STATE INCENTIVES
Colorado's EV incentives for Rivian buyers.
Colorado still has a state EV credit, but an $80,000 price cap now excludes most of the Rivian lineup. Here is what actually applies to your configuration, what quietly expired this summer, and what is still worth claiming.
10 min read · Last updated August 2026
THE QUICK ANSWER
- Colorado state EV credit: $750 for 2026, but only for vehicles with MSRP at or below $80,000
- No R1S configuration qualifies. The 2027 R1S starts at $83,990. The R1T Premium qualifies at base spec only.
- Federal home charger credit ended June 30, 2026. Section 30C is gone. Installs after that date get nothing.
- Still available: Xcel charger rebates ($500–$1,300), the auto loan interest deduction if your income qualifies, VXC up to $9,000 if income-qualified, the Costco discount, and the Rivian referral code
- Realistic 2026 stack, R1S buyer in Colorado: roughly $750–$1,550 before the Costco discount
How Colorado's EV tax credit works
Colorado's Innovative Motor Vehicle Credit is administered by the Department of Revenue. For 2026 the credit is $750, down from $3,500 in 2025 and $5,000 in 2024. It is refundable, which means you receive the full amount even if your Colorado tax liability is smaller.
You can claim it two ways: file it on your Colorado state return, or assign it to a participating dealer or financing entity for an immediate price reduction using form DR 0618. A dealer is not required to accept assignment and may deduct an administrative fee of up to $250. The extra $600 assignment bonus that existed in 2024 and 2025 no longer applies in 2026.
There is also an additional $2,500 credit for vehicles with an MSRP under $35,000. No Rivian comes close to that threshold, so no Rivian buyer will ever see it.
The $80,000 cap disqualifies the R1S
This is the part most Rivian guides get wrong, including an earlier version of this page. Colorado disallows the credit entirely for any vehicle with a manufacturer's suggested retail price above $80,000. The Department of Revenue is explicit that the limit applies to MSRP, not the price actually paid, and that MSRP includes the manufacturer's suggested price for every factory option physically attached to the vehicle before sale. Destination charges and dealer-added items are excluded.
Rivian restructured the R1 lineup for the 2027 model year in August 2026, replacing Dual, Tri, and Quad with Premium, Performance, and Quad. Here is where each configuration lands against Colorado's cap.
| Configuration | Base MSRP | $750 credit |
|---|---|---|
| 2027 R1S Premium | $83,990 | No |
| 2027 R1S Premium Long Range | $90,990 | No |
| 2027 R1S Quad | $121,990 | No |
| 2027 R1T PremiumBase spec only — options break the cap | $79,990 | Yes |
| 2027 R1T Premium Long Range | $86,990 | No |
| 2027 R1T Quad | $115,990 | No |
| R2 Performance Launch | $57,990 | Yes |
| R2 Premium (late 2026) | $53,990 | Yes |
The R1T trap. The R1T Premium clears the cap by $10. Add the $2,500 Sound and Vision package, the $5,000 Power Upgrade, or the $7,000 Max battery and your MSRP crosses $80,000, which costs you the entire $750. If you are buying an R1T in Colorado and want the credit, the option list is the decision — not the trim.
MSRP figures are 2027 model year base prices as published by Rivian in August 2026 and exclude the destination charge. Verify your specific build's MSRP on the window sticker, and confirm current program rules with the Colorado Department of Revenue before filing.
Vehicle Exchange Colorado (VXC) — up to $9,000 if you qualify
Vehicle Exchange Colorado is the state's income-qualified vehicle replacement program. Colorado raised the rebate amounts on November 3, 2025 specifically to offset the loss of the federal credit.
- New EV purchase or lease: up to $9,000 (raised from $6,000)
- Used EV: up to $6,000 (raised from $4,000)
Eligibility requires household income at or below 80 percent of area median income, or enrollment in a qualifying assistance program. You must surrender a gasoline or diesel vehicle that is at least 12 model years old or fails emissions, titled in your name and free of liens.
VXC carries its own vehicle price limit. Confirm the current cap with the Colorado Energy Office before planning around it, but as a practical matter the program is not aimed at $84,000 SUVs — for an income-qualified household, the realistic Rivian target under VXC is the R2. The rebate is applied at point of sale and must be approved before you purchase; it is not something you can claim after the fact.
