Colorado’s $7,500 EV Credit: 5 Models That Actually Qualify for the Sub-$35k Bonus (2025 Guide)
Let's be real. You see "Colorado EV Tax Credit" and your eyes light up. You hear it could be up to $7,500. Then you read the fine print and see the extra $2,500 bonus credit is only for vehicles with an MSRP... under $35,000.
And you laugh. Or cry. What new EV, in 2025, costs less than $35k? It feels like a classic bait-and-switch, a government program designed to look good on paper but be impossible in practice. You start thinking, "Fine, I'll just settle for the standard $5,000 credit."
Stop right there. I fell down this rabbit hole myself, fueled by coffee and a deep-seated hatred of leaving money on the table. And I have good news: it's not impossible. It's just complicated, and frankly, badly explained by almost everyone.
That $35k cap is the key to unlocking the full $7,500. And the even better news? Thanks to a new rule, you don't have to wait until tax season to get that money. You can get it as instant cash at the dealership. This is the "dealer assignment" part, and it changes the entire game.
In this guide, I'm going to break down exactly how this works, what "MSRP" really means, and give you a hard list of the 2024/2025 models that actually qualify. You are not crazy—they do exist.
The "Instant Cash" Part: Why Dealer Assignment Changes Everything
First, let's talk about the best part. Before 2024, you'd buy your EV, pay the full price (minus any federal credit), and then have to wait until you filed your Colorado state taxes the next year to get that $5,000 or $7,500 back as a tax credit. If you didn't owe that much in state taxes, you'd have to carry the credit forward for up to five years. It was messy and favored people with high tax liability.
Not anymore.
Thanks to the new "dealer assignment" option (officially part of HB23-1272), you can now transfer (assign) your credit directly to the dealer at the point of sale. The dealer gets the credit from the state, and you get the full amount as an immediate discount or cash rebate. No waiting, no tax forms, no complicated math. You just sign a form, and $7,500 vanishes from your purchase price.
This is the "cash on the hood" moment. It turns a "tax credit" into a "rebate."
The Only Catch: The dealer must be registered with the Colorado Department of Revenue (DOR) to offer this. Most large franchise dealers are, but you must ask them upfront: "Are you registered to accept the Colorado EV tax credit assignment at point of sale?" If they say no, find another dealer.
Decoding the Colorado EV Tax Credit $35k Cap (It's Not a Trap)
Okay, let's get into the weeds. This is where everyone gets confused. Here is the simple math for the Colorado Innovative Motor Vehicle (IMV) Credit for vehicles purchased in 2025:
- Standard Credit: You get $5,000 for a new qualifying EV with an MSRP up to $80,000. (This is the one most people get.)
- The Bonus Credit: You get an additional $2,500 if that new EV's MSRP is $35,000 or less.
Total possible credit: $5,000 + $2,500 = $7,500.
The magic word here is MSRP (Manufacturer's Suggested Retail Price). This is not the "out-the-door" price. It is not the price after destination charges, taxes, dealer handling fees, or that $500 "paint protection" they try to sell you.
The MSRP that matters is the base vehicle price listed on the official window sticker (the Monroney label). This is the number the state of Colorado looks at. Period.
Quick Disclaimer: I'm a professional researcher and writer obsessed with this stuff, but I am not your tax advisor or lawyer. Tax laws are slippery and change. Always, always confirm these details with the Colorado Department of Revenue website or a qualified tax professional before signing on the dotted line. This is your money, so do that final check.
So, the entire quest is to find a new 2024 or 2025 model EV where the base MSRP on the window sticker is $35,000 or less. You'd think this list is empty. It's not.
The 2025 "Unicorn List": 5 EVs That Actually Qualify for the $7,500
I've spent hours digging through manufacturer sites, 2025 pricing announcements, and dealer inventory. Here are the "unicorns"—the new EVs that have at least one trim level with a base MSRP of $35,000 or less, making them eligible for the full $7,500 instant rebate.
(Note: Prices are based on the latest 2024/2025 model year announcements and can change. Destination fees are not included in this MSRP, as per the law.)
1. The Volvo EX30 (Core Trim)
Approx. Base MSRP: $34,950
This is the one. The Volvo EX30 feels purpose-built to snag this exact credit. It's a premium, stylish, safe (it's a Volvo) small SUV that just squeaks in under the wire. The base "Core" trim starts at $34,950, making it eligible. This is, in my opinion, the single best deal on the market when you combine the $7,500 state credit (and potentially the federal one). The challenge? Finding one. They are in high demand, but they are being delivered to Colorado dealers. Get on a waitlist if you have to.
2. The Hyundai Kona Electric (SE Trim)
Approx. Base MSRP: $32,675
The newly redesigned 2024/2025 Kona Electric is a fantastic vehicle. It looks futuristic, has a solid range (around 200 miles for the standard range SE), and comes packed with tech. The base "SE" trim starts comfortably under $35,000. This isn't some stripped-down compliance car; it's a fully-featured crossover that becomes outrageously cheap after the $7,500 credit.
