Federal EV Tax Credit Update
Recent legislation passed by Congress on July 3, 2025, has accelerated the expiration of federal electric vehicle (EV) tax credits. Both the $7,500 credit for new EV purchases or leases and the $4,000 credit for used EVs will now expire on September 30, 2025. This ends the extensions originally planned under the Inflation Reduction Act, which had set these incentives through 2032.

To qualify for these credits, you must purchase or lease and take delivery of your vehicle by September 30, 2025. These credits can be applied directly at the point of sale through dealer assignment.

In addition to the federal tax credits, Colorado offers state incentives to support EV ownership. Eligible new battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) with a manufacturer’s suggested retail price (MSRP) of $80,000 or less qualify for a $3,500 state credit. Vehicles with an MSRP of $35,000 or less may qualify for additional incentives.

These state credits are applied at the dealership and can be combined with federal incentives to increase your savings.

The VXC program helps income-eligible Coloradans trade in older, high-emission vehicles for rebates on new or used EVs. This initiative encourages cleaner air and more affordable EV access.
Eligibility includes:
Colorado residency, age 18 or older, with a valid Colorado driver’s license and address

Household income at or below 80% of the Area Median Income (AMI) or enrollment in qualifying assistance programs (such as SNAP, SSI, Medicaid)

The vehicle being traded in must be at least 12 years old or fail emissions testing, and it must be currently titled and lien-free in your name with the Colorado DMV

Rebates available:
$6,000 for new BEVs and PHEVs

$4,000 for used BEVs and PHEVs

New EVs must have an MSRP of $80,000 or less. Used EVs must have a final negotiated price of $50,000 or less. These rebates are point-of-sale discounts available at participating dealerships and can be stacked with federal and state credits.

Discover the potential savings available through various EV incentive programs. The Federal EV Tax Credit offers up to $7,500 for new electric vehicles and $4,000 for used ones, available until September 30, 2025. Colorado State Credit provides up to $3,500, with its availability subject to change. Additionally, the Vehicle Exchange Colorado Program offers $6,000 for new vehicles and $4,000 for used, active through 2032. In total, you could save up to $17,000 on your next electric vehicle purchase.

At Schomp Nissan, we’re here to help you navigate these savings opportunities and find the electric vehicle that fits your needs. Remember, to secure the federal tax credits, your purchase or lease must be completed with delivery by September 30, 2025.
Visit us at Schomp Nissan if you are looking for an Electric Vehicle, in Denver, Littleton, Lakewood, Highlands Ranch or anywhere in the Denver area or contact our sales team today to learn more about our electric vehicle lineup, including the Ariya and Leaf, and available incentives.