Expired, Repealed, and Archived Colorado Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality.
Biogas production systems, including sales and storage systems, that create a transportation fuel or renewable natural gas, are exempt from state sales and use tax. Towns, cities, and/or counties that currently have production sales or use taxes may choose to individually enforce or exempt producers from their local taxes. (Reference Colorado Revised Statutes 39-26-724)
The Governor has directed the Colorado Department of Public Health and Environment (CDPHE) to develop a rule to establish a Colorado LEV program. The LEV program will incorporate the California motor vehicle emissions and compliance requirements specified in Title 13 of the California Code of Regulations. The Colorado Air Quality Control Commission must vote on CDPHE's proposed rule for adoption into the Colorado Code of Regulations by December 30, 2018. For more information, including the proposed rule, see the CDPHE LEV Standards website. (Reference Executive Order B 2018-006, 2018)
The Colorado Corn Blender Pump Program provides funding assistance for each qualified station dispensing mid-level ethanol blends. Projects must meet the application requirements and receive approval from Colorado Corn and the Colorado Department of Oil and Public Safety.
Diesel-electric hybrid vehicles that are titled and registered in Colorado are eligible for a tax credit. Light-duty diesel electric hybrid passenger vehicles with a minimum fuel economy of 70 miles per gallon are eligible for a credit of 15% of the difference of the actual cost of purchasing or leasing the vehicle and purchasing or leasing the same or most similar traditional fuel vehicle.
Light-duty passenger vehicles, light-duty trucks, or medium-duty diesel-electric truck conversions that increases the original fuel economy by at least 40% are eligible for a tax credit equal to 25% of the actual cost of the conversion.
These tax credits expire January 1, 2017.
(Reference House Bill 16-1332, 2016, and Colorado Revised Statutes 39-22-516.5, 39-22-516.7, and 39-22-516.8)
In 2011, Colorado joined Arkansas, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Oklahoma Department of Central Services (DCS) issued on behalf of the MOU signatories and additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page.
The Colorado Office of Economic Development and International Trade administers the Bioscience Discovery Evaluation Grant Program (BDEGP), which provides grants to help research institutions commercialize biofuels and other qualified bioscience technologies. BDEGP includes three distinct grant programs: Proof of Concept, Early Stage Company, and Commercialization Infrastructure. For the purpose of this program, biofuel is defined as a biologically based fuel product developed from plant matter or other biological material, including renewable agricultural sources. Grant limits, matching funds, and other eligibility requirements apply. As of January 1, 2015, the BDEGP is part of the Advanced Industry Accelerator Program. On an interim basis, the BDEGP will operate in its former format along with the Advanced Industry Accelerator Program. For more information, see the BDEGP website. (Reference Colorado Revised Statutes 24-48.5-108)
Qualified Xcel Energy customers can participate in a pilot program and earn a $100 credit for allowing Xcel Energy to interrupt their vehicle charging for a limited number of hours throughout the year. Xcel Energy will communicate wirelessly through a control module that interrupts power to the customer's Level 2 electric vehicle supply equipment. The pilot will run through September 2014. For more information, including the pilot program application, see Xcel Energy's Electric Vehicle Charging Station Pilot Program website
Fuel tax exemptions are granted for natural gas and liquefied petroleum gas (propane) vehicle owners. Owners of natural gas and propane vehicles must purchase an annual tax decal from the Colorado Department of Revenue or a decal vendor as follows:
|Gross Vehicle Weight Rating||Annual License Tax Fee|
|1-10,000 pounds (lbs.)||$70|
|Over 16,000 lbs.||$125|
All natural gas and propane vehicles must display a current fuel tax decal. Non-profit transit agencies are exempt from the fuel tax.
(Reference Colorado Revised Statutes 39-27-102.5)
The Colorado Clean Energy Development Authority may issue bonds to finance projects that involve the production, transportation, and storage of clean energy. Clean energy is defined as fuels that are produced and energy that is derived from sources including but not limited to the following: biodiesel; biomass resources, such as biogas, agricultural or animal waste, landfill gas, and anaerobically digested waste biomass; biomass resources that do not include energy generated by use of fossil fuel; fuel cells that do not use fossil fuels; and zero-emissions generation technology, including emission of carbon dioxide, with long-term production potential. (Reference Colorado Revised Statutes 40-9.7-101 through 110)
The following was repealed by House Bill 12-1315: The Colorado Governor's Energy Office may administer the Green Truck Grant Program to provide grants to owners of commercial trucks used in interstate commerce to reduce emissions and energy usage. Reimbursements of 25% of overall costs, up to $50,000, may be made to qualified recipients who purchase or install fuel-efficient technologies and emission-control devices the U.S. Environmental Protection Agency's SmartWay Transport Partnership or any successor program approves to reduce fuel consumption and emissions of greenhouse gases and other harmful air pollutants from trucks. Grants may also be awarded to fund the retirement and scrapping of 1989 or older model year trucks. The total of all reimbursements issued may not exceed $500,000 per year. Additional restrictions may apply. (Reference Colorado Revised Statutes 42-1-301 through 42-1-305)
Beginning January 1, 2010, the Alternative Fuel Vehicle Credit is available from the Colorado Department of Revenue for original equipment manufacturer alternative fuel, hybrid electric, and plug-in hybrid electric vehicles and vehicle conversions that are titled and registered in Colorado. Qualified idle reduction technologies are also eligible for the tax credit. The credits are a percentage of the incremental cost of the vehicle, or the cost of the technology or conversion, as follows:
|1 - Vehicle meeting Tier 2, Bin 1 federal emissions standards||85%|
|2 - Light-duty diesel-electric hybrid passenger vehicle with a minimum fuel economy of 70 miles per gallon (mpg)||65%|
|3 - Light-duty passenger vehicle, light-duty truck, or medium-duty diesel-electric truck conversion that increases original fuel economy by at least 40%; or a new diesel-electric or gasoline-electric hybrid medium-duty truck with 30% greater fuel economy than a comparable vehicle||75%|
|4 - Light-duty compressed natural gas passenger vehicle, light-duty truck, or medium-duty truck||75%|
|5 - Idle reduction technologies||25%|
|6 - Vehicle meeting Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 40 mpg||75%|
|7 - Vehicle meeting Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 30 mpg, but less than 40 mpg||50%|
The credit is capped at $6,000 for all categories except Category 4. For Category 3 and 4 vehicles, the credit percentage is multiplied by 1.25, up to a maximum of 100%, if the vehicle permanently replaces a vehicle that is 12 years old or older and is rendered inoperable.
