ELECTRIC

FROM PAGE 1 for shoppers considering EVs. e dealer then claims the payment from the state. is month, the Colorado Energy O ce said the proposed $5,000 state credit could be expanded by up to another $2,500 if the legislative package passes, for vehicles priced under $30,000. at extra amount is intended to ll gaps for vehicles that don’t qualify yet for the full $7,500 federal credit because not enough of their parts are made in the U.S., a CEO spokesperson said. e state’s gap- ller will boost lower-income buyers while the automakers revamp their assembly systems.

State o cials also announced a package of forthcoming energy and climate bills for the current legislative session that could add even more to those incentives. Colorado currently o ers a $2,000 state tax credit for new EVs, no trade-in required, and elements of the bill package could increase the state’s credit to $5,000.

Not all the credits and rebates will be stackable, though state o cials are at pains to de ne how they can combine. Not all those decisions have been made. Further confusing the matter is that the existing, about-to-be-expanded state credit for new cars without a trade-in will be refundable, meaning quali ed buyers could wipe out all of their state tax obligation and get a cash refund back.

An income quali ed customer making the trade-in could theoretically combine the $6,000 state tradein rebate for a new car, a $5,000 state tax credit, and a $7,500 federal tax credit expanded this year, for a total of nearly $19,000 o a new EV. Xcel Energy and Black Hills o er a $5,500 rebate for income-quali ed buyers of new EVs, which are stackable with the trade-in rebate but not stackable with the State EV tax credit— customers may have to choose. e federal tax credit is “nonrefundable,” meaning it can only o set federal taxes the earner would otherwise pay. ose who are incomequali ed for the new state trade-in credit might not pay enough in federal taxes to bene t from the full $7,500 federal credit. e car being traded in must be a 2011 model or older, or have failed Colorado emissions tests. e trade-in program, dubbed Vehicle Exchange Colorado, takes on multiple goals of state o cials and environmental justice advocates. Taking older, higher-polluting gas vehicles o the road can be one of the quickest ways to reduce ozonecausing emissions from the transportation economy. And signi cant additional credits for new and used EVs can put electri cation in reach for far more households, as Colorado agencies work to transform the collective vehicle eet to run on cleaner electricity. e state’s greenhouse gas reduction plan and e orts to come under EPA ozone limits depend on getting 940,000 EVs on Colorado roads by 2030. e Colorado Energy O ce said the exact amounts of the trade-in credits have not been set, but community presentations mention the $6,000 toward a new EV and $4,000 toward a used EV. More details should be set by April, when the Community Access Enterprise board related to the Colorado Energy O ce will see a nal plan. e price of the used EV must be more than the rebate amount, and a new EV cannot be priced higher than $50,000. ere are a limited number of lower-priced EVs currently on the market, but the Chevy Bolt sells for about $26,000 to $28,000 before tax credits. is story is from e Colorado Sun, a journalist-owned news outlet based in Denver and covering the state. For more, and to support e Colorado Sun, visit coloradosun.com. e Colorado Sun is a partner in the Colorado News Conservancy, owner of Colorado Community Media.

Some customers will be in the sweet spot of combining a number of the rebates and credits for a qualifying car, said Travis Madsen, transportation program director for the Southwest Energy E ciency Project.

“So, the total stackable amount could be in the $20,000-plus range for a purchase that met all eligibility criteria,” he said.

“I like the concept,” said Madsen.

“Reaching our climate goals will require a broad, society-wide shift in our vehicle eet to zero-emission technology and fuel. e upfront purchase cost of a vehicle is one of the largest obstacles we face,” he said. e state’s program should help push EVs out to people at di erent income levels, Madsen said.

Fully electric and plug-in hybrid vehicles would qualify, under current plans. e income criteria involve the household being below 80% of the area median income, or be participating in another incomequali ed program such as Medicaid.

As an “area median” example, in Denver a household would qualify for the trade-in EV credit if a single person was making less than $62,600, or a family of four made less than $89,400.

Dozens of new EV models from all the major car manufacturers are expected to hit the market in the next year or two. Some have lowered prices as batteries get cheaper or companies want to get under the price caps to qualify for tax credits. Expansion of tax credits and rebates at multiple levels makes the annual cost calculation better than ever, Madsen said, noting that transportation costs can eat up to 20% of a lower income family’s budget.

In ation and the temporary shutdown of the state’s only gas re nery, Suncor Energy, pushed gas prices to $4 a gallon and means the typical Denver metro household is spending about $3,000 a year on gas, Madsen said. Given current o -peak electricity prices, at 16,580 miles driven a year, an EV like the Bolt would save a family $2,400 on fuel, Madsen calculated.

Plus, there are no expensive oil changes and little other maintenance besides tires.

“So if a low- or moderate-income person can get their hands on one, they o er meaningful savings that can help improve their nancial position,” Madsen said.