Have you been considering making the switch to an electric vehicle? Upcoming changes to the Colorado EV tax credit make now a better time than ever to take advantage of the benefits the Nissan electric cars you’ll find at our dealership have to offer. We’ll tell you everything you need to know about the tax credits available when you purchase an EV, so you can get the best value when buying your vehicle.
EV Tax Credit Changes in 2023
The state government has decided to increase the tax credit available for qualifying purchases of a new EV starting in July 2023. The tax credit will increase from $2,000 to $5,000, more than doubling the tax incentive EV drivers can take advantage of. That effectively makes some EVs as affordable as lower-priced cars.
It’s important to be aware that these changes are time-restricted. In 2025, the tax credit will decrease to $3,500 and continue to go down incrementally, falling to just $500 in 2028. That means you’ll have to make your purchase soon to take full advantage of the tax incentives available to you.
FAQ
How Do Tax Credits Work?
Tax credits are special programs that allow you to reduce your tax burden when filing your taxes. You can claim this credit as long as you made a qualifying new EV purchase within that tax year. This can help reduce the amount you owe in taxes or make you eligible for a tax refund, depending on other factors like your income and the amount of tax you had withheld throughout the year.
Who Is Eligible for the Colorado EV Tax Credit?
Residents of Colorado who made a qualifying purchase of a new EV within that tax year are eligible for the tax credit. It’s important to note you need to pay taxes in Colorado to claim the credit; it isn’t enough to simply purchase the EV in Colorado while living in another state. Qualifying purchases are limited by total price, capped at $55,000 for cars and $80,000 for SUVs.
Why Is There a Tax Credit for EV Purchases?
The government tries to incentivize the purchase of EVs because these vehicles are more eco-friendly than gas-powered vehicles. Reducing EV emissions help the country’s broader effort to decrease carbon dioxide in the atmosphere and slow global warming. EVs also help to reduce noise and air pollution, offering further ecological benefits that the government wants to promote.
Still have questions about the Colorado EV tax credit or the great Nissan electric cars for sale in Longmont, CO, found at our dealership? Our team can’t wait to tell you everything you need to know to make a fully informed purchase for your next ride. Come to Valley Nissan of Longmont today.
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