A state program to incentivize electric vehicle purchases will offer more generous rebates in the absence of federal benefits repealed by President Donald Trump’s administration, Colorado officials announced Thursday.

The sweeping tax and spending law passed by Trump and congressional Republicans this year canceled a federal rebate of up to $7,500 for the purchase of electric vehicles, enacted by Democrats under former President Joe Biden. That incentive, which applied to domestically manufactured EVs, expired Sept. 30.

To continue to spur EV adoption, Colorado will boost the incentives offered through its two-year-old Vehicle Exchange Colorado program, which provides rebates for Coloradans who trade in older, high-emitting vehicles for a new or used EV.

Image

“The market has made it clear, EVs are here to stay,” Governor Jared Polis said in a press release. “Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost.”

“I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: get out there right now,” Polis added.

Under the state’s expanded rebates, eligible Coloradans can receive up to $9,000 towards the purchase or lease of a new EV, an increase from $6,000. The maximum incentive for a used EV was raised from $4,000 to $6,000.

To qualify for the vehicle exchange program, an applicant must trade in a gas-powered car that is at least 12 years old or fails an emissions test. Eligibility is also restricted to people with lower incomes, or who are enrolled in at least one state or federal financial assistance program. Full details are available on the Vehicle Exchange Colorado website.

The state says more than 2,600 Coloradans have received rebates through the program since it launched in 2023. The EV rebate program is one of several supported by the Community Access Enterprise, funded through new fees on gasoline sales, EV registrations, rideshare vehicles and more under a major 2021 overhaul of state transportation funding. The EV trade-in program is funded through at least 2032.

Overall, the expiration of consumer rebates and other clean energy programs under Trump and congressional Republicans is projected to cost the average Colorado household $500 a year by 2035, Polis’ office has said.

Officials with the Colorado Energy Office told lawmakers in August that it now projects fewer than 600,000 electric vehicles will be on Colorado’s roads by 2030, far short of the goal of nearly 1 million it first set in 2019. Fully electric vehicles have accounted for just under 20 percent of all new vehicle sales in the first half of 2025, a decline from their peak market share in the second half of 2024, according to the Colorado Automobile Dealers Association.

“Transportation is a leading source of emissions in Colorado, making widespread EV adoption essential to achieve our climate goals,” said CEO executive director Will Toor. “Coloradans have made it clear that they want EVs, and with Congress revoking key incentives that save Coloradans money, we are stepping up.”