California has long led the way on electric vehicles, but another Western state is challenging the Golden State's top spot.
Between July and September, nearly 25 percent of the vehicles registered in Colorado were electric or plug-in hybrids. In California, that figure was just over 24 percent. It's not enough to crown Colorado the new undisputed leader in EVs, but it's a notable milestone no other state has ever surpassed California in terms of EV registrations, according to James Di Filippo, principal policy analyst at Atlas Public Policy.
It's the culmination of a "pretty dramatic" trend line for Colorado's EV adoption since the start of 2023, Di Filippo said. Coloradans bought just over 41,000 EVs last year, up from roughly 23,000 in 2022.
Governor Jared Polis, a Democrat, announced the accomplishment last week, touting it as a sign of the state's commitment to reaching its climate goals and improving air quality. "This new data shows that demand for EVs continues to increase and especially with competitive state and federal rebates, drastically cutting the cost of an EV and saving people money," Polis said in a press release.
Colorado has some of the most generous incentives for EV sales in the country, Di Filippo said. Its policies and incentives have helped make the cars more affordable, while the state's investments in charging infrastructure have made owning an electric car more practical.
All Coloradans can receive a $5,000 state tax credit for purchasing or leasing a new EV or plug-in hybrid priced up to $80,000. That credit is available through the end of this year, then will decrease to $3,500 starting in 2025. EVs valued under $35,000 are eligible for an additional tax credit of $2,500 for a total potential state credit of $7,500.
Through the Vehicle Exchange Colorado program, income-qualified residents can trade in old or highly polluting gas cars in exchange for a $6,000 rebate to put toward a new EV or plug-in hybrid purchase or lease, or $4,000 for a used one.
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