3. The Nissan Leaf S
Approx. Base MSRP: $28,140
The OG. The Nissan Leaf has been around forever, and while its 149-mile range and CHAdeMO fast-charging port are dated, you absolutely cannot beat the price. With a base MSRP under $29k, it qualifies for the $7,500 credit with room to spare. If you're looking for a reliable, no-frills second car or a city commuter, a brand new Leaf S for a net price in the low $20s (after the state credit) is ridiculously good.
4. The MINI Cooper SE (Base Trim)
Approx. Base MSRP: $30,900
Want style? Want to have fun? The all-electric MINI Cooper SE Hardtop 2 Door is a blast. Its range is low (around 114 miles), so it's strictly a city car. But it's a MINI. It's sporty, iconic, and feels premium. The base "Classic" trim starts well under the $35k cap. If you want a fun-mobile and have another car for road trips, this is an incredible option.
5. The Fiat 500e
Approx. Base MSRP: $32,500
Returning to the US market, the new Fiat 500e is all-electric and all-style. Like the MINI, it's a small city car (around 149 miles of range) but it's dripping with Italian charm. The base "INSPI(RED)" trim is priced to move and slides right under the $35k cap. It's a perfect urban runabout that becomes a massive bargain with the full state credit.
What about the Chevy Bolt?
Ah, the Bolt. The long-time king of the sub-$35k EV. Production of the 2023 Bolt EV and EUV ended in December 2023. You might find a new 2023 model still sitting on a lot, and it absolutely qualifies. But finding one "new" in 2025 is highly unlikely. The new Bolt is coming in 2026, so we're in a gap year.
The MSRP Minefield: How to Not Get Disqualified by a $100 Add-On
This is the "trusted operator" warning. This is where your $7,500 dream can die right in the finance office. You must understand the difference between two stickers on a new car:
- The Monroney Sticker (The Official One): This is the legally required window sticker from the manufacturer. It lists the base MSRP, factory-installed options, and the destination charge. This is the only sticker the State of Colorado cares about.
- The Dealer Addendum (The Unofficial One): This is a second sticker the dealer slaps on. It lists high-profit junk like "Nitrogen Tires ($199)," "Pinstripes ($299)," and "Desert Protection Package ($1,499)."
The dealer addendum junk DOES NOT count toward the MSRP for the tax credit... unless the dealer is sneaky.
Some dealers try to roll their "add-ons" into the official-looking price. The key is to demand to see the original Monroney sticker and a Buyer's Order that breaks out the "MSRP" as a separate line item. If that line item is $35,000 or less, you are golden. You can (and should) refuse to pay for the dealer add-ons, but even if you do, they should be listed separately from the MSRP.
Real-World Example: You find a Volvo EX30 Core with an MSRP of $34,950. It qualifies. The dealer adds a $995 "clear bra" on a separate sticker. The total price is $35,945. You still qualify for the $7,500 credit because the MSRP is still $34,950. Don't let them tell you otherwise.
Your Pre-Purchase Checklist (Print This Out)
Going into a dealership can be overwhelming. Here is your simple, four-step plan. Do not deviate.
- Step 1: Confirm the Dealer. Before you even test drive, ask your salesperson: "Are you registered with the Colorado DOR to offer the point-of-sale EV credit assignment?" If they look confused or say "no," thank them for their time and leave.
- Step 2: Find the Car & Get the Sticker. Identify one of the models above. Ask to see the Monroney (manufacturer) window sticker. Take a picture of it with your phone.
- Step 3: Verify the MSRP. Look at the sticker. Find the "Base MSRP" line. Ensure that number is $35,000 or less. If it is, you've found your unicorn. (Note: factory-installed options do raise the MSRP. You need a base trim with no factory options to be safe).
- Step 4: Sign the Form. In the finance office, you will sign a state-provided form (the "IMV Credit Assignment Form"). This form officially transfers your $7,500 credit to the dealer. In return, that $7,500 must be applied as a reduction in your purchase price or as a cash payment to you.
That's it. You just saved $7,500, instantly.
Infographic: The 2025 Colorado EV Credit Flowchart
Your 2025 Colorado EV Credit: Explained
Follow the path to see your instant rebate.
| START: You buy a new, qualifying EV in Colorado. |
| ↓ |
| QUESTION 1: What is the vehicle's MSRP? (The base price on the manufacturer's window sticker) |
| IF: $35,000 or Less ↓ YOUR CREDIT:
$7,500
($5,000 base + $2,500 bonus) | IF: $35,001 - $80,000 ↓ YOUR CREDIT:
$5,000
(Base credit only) |
| ↓ |
| QUESTION 2: Is your dealer registered for Point-of-Sale assignment? |
| IF: YES (Recommended!) ↓ Get your credit as an INSTANT REBATE! | IF: NO ↓ You must claim the credit on your CO tax return next year. |
Don't Forget the Federal Credit! (The Other Instant Rebate)
This is where it gets really good. The $7,500 Colorado credit is completely separate from the $7,500 Federal Clean Vehicle Credit. And just like the state credit, the federal credit can also be transferred to the dealer for an instant rebate.
