Colorado is boosting its popular cash-for-clunkers EV buying support by nearly 60% with a $9 million fund for 2024-25, after retiring more old, dirtier cars than expected off the road during the first year.
The state exhausted $5.7 million for the first year of the fund, which helps income-qualified buyers with an extra $6,000 rebate at the cash register if they turn in an older car when buying a new EV. Turning in an old car and buying a used EV can bring an exchange rebate of up to $4,000.
Stacked with other federal, state and utility EV rebates, the extra state boost can cut the cost of some EVs by far more than half.
Formally dubbed Vehicle Exchange Colorado, or VXC, the program pulled 879 old or emissions-failing vehicles from highways in the year beginning Aug. 31, 2023, state officials said in a release.
“Expanding the use of electric vehicles is an important part of our work to improve air quality and achieve our climate goals, and we look forward to seeing this funding support more Coloradans,” Gov. Jared Polis said in the release.
“The way Coloradans have embraced this program shows the momentum the EV market is having in Colorado, and we’re extremely excited to continue building on its success with additional funding,” said Colorado Energy Office Executive Director Will Toor.
The program issued a total of 1,301 rebates from old car exchanges in the first year, and consumers redeemed 68% of those vouchers. That was more than six times the number of rebates the Colorado Energy Office expected to provide, state officials said. The second shot of $9 million is for the fiscal year starting July 1, 2024, running through June 30, 2025.
The total two-year funding of $14.7 million has come through the Community Access Enterprise. It is overseen by the energy office, and paid for through a retail delivery fee that began in 2022.