Which Electric Vehicles Qualify For A Tax Credit?

Power Up Your Savings with Toyota EVs and Hybrids

At Western Slope Toyota, we're all about helping you navigate the exciting world of electric vehicles and hybrids, including explaining which EVs qualify for tax credit. With rising gas prices and a growing focus on sustainability, it's no wonder these innovative models are gaining traction. But did you know switching to an electric or hybrid Toyota could also mean significant tax savings? The good news is that Toyota offers a variety of models that qualify for the Colorado EV tax credit! Our informative blog post will be your one-stop guide to understanding the latest tax credit changes, the EVs that qualify for tax credit, and how you can leverage them to power up your savings with a new Toyota EV.

Federal EV Tax Credit 2025 Changes

The federal EV tax credit expired on September 30th, 2025.

State Tax Incentives

If you're buying a Toyota EV or hybrid for business use, you may also benefit from depreciation deductions:

Section 179 Deduction:

In 2025, businesses can deduct up to $1,250,000 of qualifying equipment (including vehicles) placed in service, with a phase-out starting after $3,130,000 of total asset purchases.

Bonus Depreciation:

Additional bonus depreciation is available for any remaining cost after the Section 179 deduction. In 2025, the rate is 40%, down from previous years.

This powerful combination allows eligible business-use vehicles—including certain EVs—to be fully expensed in year one when limits and thresholds permit.

Make the Switch & Save

At Western Slope Toyota, we're committed to helping you find the perfect vehicle that fits your lifestyle and budget. With the 2025 federal EV tax credit making Toyota's exciting lineup of EVs and hybrids even more attractive, there's never been a better time to explore the possibilities! Visit us today for a test drive and discover how you can save money and fuel while making a positive impact on the environment.