Here’s how you can save $6K by turning in your gas guzzler for a new EV in Colorado

Starting this week, Colorado residents will have the opportunity to save an extra $6,000 toward the purchase or lease of a new electric vehicle simply by turning in their old gas guzzlers. Here’s who is eligible.

Colorado is offering an extra $6,000 for new EVs

Colorado is launching the Vehicle Exchange Colorado (VXC) Program to help incentivize swapping old, air-polluting gas models for new and used electric vehicles.

Applications open on Thursday, August 31, and will help income-qualified Colorado residents partially cover the upfront cost of replacing their gas guzzlers with EVs.

Eligible residents can receive a $6,000 rebate toward the purchase of a new EV (or PHEV) or $4,000 toward a used one. The rebate can be used on top of other state and federal tax credits and rebates, including the $7,500 IRA credit, enabling over $13,500 in savings between the two incentives alone.

The $6,000 EV rebate program is designed to help Colorado meet its goal of achieving 940,000 electric cars on the road by 2030. Currently, the state has around 90,000 or about 15.7 EVs per 1K residents.

Who is eligible?

Meanwhile, there are a few restrictions that apply. After all other rebates, tax credits, and other discounts, the purchase or lease of the new electric vehicle must be under $50,000.

For example, if a new car has an MSRP of $54,000, Xcel Energy’s $5,500 EV rebate would lower the price below the threshold, allowing the buyer to also redeem the VXC credit. Add-ons, upgrades, destination charges, and other fees are not included in the purchase price.

To meet the income qualifications, the household income must be below 80% of the area’s median income (AMI).

For example, if you live in Boulder, a four-person household must make under $106,240 to be eligible for the rebate. You can see the full list of AMI requirements here.

The vehicle being turned in must also be at least 12 years old or fail an emissions test in Colorado (but is still operational). Furthermore, the vehicle must be titled in Colorado, cannot have a lien, and needs to be registered under the participant’s name.

To be eligible, you must be a resident of Colorado, over 18 years of age, income-qualified, eligible to purchase a vehicle in the state, and own a car that passes the requirements.

Those who meet the requirements can apply on the Colorado Energy Office’s Website. The program will begin at 9 a.m. MT on Thursday, August 31.

Ed Piersa, a program manager with the Colorado Energy Office, said transportation is one of the most significant GHG producers in the state (via The Denver Post), explaining the new program is “beneficial to all Coloradans.”

The program will help those who may not otherwise have been able to afford a new EV have a chance to experience the benefits. Meanwhile, the cleaner air from fewer gas guzzlers on the road will help the entire state, according to Piersa.