What expired, and when
Two separate federal programs died under the One Big Beautiful Bill Act, and they died on different dates. Conflating them is the most common error in EV incentive coverage right now.
The $7,500 Clean Vehicle Credit expired September 30, 2025. Both the consumer credit under Section 30D and the commercial lease pathway under Section 45W ended on that date. Only buyers who signed a binding contract and made a payment on or before September 30, 2025 may still claim it at delivery.
The Section 30C home charger credit expired June 30, 2026. It was worth 30 percent of charger and installation cost up to $1,000, and it was the last federal clean energy credit standing for homeowners. Equipment placed in service after June 30, 2026 receives nothing. If your charger was installed and operational on or before that date, you can still claim it on your 2026 return using IRS Form 8911.
See the full breakdown at /federal-tax-credit.
The one federal break Rivian buyers still have
The same bill that killed the EV credit created a new one that almost nobody is discussing in a Rivian context. For tax years 2025 through 2028, you can deduct up to $10,000 per year of interest paid on a qualifying new vehicle loan. It is an above-the-line deduction, so you do not need to itemize.
Rivian passes the hardest test. The vehicle must undergo final assembly in the United States, and every R1T, R1S, and R2 is built in Normal, Illinois. Ignore the widely circulated shortcut that says U.S.-assembled vehicles have a VIN starting with 1, 4, or 5 — every Rivian VIN starts with 7, and every Rivian still qualifies. The authoritative check is the final assembly point printed on the window sticker.
The rest of the conditions are where people fall out. The loan must originate after December 31, 2024 and be a first lien secured by the vehicle. The vehicle must be new and for personal use. Leases do not qualify, which is the first time since the 45W loophole closed that financing and leasing have diverged on tax treatment. If you are weighing the two, see the lease vs. buy guide.
The income test is the real filter. The deduction phases out starting at $100,000 of modified adjusted gross income for single filers and $200,000 for joint filers, reduced by $200 for every $1,000 above the threshold. That means full phase-out at $150,000 single and $250,000 joint. Plenty of R1S buyers will get nothing here, and it is worth running your own numbers before counting on it.
One consequence worth thinking through: a promotional 0% or 1.99% APR produces little or no interest, and therefore little or no deduction. If you are under the income threshold, a higher-rate loan you can deduct is not automatically worse than a promotional rate you cannot. Run both.
If you use the vehicle more than 50% for business, this deduction is off the table — but Section 179 and bonus depreciation are almost certainly worth more.
IRS regulations on this deduction are still in proposed form and may change. This is not tax advice — talk to your CPA before relying on it.
Xcel Energy rebates for EV owners
With Section 30C gone, Xcel is the only meaningful charger incentive left for most Colorado buyers. Rebates for residential Level 2 charger installation typically range from $500 to $1,300 depending on whether you install a basic or smart charger and whether you enroll in a time-of-use rate program. Smart chargers that communicate with the grid qualify for the higher amounts.
Time-of-use rates let you charge overnight at significantly reduced electricity rates. Xcel's EV rate plans typically offer the lowest rates between 9 PM and 9 AM, which lines up with overnight home charging. Over the life of the vehicle this is usually worth more than the one-time rebate.
Xcel also runs demand response programs that pay you to delay charging during peak grid stress, usually hot summer afternoons. Participation is optional and the credits are modest, but they accumulate.
What a home charger costs now
The math changed on July 1, 2026. Here is the current picture:
| Incentive | Amount | Status |
|---|---|---|
| Federal Section 30C charger credit | $0 | Expired June 30, 2026 |
| Xcel Energy Level 2 charger rebate | $500–$1,300 | Active |
| Time-of-use rate savings | Ongoing monthly | Active |
A typical Level 2 installation runs $1,500 to $2,500 including hardware and electrical work. With only the Xcel rebate available, expect net out-of-pocket in the $500 to $2,000 range depending on your panel situation and which charger you choose. If you installed before July 1, 2026, claim the 30C credit on your 2026 return — it has not been clawed back, it simply stopped applying to new installs.
