Deadline Approaches for Federal EV Tax Credit in Colorado

COLORADO — Coloradans are running out of time to cash in on thousands of dollars in federal tax breaks for electric vehicles. The federal Clean Vehicle Credit, worth up to $7,500 on a new EV and $4,000 on a used one, is set to expire at the end of the month.

Buyers have two options for claiming the incentive: filing for the credit on their tax return or transferring it directly to the dealer for an immediate discount. But to receive the full federal benefit, an eligible vehicle must be purchased or delivered by Sept. 30, 2025 .

The program was created under the 2022 Inflation Reduction Act and was originally expected to run through 2032. However, a recent tax and spending-cut package passed by Congress shortened that timeline, making this the final week to take advantage of t