Colorado counters loss of Federal EV incentives with possibly a big waste of taxpayer dollars

EV incentives

Colorado is evidently intent on electrifying the fleet of its citizens automobiles. October 1st marked the end of Federal EV incentives, but the Rocky Mountain State countered by raising its own purchasing incentives to as much as $9,000, $1,500 more than the cancelled bonus.

As reported by InsideEVs, a credit on used EVs will ride from $4,000 to $6,000, and they note that income restrictions are much tighter in Colorado than those that were imposed by the Fed. See the InsideEVs articles for details.

We bring it to your attention here in because we believed right along that, while the tax incentives were a big plus in building the current EV business, the loss of the credit is not a death knell. Rather, we think auto makers will respond by lowering prices as well as introducing more lower priced models.

History has shown this to be true. Tesla built a good deal of wealth and market share on the first round of EV incentives and immediately began lowering prices when the credits could no longer be applied to their cars.

As we reported, Hyundai cut the price of its very popular Ioniq 5 less than 24 hours after the latest set of incentives ended, Rivian continues to offer attractive sales incentives and Nissan and Chevrolet have lower priced models available now or on the way very soon.

We firmly believe other will follow suit. And while it is certainly true that qualifying Coloradans will benefit greatly from the state’s generosity, given that history, a bit of a wait and see attitude should have been applied here.

If, in fact, manufacturers did not respond strongly enough, Colorado or any state could jump in at any time to spur EV uptake.

Their taxpayers might appreciate a break…

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