residential Energy (CARE) Program
- Colorado’s Weather Assistance Program (WAP)
- Regional Transportation District (RTD) LiVE
- Federal Section 8 voucher program
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
- State of Colorado Low-Income-Energy Assistance Program (LEAP)
- Supplemental Nutrition Assistance Program (SNAP)
The vehicle to be replaced must be gasoline- or diesel-powered, and it must be at least 12 years old or have failed an emissions test in Colorado. Motorcycles, RVs, campers and boats are not eligible.
Participants may claim a point-of-sale rebate of $6,000 for a BEV or $4,000 for a PHEV. The vehicle may be purchased or leased. Only vehicles with an MSRP or purchase price of $50,000 or less are eligible.
The VXC rebate can be combined with utility EV rebates in addition to federal and state tax credits. The new federal tax credit rules apparently allow dealerships to convert a tax credit to a point-of-sale rebate, so a qualified EV buyer could potentially get a very substantial price break indeed.
Vehicles must be purchased from an authorized auto dealer in Colorado. Dealers interested in participating in the program can fill out the Vehicle Exchange Colorado pre-registration form for automobile dealers.
Questions about the program can be directed to Program Manager Ed Piersa.
Source: Colorado Energy Office