Colorado Expands Cash-for-clunkers EV Rebates with Additional $9M

In September 2024, Colorado expanded its cash-for-clunkers EV rebate program, highlighting the state’s commitment to accelerating electric vehicle adoption. An additional $9 million fund for 2024-25 was announced for the Vehicle Exchange Colorado (VXC) Program. This was a 60% increase from the initial $5.7 million, demonstrating the program’s success in its first year, as more old, high-emission cars were taken off the road than anticipated.

Vehicle Exchange Colorado (VXC) has made a significant impact in its first year, successfully removing 879 old or emissions-failing internal combustion engine (ICE) vehicles from the state’s roads. Launched on August 31, 2023, the program is designed to help low- and moderate-income residents trade in their older, less efficient vehicles for new or used electric vehicles (EVs).

The program is beneficial for income-qualified buyers, offering an extra $6,000 point-of-sale rebate on top of existing incentives when they trade in an older vehicle for a new EV. For those opting to buy a used EV, they can receive up to $4,000 through the exchange rebate. Combined with federal tax credits and utility rebates, these incentives have the potential to slash the cost of some electric vehicles by more than half, making EV ownership more accessible to a wider range of consumers.

“Expanding the use of electric vehicles is an important part of our work to improve air quality and achieve our climate goals, and we look forward to seeing this funding support more Coloradans,” Colorado Gov. Jared Polis said. 

“The way Coloradans have embraced this program shows the momentum the EV market is having in Colorado, and we’re extremely excited to continue building on its success with additional funding,” said Colorado Energy Office Executive Director Will Toor. 

Vehicle Exchange Colorado (VXC) Program Guidelines

The rebate program’s guidelines emphasize that recipients need to act within a specific timeframe and meet certain criteria to take advantage of the benefits. Here’s a breakdown of the key points:

Redemption Period: Rebate recipients must redeem their rebates within 90 calendar days of issuance. This ensures the process moves quickly and allows buyers to secure their EV purchases in a timely manner.

Household Limitation: Only one rebate is allowed per tax household, preventing multiple claims within the same family or household and ensuring more equitable distribution of funds.

Participating Dealers: Rebates can only be redeemed at participating automobile dealers within Colorado, which likely ensures the program supports local businesses and maintains oversight on which EVs are eligible.

Rebate Limits: The rebate amount is capped at the purchase price of the EV, excluding taxes and shipping costs. This means the rebate can only be applied to the base cost of the vehicle itself, ensuring it doesn’t cover any additional fees or costs that might inflate the overall expense.

More States Should Follow Colorado’s Lead

EVinfo.net commends the state of Colorado for it’s forward-thinking support of the EV transition. We hope more states will follow Colorado’s compelling and admirable lead, offering residents of other states savings on EVs. Doing this will help fight climate change and provide cleaner air for everyone. Helping disadvantaged, low-income communities is key, as these residents are typically the last to benefit from advancements in new technologies.