Colorado releases $6,000 scrappage bonus
Colorado State has issued an EV incentive scheme based on scrapping gas guzzlers. Those eligible for the ‘Vehicle Exchange Colorado’ program will receive point-of-sale rebates of $6,000 toward purchasing or leasing a new electric vehicle.
Even plug-in hybrid vehicles are eligible for $4,000 in discounts for a used one.
“This is a program that is very much designed to help recycle and replace those older high-emitting vehicles with electric vehicles,” said Edward Piersa, program manager at the Colorado Energy Office.
It is limited to residents who receive benefits or have incomes at or below 80 per cent of their area median income. That depends on the county and equates to $69,520 for a single-person household in Denver County or $48,720 in Mesa County, for example.
Colorado tax data showed that more than 80 per cent of the 12,000 households that received a state EV tax credit from 2017 to 2020 reported an annual income of more than $100,000 a year.
“In part due to cost, many low- to moderate-income people in Colorado have not had access to electric vehicles. This program will help bridge that gap,” Piersa said.
About 70 dealerships across Colorado have pre-registered with the state to participate in the EV scheme.
Colorado passed several new EV bills in June this year. One bill increased the state EV tax credit from $2,000 up to $5,000 from July for vehicles with a starting MSRP up to $80,000, with an additional $2,500 tax credit available for vehicles with a suggested MSRP of $35,000 or less.