Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Rebate

Expired: 03/09/2011

The Colorado Department of Revenue offers a rebate for the purchase of an AFV, HEV, or for the conversion of a vehicle to operate using an alternative fuel. Vehicles must be owned by the state, a political subdivision of the state, or a tax-exempt organization, and be used in connection with the official activities of the entity. The rebate is a percentage of the incremental cost if used toward purchasing a new vehicle, or is a percentage of the conversion cost if used towards the cost of converting a vehicle to operate using an alternative fuel. The rebate percentages are as follows:

CategoryJuly 1, 2010, to July 1, 2011July 1, 2011, to July 1, 2012July 1, 2012, to July 1, 2013July 1, 2013, to July 1, 2015
1 - Vehicle meeting Tier 2, Bin 1 federal emissions standards75%75%75%75%
2 - Light-duty diesel-electric hybrid passenger vehicle with a minimum fuel economy of 70 miles per gallon (mpg)45%25%15%15%
3 - Light-duty passenger vehicle, light-duty truck, or medium-duty diesel-electric truck conversion that increases original fuel economy by at least 40% AND (for 2010 and 2011) a new diesel-electric or gasoline-electric medium-duty truck hybrid with 30% greater fuel economy than a comparable vehicle55%35%25%25%
4 - Light-duty passenger vehicle, light-duty truck, or medium-duty truck natural gas conversions55%35%25%25%
5 - Idle reduction technologies25%25%25%25%
6 - Vehicle meeting Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 40 mpg10%10%0%0%

Each qualified entity is limited to $350,000 per state fiscal year in total rebates paid. The purchase of a used vehicle may qualify for a rebate if the prior owner of the vehicle did not previously claim a rebate or income tax credit for the vehicle. For additional information, see the Department of Revenue's General 20 FYI publication.

(Reference Colorado Revised Statutes 39-33-101 through 39-33-106)