As Colorado continues to lead in the transition to sustainable transportation, many residents are taking advantage of the federal electric vehicle (EV) tax credit. But big changes are coming. After nearly 20 years, the EV tax credit ends on September 30, 2025, dramatically shifting the landscape for those considering the switch to electric.
In this article, we break down what this change means for Colorado drivers, how it impacts your EV charger installation decisions, and what steps you should take before the deadline hits.
What Is the EV Tax Credit?
The federal EV tax credit has been a cornerstone of clean energy policy in the U.S. Designed to reduce the upfront cost of electric vehicles, the incentive allowed qualified buyers to receive up to $7,500 back on their federal tax returns. This has been especially beneficial for drivers purchasing brands like Tesla, Rivian, and Chevrolet.
Over time, however, eligibility rules have changed. Currently, only certain models qualify based on battery sourcing, vehicle assembly, and manufacturer caps. With the program ending this September, the window to benefit from these savings is closing quickly.
Why Is the EV Tax Credit Ending?
According to the EPA, the expiration of the EV tax credit is part of a broader reevaluation of national emissions and energy strategies. Learn more about the regulatory developments that led to this decision.
This change doesn’t just affect consumers—it also impacts automakers and installers. Government-issued credits have supported Tesla and other EV makers for nearly two decades, helping grow the EV market from a niche industry to a dominant force in the auto world.
What Colorado Residents Need to Know
Colorado has consistently ranked as one of the top states for EV adoption. With a strong push from local utilities and state tax incentives, residents here enjoy unique benefits when going electric. But with the federal tax credit ending, it’s more important than ever to act fast.
1. Timing Matters
To qualify for the expiring tax credit, your electric vehicle must be delivered and placed in service before September 30, 2025. Simply placing an order or making a deposit is not enough. If you’re planning to purchase a new Tesla or any qualifying EV, do so immediately to secure your rebate.
2. Install Your EV Charger Now
If you’re going electric, you’ll need a reliable and efficient Level 2 home charger. Fortunately, Colorado residents have access to tesla certified installers who can help you get set up before your new vehicle arrives.
With increased demand leading up to the deadline, booking a professional installation early can save you both time and stress. A home charger not only adds convenience but can also increase your home’s property value.
3. Work With Local Experts
Choosing local professionals familiar with EVs ensures your installation complies with Colorado building codes and utility rebate programs. If you’ve searched for “tesla electricians near me,” look no further than EZ EV Electric. Our team understands Tesla’s technology, and we’re ready to help you transition smoothly.
Who Qualifies for the EV Tax Credit?
To qualify, you must:
- Purchase a new electric vehicle that meets federal standards
- Have a federal tax liability equal to or more than the credit amount
- Ensure the car is delivered before September 30, 2025
Colorado residents can also stack this credit with state-level incentives, though those may also change after the federal program ends.
What About Used EVs or Leases?
Unfortunately, the expiring tax credit applies only to new vehicle purchases. Used EVs and leased vehicles generally do not qualify, though some dealership-specific offers may help bridge the gap. Speak to your tax advisor or dealership for the most accurate and current eligibility information.
Common Misconceptions
“I can still claim the credit after September 30 if I order before then.”
Wrong. The credit only applies when the vehicle is delivered and placed in service before the deadline.
“Tesla vehicles no longer qualify.”
Not true. Several Tesla models still qualify under the current guidelines. Check the manufacturer and IRS websites to confirm your specific vehicle’s eligibility.
The Smart Move: Combine Vehicle Purchase with Charger Installation
There’s never been a better time to go all-in on electric mobility. Whether you’re purchasing your first Tesla or adding another EV to your household, combining your purchase with a proper installation ensures you’re fully prepared.
By using experienced, licensed tesla certified electricians, you avoid common pitfalls and gain peace of mind. Visit https://www.ezevelectric.com/ to learn more or to request a quote.
How EZ EV Electric Can Help
At EZ EV Electric, we specialize in EV charging solutions tailored to Colorado homeowners. From Boulder to Colorado Springs, our licensed electricians bring technical expertise and prompt service right to your doorstep.
We understand that choosing an EV and home charger is a major investment. That’s why our team of trusted No. 1 Certified Tesla installer in Colorado will walk you through the process, ensuring your installation meets both manufacturer and code requirements.
Final Thoughts: Take Action Now
The federal EV tax credit has played a pivotal role in making electric vehicles more accessible and affordable for Americans. As this program sunsets, it marks a shift in how the U.S. supports clean energy transportation.
We strongly recommend acting now:
- Research and purchase your qualifying EV
- Schedule charger installation with a certified professional
- Ensure vehicle delivery before September 30, 2025
Don’t wait until the last minute. Supply chain constraints and installer availability could delay your plans.
For questions, quotes, or consultations, contact EZ EV Electric today.
