Some Coloradans could save big on electric vehicles

Income-based credit adds thousands to existing lucrative discounts

BY MICHAEL BOOTH THE COLORADO SUN

State o cials are putting nishing touches on an electric vehicle rebate for income-quali ed buyers willing to trade in an older gasfueled vehicle, adding up to $6,000 in price cuts on a new vehicle to a menu of credits that can already include $5,500 from utilities or up to $7,500 from federal sources. e program is expected to launch in mid-July, with $2 million in state money over the following 12 months. Colorado is paying for the instant rebates and other EV infrastructure, such as public chargers, with a 6.9-cent portion of the 27-cent delivery fee passed as part of a sweeping 2021 transportation policy and funding bill.

Shoppers who are looking for used EVs and have an old car to trade in could get $4,000 from the new state rebate program, taken o the sale price at the cash register instead of rebated the next time they le taxes. Electri cation advocates say upfront price cuts in the form of instant tax credits are the most attractive for shoppers considering EVs. e dealer then claims the payment from the state. 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. 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. e federal tax credit is “nonrefundable,” meaning it can only o set federal taxes the earner would otherwise pay. ose who are income-quali 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 Colorado Energy O ce said the exact amounts of the tradein 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.

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 trade-in 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.

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.

EPA ozone limits depend on getting 940,000 EVs on Colorado roads by 2030.

“I like the concept,” said Madsen. “Reaching our climate goals will require a broad, society-wide shift in our vehicle eet to zeroemission 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 income-quali 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.

Worship Christ in Spirit & Truth

Sunday Worship: 9:30 am and 3:00 pm

Weekly Bible Studies, Catechism, Praise&Prayer, and Youth Group

Emmanuel Reformed Church

10290 Wadsworth Blvd Westminster

Pastor Steve: 303-667-7194 emmanuelarc.org

Mt Zion Lutheran Church (LCMS)

Sunday Service: 9:30-10:30

Sunday School & Bible Study: 11-12 500 Drake Street Denver, Colorado 80221 303-429-0165

Please visit our website www.mtzionlcms.org 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 ozone-causing emissions from the transportation economy. And signi cant additional credits for new and used EVs can put electrication 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 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. and trails. It’s one piece of a package of public safety legislation rolled out in the 2022 Colorado legislative session aimed at reducing crime.

In ation and the temporary shutdown of the state’s only gas renery, 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.

“ ose improvements alone cannot make a safer community. But those improvements are an indicator that a community is involved in its own well-being,” explained architect Ignacio Correa-Ortiz, an urban planner who helped choose projects for the state to fund.

Twenty-three communities large and small across the state have until the end of June to complete more than $6.2 million in grant-funded projects that authorities say are part of a shift in the mindset around law enforcement and crime prevention.

“We’re really good at responding and arresting somebody for drugs or assaults or thefts or burglaries, but of course they get out of jail and recidivism happens,” said Delta County Sheri Mark Taylor. “We think that through this process we’ll be able to prevent crimes rather than just responding to crimes.” e program’s funding could not be used to hire more o cers, or for projects that are typically used to investigate or solve crimes once they have happened, such as facial recognition programs or license plate reader cameras.

“In my opinion, the future of law enforcement is all in crime prevention,” said Delta County code enforcement o cer Everett Neil.

“ e best way to handle an issue properly is to keep it from happening in the rst place.”

Neil helped to dream up his county’s grant-funded project after neighbors got together and asked the sheri and county commissioners to help them reduce the crime in their community.

He said he suggested the county fund removal of an abandoned mobile home in the neighborhood that had become a draw for criminal activity and drug use. Neil said he also came to believe the remote wilderness near the river drew criminals who believed it was a good place to hide. When he learned the state was funding environmental improvements to reduce crime, his wheels began to turn.

“ at’s when I realized, well, if we’re getting rid of the mobile home, you know what? Let’s do some fencing. You know what, if we’re gonna do fencing, shoot, let’s do some lighting,” Neil said. “Let’s do a bus stop too, for the kids. And so we started brainstorming.”

Before applying for the funds, Neil and the county’s grant writer visited the neighborhood to make sure the community would support the improvements, most of which would occur on private property.

“ e grant writer and I went down to the neighborhood. We knocked on every door. We talked to every resident, and we wanted to know if they would be willing to participate in this kind of a program, because there is some cost,” he said, noting that residents may see slight- ly higher electric bills due to the new lighting. “We were met with 100% buy-in.”

“I can’t tell you how many times [Neil] has been to my door saying, ‘ is is what’s going on. is is where we’re at in the process. What do you think about this? I need your input,’” Burns said. “It’s a rare thing, honestly, to feel that the county is being this responsive.”

Neil said he anticipates the changes will make the neighborhood safer, and he made a bold prediction.

“I fully predict that we’ll be able to reduce the crime in this area through this initiative, at least by 50%,” Neil said.

“It’s something that’s exciting to see and start from the ground up,” Sheri Taylor said. “I hope it works. I hope it’s something that we can use in the future.” is story is from Rocky Mountain PBS, a nonpro t public broadcaster providing community stories across Colorado over the air and online. Used by permission. For more, and to support Rocky Mountain PBS, visit rmpbs.org.