Starting this week, Colorado residents can apply to get $6,000 for trading in their gas-powered vehicles for an electric vehicle.
This Vehicle Exchange Colorado program distributes the funds as a point-of-sale discount when buying the new EV. About 70 dealerships in Colorado have pre-registered with the state to participate, CPR News reports. The list includes Tesla, Nissan, Volkswagen, and more.
To ensure the funds go to those who need it, qualified applicants must be enrolled in certain income-qualified programs or have an income at or below 80% of their area's median income. "The goal of this program is to increase access to electric vehicles and other zero-emissions transportation alternatives by reducing their upfront costs and making cost less of a barrier," reads the program FAQ.
The trade-in vehicle must be at least 12 years old or fail an emissions test. Fuel efficiency has steadily increased over time, going from 27.3 miles per gallon in 2011 to 31.7 in 2021, according to AutoWeek and the US Office of Energy Efficiency. Taking those older vehicles off the road and replacing them with zero-emission EVs should help reduce greenhouse gases from transportation, which are the second largest source of emissions in the state.
"Multiple studies confirm Colorado will see significant economic benefits with higher levels of electric vehicle (EV) adoption including driver savings, downward pressure on electric rates, and significant reductions in ozone and greenhouse gas (GHG) pollution," says the Colorado Energy Office.
Colorado has a goal of putting 940,000 electric vehicles on the roads by 2030. “We are at approximately 90,000 electric vehicles on the road today," Edward Piersa, program manager at the Colorado Energy Office, tells CPR News.
Buyers can pair this state incentive with federal EV tax credits up to $7,500 on certain vehicles, shaving off $13,500 from the vehicle's cost—or more. "There are numerous combinations or “stacking” possibilities between EV rebate programs, federal tax credits, and state tax credits," says the Colorado Energy Office.