Colorado will reduce EV Tax Credit to $3,850 (from $5,350) in 2025

Tesla is sending notifications to EV owners in Colorado to hurry and grab the $5,359 Innovative Motor Vehicle Tax Credit as it plans to slash the overall state subsidy by half.

Based on the initial state subsidy, Colorado residents can buy a new Tesla Model 3 or Y with up to $5,350 off the price when they finance or lease a new vehicle.

Model 3, Y, S, and X buyers can combine this subsidy with the Federal tax incentive of $7,500 taking the total savings on a new model to $12,850 on a new purchase. This offer is available with financing of up to 72 months and an MSRP ceiling of $80,000.

Colorado EV tax credit reduction to $3,850

Credit Reduction

Starting January 1, 2025, the EV tax credit will be reduced to $3,850 from $5,350. Afterward, the collective incentive including Federal tax credit will be $11,350.

People taking delivery of a new qualifying Tesla by December 31, 2024, can still receive a $5,350 incentive at the point of sale.

(source)