Colorado Extends $6,000 Plug-in Vehicle Credit Through 2021
Colorado Governor John Hickenlooper Wednesday signed into law a pair of bills relating to plug-in and other alternative fuel vehicles, including a measure to extend a plug-in vehicle tax credit into the next decade. The "Innovative Motor Vehicle Income Tax Credit" (HB1247) passed the Colorado House last week by a 40-21 margin, and will extend Colorado's existing incentive program—which provides up to a $6,000 tax credit toward the purchase of a new plug-in and as much as $7,500 toward a conversion—until 2021.
Joining HB1247 on the governor's desk was the "Special Fuel Tax & Electric Vehicle Fee" (PDF), which established a special tax on electric vehicle registration that has also won the support of EV advocates in the state. The measure is a favorable compromise for plug-in owners after Colorado recently joined a number of other states in seeking to recover lost gas tax revenue from EVs. Where other states are considering fees in excess of $100, or per-mile systems that could be even more expensive to drivers, Colorado adopted a flat $50 annual fee—$20 of which will go toward a fund supporting charging infrastructure.
Unlike other state-level EV incentives, like those in California and Hawaii, Colorado will not cap the number of credits it awards before 2021. This means that unless the state legislature takes action to end the program early, it will be open to as many residents as demand plug-ins in the state.
Colorado Among the Most EV-Friendly States
"With the extension of the alternative fuel programs, we'll see more consumer acceptance and more alternative fueled vehicles on Colorado roadways," said Paul Guzyk of Boulder Hybrid Conversions, in an interview with PluginCars.com. "It's great to see Colorado out in front of other so-called green states." Guzyk previously co-founded 3Prong Power, a plug-in conversion business in Berkeley, Calif., before moving to Colorado, where conversion incentives allow his new business to convert Priuses at a fraction of the cost to consumers.
Earlier yesterday, the Southwest Energy Efficiency Project (SWEEP) released a state government report card that awarded Colorado the top grade in the region for its support of electric vehicles. The state received an A- rating, thanks to twelve policies supporting electric vehicle adoption, including the bills signed into law today.
Colorado's incentives were already "among the most generous in the nation" according to SWEEP, but the $6,000 tax credit had been scheduled to expire in 2015. The extension, coupled with a compromise on annual EV fees, will help the state to continue to its aggressive support EV adoption for years to come.
New to EVs? Start here
What Is An Electric Car?
Before we get going, let's establish basic definitions.
A Quick Guide to Plug-in Hybrids
Some plug-in cars have back-up engines to extend driving range.
Electric Cars Pros and Cons
EVs are a great solution for most people. But not everybody.
Seven Things To Know About Buying a Plug-In Car
A few simple tips before you visit the dealership.
Federal and Local Incentives for Plug-in Hybrids and Electric Cars
Take advantage of credits and rebates to reduce EV costs.
Eight Factors Determining Total Cost of Ownership of an Electric Car
EVs get bad rap as expensive. Until you look at TCO.
Quick Guide to Buying Your First Home EV Charger
You'll want a home charger. Here's how to buy the right one.
Electric Car Utility Rate Plans: Top Five Rules
With the right utility plan, electric fuel can be dirt cheap.
The Ultimate Guide to Electric Car Charging Networks
If you plan to charge in public, you'll want to sign up for charging network membership (or two).
Eight Rules of Electric Vehicle Charging Etiquette
Thou shalt charge only when necessary. And other rules to live by.