Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter. With only one dissenting vote, the Colorado Legislature approved HB 1332, which includes a $5,000 point of sale incentive for new, light-duty electric cars, according to the Southwest Energy Efficiency Project. Most importantly, it makes the credits assignable to a auto dealer or finance company, which will effectively turn them into a point of sale incentive.
Unlike tax credits in other locations, Colorado will actually refund money if the credit exceeds the tax owed.
$5,000 on top of the federal tax credit of $7,500 translates to $12,500 - about a third off the median starting electric vehicle price in America. Though, the dealers would be allowed to charge as much as $150 to transfer the credit.
Colorado Automobile Dealers Association (CADA) President Time Jackson wanted the legislation to cap the total vehicle cost at $60,000, intending to ensure that Tesla buyers do not get access to the credits.
However, the simplification of the state's incentive program isn't really the main draw-it is the fact that this new incentive can be applied to a vehicle dealer or finance company, turning it into a point-of-sale incentive.
"It's totally going to hose me", said Luke Walch, owner at Green Eyed Motors in Boulder, which specialized in used electric vehicle sales.
The federal incentive program for all-electric and plug-in hybrid vehicles is a tax credit that maxes out at $7,500 depending on the capacity of the battery used to power the vehicle. The barrier of entry is absurdly high with some electric cars.
The legislation, which is subjected to signature of Colorado Governor John Hickenlooper, is expected to be implemented in the coming days.
The bill had wide support from dealership groups and manufacturers, including bipartisan support in the Legislature.
Source: Electric Cars Just Got $5000 Cheaper In Colorado
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