The same vehicle may not be eligible for this credit and the credit outlined in Colorado Revised Statutes 39-22-516.2.5. Individuals who claimed a tax credit in previous years for the purchase of a Model Year 2004 or newer HEV may, however, be eligible to claim an additional credit for the conversion of the same vehicle to a PHEV.
The credit for Category 7 vehicles expires on January 1, 2011. The remaining credits are available through the tax year beginning on January 1, 2011. For additional information, see the Department of Revenue's Income 67 FYI publication.
(Reference Colorado Revised Statutes 39-22-516.2.6)
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:
|Category||July 1, 2010, to July 1, 2011||July 1, 2011, to July 1, 2012||July 1, 2012, to July 1, 2013||July 1, 2013, to July 1, 2015|
|1 - Vehicle meeting Tier 2, Bin 1 federal emissions standards||75%||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 vehicle||55%||35%||25%||25%|
|4 - Light-duty passenger vehicle, light-duty truck, or medium-duty truck natural gas conversions||55%||35%||25%||25%|
|5 - Idle reduction technologies||25%||25%||25%||25%|
|6 - Vehicle meeting Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 40 mpg||10%||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)
For tax years beginning before January 1, 2011, the Colorado Department of Revenue offers an income tax credit of 20% of the cost of construction, reconstruction, or acquisition of an alternative fueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles. For an alternative fueling facility that will be generally accessible for public use in addition to the person claiming the credit, the credit is multiplied by 1.25. If at least 70% of the alternative fuel dispensed annually is derived from a renewable energy source for a period of 10 years, the credit is multiplied by 1.25. Certification for the percentage of renewable energy must be presented to the Department of Revenue upon request. The credit has a maximum value of $400,000 in any consecutive five-year period for each fueling facility. Excess credit may be carried forward for up to five years. For additional information, see the Department of Revenue's Income 9 FYI publication. (Reference Colorado Revised Statutes 39-22-516)
Beginning July 1, 2000, the Alternative Fuel Vehicle Credit is available from the Colorado Department of Revenue for a motor vehicle titled and registered in Colorado that uses or is converted to use an alternative fuel or is a hybrid electric vehicle. Alternative fuels include electricity, compressed natural gas, propane, ethanol, or any mixture of ethanol containing 85% or more ethanol by volume with gasoline or other fuels. The credit is a percentage of the incremental cost of the vehicle or the vehicle conversion as follows:
|Low-emitting vehicle (LEV)||50%|
|Ultra-low-emitting vehicle (LUEV) or Inherently-low emitting vehicle (ILEV)||75%|
|Zero-emitting vehicle (ZEV or SULEV)||85%|
Vehicle categories are outlined in Title 40 of the Code of Federal Regulations, part 88. The tax credit percentage is doubled, up to a maximum of 100%, if the vehicle permanently replaces a vehicle that is ten years old or older and will never be operated on Colorado highways in the future. This credit is available through the tax year beginning on January 1, 2010. For additional information, see the Department of Revenue's Income 9 FYI publication.
(Reference Colorado Revised Statutes 39-22-516.2.5)
The State of Colorado has set goals to reduce GHG emissions by 20% below 2005 values by 2020 and by 80% below 2005 values by 2050. The Colorado Department of Public Health and Environment (CDPHE) is directed to develop regulations to submit to its Air Quality Control Commission that mandate reporting of GHG emissions from all major sources. CDPHE must plan for performing updates to the state's GHG inventory and identify and evaluate the benefits and impediments to measures designed to reduce tailpipe emissions from light-duty vehicles, including the utility and availability of alternative fuel vehicles. Additionally, CDPHE must develop a proposal for reducing net GHG emissions from the state's transportation sector. (Reference Executive Order D004 08 (PDF 24 KB)) Download Adobe Reader