Polis Administration Announces Increased Incentives for Electric Vehicles

As federal incentives expire, higher rebate amounts will help keep electric vehicles affordable for Coloradans.

DENVER - The Polis Administration announced Thursday an increase in point-of-sale electric vehicle (EV) rebates through the Vehicle Exchange Colorado (VXC) program, helping ensure EVs remain affordable for all Coloradans as federal EV incentives expired on September 30. Starting November 3, 2025, VXC rebates will increase from $6,000 to $9,000 for new EV purchases and leases and $4,000 to $6,000 for used EV purchases and leases.

"The market has made it clear, EVs are here to stay. Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost. I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: get out there right now," said Governor Polis.

A combination of federal tax credits and generous state incentives to purchase/lease EVs has made Colorado a national leader in EV adoption, with more than 200,000 EVs registered in Colorado to date and EVs making up a quarter of new vehicle sales so far in 2025. The VXC program is a key initiative enabling income-qualified Coloradans to access EVs. Since the program launched in summer 2023, more than 2,700 Coloradans have traded in a qualified old or high-emitting vehicle to purchase or lease an EV.

"Transportation is a leading source of emissions in Colorado, making widespread EV adoption essential to achieve our climate goals," said Colorado Energy Office Executive Director Will Toor. "Coloradans have made it clear that they want EVs, and with Congress revoking key incentives that save Coloradans money, we are stepping up. These increased incentives will help ensure EVs stay affordable in Colorado as we work toward nearly 1 million EVs on our roads by 2030."

VXC rebates are available for income-qualified Coloradans exchanging a qualified old or high-emitting vehicle to purchase or lease an EV, which includes both battery electric and plug-in hybrid electric vehicles. The Community Access Enterprise has approved $25.6 million in funding to support this program over the first three years, with additional ongoing funding expected until June 30, 2032. Funding for this incentive increase will come from the VXC program's existing budget for the 2026 fiscal year.

"Through the VXC, we traded in our old 1998 car with 250,000+ miles on it for this new Nissan Leaf! We didn't want to give up our old, cheap, reliable car but this was a trade-in that made it worthwhile and it feels good knowing it reduces our carbon footprint. We've already put 3,000 miles on it and cut our monthly gas by more than half," said VXC participants Monica and Spencer.

More details about program eligibility and how to apply are available on the VXC webpage. Coloradans must apply and receive approval for a rebate before purchasing or leasing an EV from one of more than 170 participating automobile dealers across the state. The VXC webpage and other informational materials are available in both English and Spanish. Coloradans may combine the VXC rebate with other incentives. The increased rebate amounts will only apply for eligible EV purchases/leases made beginning November 3, 2025. Coloradans who are already approved for a VXC rebate and have not yet redeemed it will also benefit from this increase. Additional information about EVs and other financial incentives is available on the EV CO website. Coloradans can also explore incentives through the Colorado Energy Savings Navigator.

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