Electric Vehicle Financial Incentives: An Overview
Electric vehicle sales in the Denver-Boulder metro area and around the country continue to grow. Helping to bolster this movement, state and federal revenue departments, and regional utility companies are playing a role making these investments more financially palatable. In our area, Xcel Energy, the State of Colorado, and the IRS are all participating with various rebates, programs, and tax incentives that may be available to qualified homeowners and customers. In this blog post, we’d like to provide a variety of online sources to help our readers learn more.
A friendly disclaimer, right off the bat: Our team at Save Home Heat Company is not authorized to answer specific questions regarding the Xcel electric vehicle programs or incentives. In these cases, Xcel requires that the customer work directly with them. Regardless, we’ll get you to the right web pages to learn more and help get you started.
And of course, we are not tax advisers! Please speak with your trusted tax pro to discuss EV-related tax credits that might be available for you. Again, we’ll get you to the right places to help get you going.
What Types of EV Financial Incentives are Available in the Denver-Boulder Area?
There are two main types of incentives that may be available for qualifying individuals and electric vehicles in the Boulder-Denver metro area: tax credits from the federal and the state governments; and rebates and other programs offered by our primary utility provider in our area, Xcel Energy. Following is a summary of some key incentives, with links to trusted sources of more information.
Electric Vehicle Tax Credits
A variety of federal and state tax credits may be available for EV-related expenses.
Federal EV Tax Incentives
The IRS offers federal tax credits for qualifying “new clean vehicles” purchased in 2023 or later to qualifying individuals. Clean vehicles are defined by the IRS as electric vehicles (EVs) or fuel cell vehicles (FCVs). The potential tax credit is up to $7,500 and is available to both individuals and businesses. Of course, there are requirements for those who qualify, as well as for the vehicle they purchase.
To learn more, visit the IRS website.
Colorado State Tax Credits for EVs
A Colorado state tax credit may be available for qualifying electric vehicles titled and registered in Colorado. The tax incentive may be anywhere from $1,500 to $10,000, covering a range of electric vehicles from light-duty EVs at the lower end of tax credit range, to heavy-duty electric trucks. Leasing, as well as purchasing, are covered in the descriptions we’ve reviewed. Visit the U.S. Department of Energy (DOE) Alternative Fuels Data Center web page for Colorado to learn more and find other helpful links.
Xcel Energy Electric Vehicle Rebates & Programs
In keeping with Xcel Energy’s practice of offering incentives to help reduce fossil fuel consumption, Xcel is also active in the field of electric vehicles.
EV Charging Station Wiring Rebate from Xcel
If you have an electric vehicle, installing a Level 2 charging station on your property gives you the ability to charge quickly and conveniently at home. Xcel Energy offers an EV Charger and Wiring Rebate for eligible customers to help offset the cost of the installation. Eligible customers can save up to $500, and income-qualified customers my receive a rebate up to $1,300. There are specific requirements to obtain a rebate; visit Xcel’s website to learn more about qualifications and how to apply for one.
Xcel Rebates for Electric Vehicle Purchase or Lease
Xcel’s Income-Qualified Electric Vehicle Rebate program provides potential rebates of $3,000 for a used EV or $5,500 for a new EV when the vehicle is purchased or leased at a Colorado car dealer. As with virtually all rebates and tax credits, there are specific eligibility requirements for the individuals and for the EVs. To find out what “income-qualified” means, and other details, visit Xcel’s rebate program web page.
Xcel Energy EV Charging Programs
Lastly, Xcel Energy also offers EV charging programs. These are not rebates—they are options for working with Xcel on different electrical billing structures for home EV charging. Many of these require customers to charge their EV during off-peak hours. Learn more about Xcel EV charging programs.
Install an Electric Vehicle Charging Station at Your Denver-Boulder Home
If you already own an electric vehicle or you’re considering purchasing or leasing one, our highly skilled electrical team at Save Home Heat provides quality, professional installation or pre-wiring for Level 2 EV home charging stations, with the documentation you’ll need to obtain an Xcel EV charging station wiring rebate. We install owner-supplied charging stations, and depending on the application, can provide quality chargers from our supply network. We install EV chargers for light commercial applications, as well.
Each charging station installation – along with the entire range of home electrical work that we perform on a regular basis – is overseen by our staff Master Electrician. All work is done in complete accordance with National Electrical Code (NEC), local code, and all manufacturer requirements.
For more information about installing an EV charging station on your property, or to receive a friendly, low-pressure quote, please contact our team at Save Home Heat Company today.