There’s never been a better time to purchase Volkswagen electric cars here in our area. Starting in July of 2023, Colorado residents will be eligible for an increased tax credit for their electric vehicles. Read on for more information about this tax credit, so you can make the most out of your next automotive purchase.
What Is Changing About the Colorado EV Tax Credit?
Beginning in July of 2023, the amount of the tax credit offered to Colorado residents purchasing EVs will be increased from $2,000 to $5,000. This major change offers a huge incentive to buy an EV for your next vehicle.
It’s important to note that this increase won’t last forever. The incentive is set to decrease to $3,500 starting in January 2025. The incentive will continue to decrease incrementally from that point onward until only $500 in 2028. This is a great time to consider an EV for your next vehicle.
How Does the EV Tax Credit Work?
If you make a qualifying purchase of a new EV, you can claim the EV tax credit when filing your taxes that year. This helps to reduce your tax burden, saving you money that can be allocated to other areas of your budget.
In addition to the Colorado state government’s tax credit, drivers are also eligible for a $7,500 tax credit through the federal government for new EV purchases. You could reduce your tax burden by as much as $12,500 between the state and federal tax credits.
Are There Any Restrictions on the EV Tax Credit?
This tax credit is available to people paying taxes in the state of Colorado. There are also limitations on the MSRP of the electric vehicle that you purchase. To qualify for the tax credit requirements, your purchase must not exceed $55,000 for cars or $80,000 for SUVs.
What Is the Reason for the EV Tax Credit?
Tax credits for EVs are intended to incentivize the purchase of this class of vehicles. Because EVs are more environmentally friendly, the government wants to encourage drivers to purchase them as part of reducing our national carbon footprint. There are a number of other environmental benefits of EVs as well, including improving air quality and reducing noise pollution and the huge savings you’ll earn on fuel costs.
Interested in checking out our Volkswagen electric cars for sale in Greeley, CO? When you meet our team, we can give you more information about the EV tax credit and the outstanding electric vehicles in our inventory. Come to Greeley Volkswagen today and learn everything you need to know about electric vehicles.
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