This means, on the right car, you could get $7,500 (State) + $7,500 (Federal) = $15,000 off at the point of sale.
Now, the federal credit has much stricter rules that are harder to meet:
- Income Caps: You must be under $150k (single), $225k (head of household), or $300k (married) in income.
- MSRP Caps: $55,000 for cars, $80,000 for SUVs/Trucks.
- Battery & Sourcing Rules: This is the killer. The car must be assembled in North America, and its battery components must come from specific countries.
Because of these rules, some of the cars on our sub-$35k list might not qualify for the federal credit (e.g., the Hyundai Kona and Volvo EX30 are not assembled in North America for the 2024/2025 models I've seen). However, some, like the Nissan Leaf (if built in Tennessee), might qualify for a partial federal credit ($3,750).
The rules change constantly. Your best bet is to check the list on Fueleconomy.gov, which is the official source.
The key takeaway: Even if a car doesn't qualify for the federal credit, it still qualifies for the Colorado one. They are not linked.
Trusted Resources (Don't Just Take My Word for It)
This stuff is complex. I'm standing on the shoulders of data from official sources. Please, bookmark these and check them yourself.
❓ Frequently Asked Questions (FAQ)
1. What is the $35,000 Colorado EV credit cap exactly?
It's an additional credit. All qualifying new EVs with an MSRP up to $80,000 get a $5,000 state credit. If the vehicle's MSRP is $35,000 or less, you get an extra $2,500, for a total of $7,500. It's a bonus, not a cliff.
2. Does the destination fee count towards the $35,000 MSRP?
No. According to the Colorado DOR, the MSRP for this credit excludes destination charges, taxes, and fees. It is the "base price" of the vehicle. This is a huge win and what makes qualifying possible.
3. Can I get the credit if I lease an EV?
Yes! This is a fantastic part of the law. If you lease a qualifying EV, the credit goes to the leasing company (the lessor), but they are required to pass the full value of the credit ($5,000 or $7,500) on to you as a capitalized cost reduction. It effectively makes your lease payment much cheaper. The $35k cap still applies.
4. What about used EVs?
Yes, but the rules are different. There is a separate Colorado tax credit for used EVs. It's worth $1,500 for a used EV with a purchase price of $25,000 or less. This credit can also be assigned to the dealer for an instant rebate. It's not $7,500, but it's still great.
5. Does Colorado have an income cap for the EV credit?
No. Unlike the federal credit, the Colorado Innovative Motor Vehicle Credit has no income limitations. It doesn't matter if you make $50,000 or $5,000,000; you are eligible for the credit.
6. What happens if my dealer isn't registered for the point-of-sale transfer?
You can still buy the car, but you will have to pay the full price upfront and then claim the $5,000 or $7,500 credit on your Colorado state tax return (Form DR 0617) at the end of the year. It's more hassle, and your money is locked up for months. I strongly recommend finding a registered dealer. See section 1 for why this matters.
7. What if the base model is $34,900 but I add factory-installed heated seats for $500?
You would be disqualified. Factory-installed options are part of the final MSRP on the Monroney sticker. In this case, your new MSRP would be $35,400, bumping you out of the $2,500 bonus. To get the credit, you must buy a vehicle where the final manufacturer's sticker price is $35,000 or less.
My Final Take: Is This $35k Hunt Worth It?
One hundred percent, yes.
This isn't some tiny $50 rebate. This is an extra $2,500. When combined with the base $5,000 credit, you're looking at $7,500. On a $34,950 Volvo EX30, that's an instant 21% discount. It brings the effective price of that brand-new car down to $27,450 (before taxes and fees).
That's not just a good deal; it's a market-breaking deal. It makes a new, safe, warrantied EV cheaper than most 3-year-old used cars.
The $35,000 cap isn't a trap; it's an incentive. It's the state's way of encouraging automakers to actually sell affordable EVs here. And for 2025, it's finally working. The "unicorns" are in the pasture.
The challenge isn't the price. It's the knowledge. It's knowing which models qualify, knowing what "MSRP" means, and knowing to demand the point-of-sale assignment from your dealer.
You now have that knowledge. Take this list, walk into that dealership informed, and go get your money. Happy hunting.
Colorado EV tax credit $35k cap, Colorado EV tax credit 2025, dealer assignment EV credit, qualified EV models Colorado, Innovative Motor Vehicle Credit
🔗 The 5 Best Used Electric SUVs Under $30,000 (2025) Posted Oct 2025 UTC 🔗 Safest Electric Cars (2025) Posted 2025-11-04 23:46 UTC 🔗 Rivian R2 Interior (2025) Posted 2025-11-02 23:13 UTC 🔗 Rivian Showroom NYC (2025) Posted 2025-10-31 11:20 UTC 🔗 Tesla Insurance Florida (2025) Posted 2025-10-30 UTC
