Colorado has outpaced California to claim the top spot in electric vehicle market share in the U.S. According to the Northeast States for Coordinated Air Use Management (NESCAUM), 25.3% of new vehicle sales in Colorado during the third quarter of 2024 were electric, as the state pushes toward sustainable transportation.
"Coloradans are purchasing electric vehicles at a higher rate than any other state because they are affordable, quiet and a great ride," said Colorado Gov. Jared Polis in a news release from NESCAUM. "EVs are helping us reach our bold climate goals and protect our clean air."
The data highlights a shift in consumer behavior, with battery electric vehicles (BEVs) accounting for 82% of Colorado's EV sales and plug-in hybrids making up the remaining 18%. This surge in adoption is credited to a combination of state and federal incentives, including Colorado's generous tax credits for EV buyers.
Currently, residents of Colorado can benefit from state credits of up to $5,000 for purchasing or leasing a BEV or plug-in EV with an MSRP under $80,000. For vehicles priced under $35,000, the credit increases to $7,500. Additionally, a $6,000 credit is available for trading in older vehicles for new EVs. These incentives align with the federal Inflation Reduction Act (IRA), further reducing costs and driving demand.
However, these benefits are time-sensitive. The $5,000 state tax credit is set to decrease to $3,500 at the start of 2025, potentially impacting future EV sales growth.
