Colorado will offer a new state electric vehicle rebate as federal tax credits for electric vehicles are expiring under the new federal tax and spending plan.

Beginning Nov. 3, the Vehicle Exchange Colorado rebates will increase from $6,000 to $9,000 for a new electric vehicle purchase. Rebates will also increase from $4,000 to $6,000 for used EV purchases and leases.

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“The market has made it clear, EVs are here to stay. Colorado is a national leader in EVs, expanding access and creating pathways for Coloradans to purchase an EV at low-cost. I encourage all Coloradans who are thinking of buying an electric vehicle or have been holding off: get out there right now,” Gov. Jared Polis (D-CO) said in a statement.

State leaders said electric vehicles made up a quarter of new car sales in Colorado so far this year.

Colorado Energy Office Executive Director Will Toor said this new program is intended to specifically aid low-income residents.

“For people who make up to 80% of area median income, who are turning in an older polluting gasoline vehicle, will be able to get up to a $9,000 rebate towards a new electric vehicle, that’s up from $6,000 which is the current level, or up to $6,000 for used electric vehicle, which is an increase from the current level of $4,000,” Toor said.

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The announcement came the same week that federal tax credits for electric vehicles expired as a result of the Tuesday under the One Big Beautiful Bill Act, which President Donald Trump signed into law in July. Sales of electric vehicles surged across the U.S. in the weeks leading up to the federal tax credits’ expiration.

The federal government had offered consumers up to $7,500 for purchasing a new EV and $4,000 for a used one as a means of encouraging consumers to buy battery-powered vehicles over gas-powered cars.