The push to cut carbon emissions has led to many government agencies and utilities to continue offering attractive incentives to switch to electric options in 2024. They range from federal and state tax credits to cash rebates for qualifying purchases. Here’s a look at what’s on tap for the coming year.
COLORADO STATE INCENTIVES
Electric Vehicle (EV) Incentives
Coloradans are eligible for an EV tax credit (which recently doubled to $5,000) for the purchase or lease of a qualifying electric vehicle. Starting Jan. 1, EVs under $35,000 MSRP will be eligible for an additional tax credit of $2,500, making the Colorado EV Tax Credit $7,500 for qualifying EVs under $35,000.
Residents can combine their Colorado EV tax credits with the Federal EV incentivs of a $7,500 tax credit for the purchase of a new qualifying EV. To receive the credit, you must be below the income cap of $150,000 for single filers, $225,000 for head of household, or $300,000 for joint filers.
Vehicle Exchange (VXC) Program
Income-qualified residents can replace their 2011 or older vehicle or one that fails a state emissions test with an EV and receive up to a $6,000 rebate for a new EV or $4,000 for a used EV. This applies to households currently enrolled in income-qualified programs or that earn less than 80% of the area’s median income.
Heat Pump Incentives
Heat pumps don’t burn fossil fuels, saving owners an average of 20-40% on their annual utility bills. Colorado taxpayers can currently apply for a combined 10% tax credit and a 2.9% sales tax exemption for a 12.9% discount on the price of heat pump equipment. Xcel Energy customers also may be eligible for a variety of heat pump rebates. Starting in 2024, Coloradans are eligible for a one-time $1,500 tax credit for an air-source heat pump or a $3,000 tax credit for a ground-source heat pump. Colorado residents who install heat pump water heaters can also apply for a $500 tax credit.
Other Colorado Incentives
Besides the big-ticket items above, the state also offers incentives for:
- Besides existing low-income rebates of over $1,100 and moderate-income rebates of over $500, in spring 2024, there will be an expanded program (for all income levels) that provides $450 off an e-bike. Applicants whose household income is below 80% of area median income are eligible for low-income rebates and applicants whose household income is between 80-100% of the area median income are eligible for moderate-income rebates.
- Electric Lawn Equipment Incentives
- Starting January 2024, Coloradans can receive a 30% point-of-sale discount on electric lawnmowers, leaf blowers, trimmers and snow blowers. There’s no application or process – the prices will be marked down at the retailers.
- Weatherization Assistance Program (WAP)
- This program provides free home audits conducted by a verified service provider to determine what energy efficiency upgrades a home requires. If a home receives WAP services, the home will be evaluated for free rooftop solar, provided at no cost to the homeowner.
- Healthy Homes Program
Eligible households in Denver can access tens of thousands of dollars for upgrades like heat pumps and weatherization for their home.
The state also offers incentives for commercial, multifamily, and institutional users, too.
Get the complete details at ConservationColorado.org.
FEDERAL TAX CREDITS
Tax credits save you money by lowering your tax bill. You apply for them when you file your federal, state, and local tax returns. They’re like other tax credits and deductions and are generally limited to a certain percentage of your tax liability.
In 2024, the feds will allow you to deduct a portion (or in some cases, all) of the cost of certain energy-saving purchases like heat pump HVAC systems and heat pump water heaters along with upgrades to insulation and electrical panel upgrades to handle the extra power needed to run those appliances.
If you make 80% or less of your area’s median income, the federal legislation gives you some upfront benefits, too. The upfront rebates need to be passed by Congress, so watch the news. When (if) the rebates are approved, while a federal program, they will be administered by the states.
You can get details on the various federal programs on the IRS website.
Let Allstar Help You Get the Best Bang for Your Buck
Going electric can be complicated and expensive. Your electrical service may need upgrading along with extra wiring to support the added loads. If not done carefully, it can cost more than money—it can pose serious risks to both your property and the precious things it houses.
If you’re considering investing in heat pumps, adding an EV charging station, or switching to electric appliances, let Allstar Electrical Services help you assess the costs and benefits of such a move. Give us a call at 303.399.7420 or visit our website. We’re top-rated by the Better Business Bureau and a preferred contractor by Angi’s Home Advisor and ready to work with you to get the results you deserve.
The pros at Allstar Electrical Services want to extend our best wishes to you and your loved ones for an electrifying new year. We look forward to serving your total electrical needs in 2024 and for many years to come.