Real Colorado stacking math, 2026
2027 R1S Premium, purchased in Colorado, MSRP $83,990:
| Incentive | Amount |
|---|---|
| Federal Clean Vehicle Credit — expired Sept 30, 2025 | $0 |
| Colorado state EV credit — MSRP exceeds $80,000 cap | $0 |
| Federal charger credit — expired June 30, 2026 | $0 |
| Xcel Energy Level 2 charger rebate | $500–$1,300 |
| Rivian Rewards referral code (RICK4348389)250 points on a Premium build, plus 3 months Adventure Network charging | ~$250 |
| Auto loan interest deductionFinanced purchases only; phases out above $100K/$200K MAGI | Varies |
| Total before Costco | $750–$1,550 |
Costco is now the largest single lever. The Costco Auto Program discount of $1,000 to $5,000 off MSRP stacks on top of everything above, and unlike the state credit it has no price cap. For an R1S buyer in Colorado it is worth more than every remaining tax incentive combined. See the Costco guide.
Buying an R1T Premium in base spec instead? Add $750 to every figure above. Buying a Quad? The referral reward doubles to 500 points. Buying an R2? Add $750 for the state credit, check whether you qualify for VXC — but note that R2 orders do not currently earn referral points.
Amounts depend on program rules in effect at time of purchase. Verify with the Colorado Department of Revenue, the Colorado Energy Office, and Xcel before claiming anything.
Ready to configure?
Use referral code RICK4348389 to earn $100 to $500 in Rivian Rewards points, depending on your configuration, plus 3 months of complimentary Adventure Network charging on an R1S or R1T.
Frequently asked questions
Does a Rivian R1S qualify for the Colorado EV tax credit?
No. Colorado disallows the Innovative Motor Vehicle Credit for any vehicle with a manufacturer's suggested retail price above $80,000. The 2027 R1S Premium starts at $83,990, and every R1S trim above it is more expensive, so no R1S configuration qualifies. The limit applies to MSRP including factory-attached options, not the price you actually negotiate or pay.
How much is Colorado's EV tax credit in 2026?
The Colorado Innovative Motor Vehicle Credit is $750 for new EV purchases and leases in 2026, down from $3,500 in 2025. It is refundable, and it applies only to vehicles with an MSRP of $80,000 or less. An additional $2,500 is available for vehicles under $35,000 MSRP, which no Rivian meets. You claim it on your Colorado state return using form DR 0618, or assign it at point of sale.
Which Rivian models still qualify for the $750 Colorado credit?
The R2 qualifies at every trim announced so far. The 2027 R1T Premium qualifies at its $79,990 base price, but only barely — adding the Sound and Vision package, the Power Upgrade, or the Max battery pushes MSRP above $80,000 and disqualifies the vehicle. No R1S trim qualifies. Destination charges are excluded from the MSRP calculation, but factory options are not.
Is the federal home charger tax credit still available in Colorado?
No. The federal Section 30C residential charger credit, worth 30 percent of installation costs up to $1,000, expired June 30, 2026 under the One Big Beautiful Bill Act. Installations placed in service after that date receive no federal credit. If your charger was installed and operational on or before June 30, 2026, you can still claim it on your 2026 return using IRS Form 8911. Xcel Energy rebates remain available.
Can I deduct the interest on my Rivian loan?
Possibly. The One Big Beautiful Bill Act created an above-the-line deduction of up to $10,000 per year on interest paid on qualifying new vehicle loans for tax years 2025 through 2028. Rivian vehicles are assembled in Normal, Illinois, so they meet the U.S. final assembly test. The deduction phases out starting at $100,000 of modified adjusted gross income for single filers and $200,000 for joint filers, reduced by $200 for every $1,000 above the threshold. Leases do not qualify.
Does Xcel Energy offer rebates for home EV chargers?
Yes. Xcel Energy is Colorado's largest utility and offers rebates of $500 to $1,300 for residential Level 2 charger installation. Smart chargers that can communicate with the grid qualify for higher rebates. Time-of-use rate plans add ongoing savings on top of the upfront rebate by allowing overnight charging at reduced electricity rates, typically between 9 PM and 9 AM.
Can I stack Colorado incentives with the Rivian referral code?
Yes. The Rivian Rewards referral code is a separate program from any tax credit or utility rebate. Using referral code RICK4348389 adds $100 to $500 in Rivian Rewards points depending on your configuration — 500 points for Performance or Quad, 250 for Premium with the Large or Max pack, 100 for Premium Standard — plus 3 months of complimentary Adventure Network charging, regardless of any state credits or utility rebates you also claim. It also stacks with the Costco Auto Program discount. Referral points are earned on R1T and R1S orders; R2 orders do not currently earn them.
Configure your Rivian today
Apply your Colorado incentive stack and referral code RICK4348389 at checkout.