Alternative Fuel Vehicle (AFV) Tax Credit
AFVs titled and registered in Colorado are eligible for a tax credit. For the purpose of the credit, AFVs are defined as dedicated or bi-fuel natural gas and propane vehicles. The tax credit is equal to the amounts listed below, per calendar year:
|Light-duty passenger motor vehicle||$2,500 for purchase or conversion; $1,500 for lease||$2,000 for purchase; $1,500 for lease|
|Light-duty truck||$3,500 for purchase or conversion; $1,750 for lease||$3,500 for purchase; $1,750 for lease|
|Medium-duty truck||$5,000 for purchase or conversion; $2,500 for lease||$5,000 for purchase; $2,500 for lease|
|Heavy-duty truck||$10,000 for purchase or conversion; $5,000 for lease||$10,000 for purchase; $5,000 for lease|
Tax credits are available through December 31, 2021. Eligible purchased vehicles must be new, and eligible leased vehicles must have a lease with a term of not less than two years. A purchaser may assign the tax credit generated through the purchase, lease, or conversion to any of the above categories of vehicle to the financing entity, allowing the purchaser to realize the value of the tax credit at the time of purchase, lease, or conversion. The financing entity may collect an administrative fee of no more than $150.
For more information, see the Colorado Department of Revenue’s Income 69 and Income 70FYI publications.
(Reference Colorado Revised Statutes 39-22-516.5, 39-22-516.7, and 39-22-516.8)