COLORADO, USA — In the first nine months of the year, nearly one in four vehicles registered in Colorado was battery-powered or a plug-in hybrid.
The incentives that could be incentivizing those vehicles are changing, The federal tax credit of $7,500 could be changed by a Republican Congress and a President Trump administration. The state tax credit of $5,000 will drop in January to $3,500.
The electric vehicle rebate offered to low-income Xcel customers just ran out.
Earlier this year, the Colorado Public Utilities Commission (PUC) approved Xcel’s $264 million Transportation Electrification Plan. That plan, funded by Xcel customers, is to enhance electric vehicle (EV) infrastructure and offer rebates for EVs and charging stations. Low-income Xcel customers could qualify for $5,500 off a new EV or $3,000 off a used EV.
According to Xcel, the $5.3 million fund covered 1,176 rebates for new and used EVs. An Xcel spokesman said nearly 100 customers will receive notice that the rebate they qualified for is no longer funded.
“As of Saturday, November 9, 2024, the program has reached its capacity for participation,” the letter states. “If you have not received an email from Xcel Energy confirming your rebate check has been mailed, we have unfortunately reached capacity on the program before your application could be approved and paid out.”
“I am amazed at how fast that money has gone out the door,” Travis Madsen, Transportation Program Director for Southwest Energy Efficiency Project, said. “Our mission is to help people save money to reduce pollution and to advance equity.”
Madsen and his group were part of the PUC hearings that led up to the inclusion of the rebates for low-income customers.
“I think there's a segment of the population, lower-income people and families that may not make the decision to buy an electric vehicle without this support,” Madsen said.
What is not clear from Xcel or the letter to customers is if anyone bought an EV expecting the check to come after the purchase. In most cases, someone would get the rebate at the point of sale at the dealership.
However, the three-page rebate form did warn that the fund was not infinite. On page three, there was the following paragraph.
"There are limited funds available to support Xcel Energy’s EV Rebate program, EV Rebates will be issued on a first come, first served basis, and Xcel Energy may refuse providing an EV Rebate if and when such funds have been consumed.”
“Losing the rebate might make it impossible for some people to proceed with a purchase that they would otherwise have done,” Madsen said. “I'd love to expand it. I'm not sure how likely that is to happen.”
An Xcel spokesman said that Xcel would not go to the PUC to seek additional funds, which would ultimately come from customers anyway. Xcel is also not expending Xcel funds.
“For my part, I'm going to try to keep expanding support, in particular, so more folks on the lower end of the income scale can participate,” Madsen said.