Expired, Repealed, and Archived Colorado Incentives and Laws
The following is a list of expired, repealed, and archived incentives, laws, regulations, funding opportunities, or other initiatives related to alternative fuels and vehicles, advanced technologies, or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.
Regional Electric Vehicle (REV) West Plan
Archived: 04/03/2024
Colorado joined Arizona, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States’ major transportation corridors.
In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:
- Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
- Coordinate on EV charger locations to achieve a consistent user experience across Signatory States;
- Use and promote the REV West Voluntary Minimum Standards for EV chargers and explore opportunities for implementing the standards in Signatory States;
- Identify and develop opportunities to incorporate EV chargers into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
- Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
- Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
- Support the build-out of direct current (DC) fast chargers along EV corridors through investments, partnerships, and other mechanisms.
The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. For more information, see the REV West website.
Impact Assistance Program for Public Fleets
Expired: 07/13/2023
The Colorado Department of Local Affairs (DOLA) offers funding for the incremental cost of alternative fuel vehicles (AFVs) and alternative fueling infrastructure for public fleets. Eligible entities include municipalities, counties, and special districts. For more information, see the DOLA Energy Impact Assistance Fund Grant website.
Alternative Fuel Vehicle (AFV) Tax Credit
Expired: 01/01/2022
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:
| Category | 2021 | 2022 |
|---|---|---|
| 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 70 FYI publications.
Alternative Fuel Vehicles and Infrastructure Grant Program
Expired: 01/01/2022
The Colorado Energy Office (CEO), the Regional Air Quality Council (RAQC), and the Colorado Department of Transportation (CDOT), have partnered to provide grants through the ALT Fuels Colorado program for new electric vehicles and compressed natural vehicles fueled exclusively by 100% renewable natural gas. Additional funding may be available for electric vehicle supply equipment. CEO will administer the station grants to advance infrastructure development along major state-wide transportation corridors. RAQC will administer the vehicle grants for fleets operating within counties with air quality nonattainment and maintenance areas. For more information, including application deadlines and annual award amounts, see the Clean Air Fleets ALT Fuels Colorado website.
Fuel Reduction Technology Tax Credit
Expired: 01/01/2022
Fuel reduction technologies are eligible for a tax credit equal to a percentage of the actual cost paid for the technology. The actual cost paid must account for eligible federal credits, grants, or rebates.
| Category | 2021 Tax Credit |
|---|---|
| Idle reduction technologies | 25% (up to $6,000) |
| Aerodynamic technologies | 25% (up to $6,000) |
| Clean fuel refrigerated trailer | 3.75% (up to $7,500) |
| Conversion to a clean fuel refrigerated trailer | 11.25% (up to $7,500) |
| Hydraulic hybrid trailer | $2,500 |
Tax credits are available through December 31, 2021. A purchaser of a converted hydraulic hybrid trailer may assign the tax credit to the financing entity, allowing the purchaser to realize the value of the tax credit at the time of conversion. The financing entity may collect an administrative fee of no more than $150.
(Reference Colorado Revised Statutes 39-22-516.7 and 39-22-516.8)
Alternative Fuel, Advanced Vehicle, and Idle Reduction Technology Tax Credit
Expired: 12/31/2021
The Colorado Department of Revenue offers the Innovative Motor Vehicle Credit for a vehicle titled and registered in Colorado that uses or is converted to use an alternative fuel, is a diesel hybrid electric vehicle (HEV), is a plug-in hybrid electric vehicle (PHEV), or has its power source replaced with one that uses an alternative fuel. Electric vehicles (EVs) and PHEVs must have a maximum speed of at least 55 miles per hour. Qualified idle reduction technologies, aerodynamic technologies, and clean fuel trailers are also eligible for the tax credit. Credits for vehicles purchased or converted January 1, 2014, through December 31, 2021, are based on defined vehicle and technology categories as listed below. Credit amounts vary for each category, vehicle weight, and tax year. Percentages apply to the base model manufacturer’s suggested retail price (MSRP) for EV and PHEV purchases, and to the actual cost paid for EV and PHEV leases, eligible conversions, idle reduction and aerodynamic technologies, and clean trailer purchases or conversions. The actual cost paid or MSRP must account for eligible federal credits, grants, or rebates; therefore taxpayers must subtract credits, grants, or rebates amounts before applying the percentage calculations listed below.
| Category | 2014-2016 | 2017-2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| 1 - Original equipment manufacturer (OEM) light-duty EV or PHEV | See below | See below | See below | See below | See below |
| 1A - Conversion of a light-duty motor vehicle to a EV or PHEV | 75% | 75% | 56.25% | 37.5% | 18.75% |
| 2 - Light-duty diesel-electric hybrid passenger vehicle with a minimum fuel economy of 70 miles per gallon (mpg) | 15% | 15% | 11.25% | 7.5% | 3.75% |
| 3 - Light-duty passenger vehicle, light-duty truck, or medium-duty diesel-electric truck conversion that increases original fuel economy by at least 40% | 25% | 25% | 18.75% | 12.5% | 6.25% |
| 4 - Dedicated or bi-fuel OEM vehicle powered by compressed natural gas (CNG) or liquefied petroleum gas (LPG or propane) | 18% | 15% | 11.25% | 7.5% | 3.75% |
| 4A - Dedicated or bi-fuel vehicle converted to use CNG or propane | 55% | 45% | 33.75% | 22.5% | 11.25% |
| 4B - Dedicated or bi-fuel OEM truck powered by liquefied natural gas (LNG) or hydrogen | 18% | 15% | 11.25% | 7.5% | 3.75% |
| 4C - Dedicated or bi-fuel truck converted to use LNG or hydrogen | 55% | 45% | 33.75% | 22.5% | 11.25% |
| 5 - Idle reduction technologies | 25% | 25% | 25% | 25% | 25% |
| 6 - Aerodynamic technologies | 25% | 25% | 25% | 25% | 25% |
| 7 - OEM EV truck or PHEV truck | 18% | 15% | 11.25% | 7.5% | 3.75% |
| 7A - Conversion to an EV truck or PHEV truck | 55% | 45% | 33.75% | 22.5% | 11.25% |
| 8 - Clean fuel refrigerated trailer (purchased after July 1, 2014) | 18% | 15% | 11.25% | 7.5% | 3.75% |
| 8A - Conversion to a clean fuel refrigerated trailer (after July 1, 2014) | 55% | 45% | 33.75% | 22.5% | 11.25% |
| 9 - Hydraulic hybrid trailer | 55% | 45% | 33.75% | 22.5% | 11.25% |
Credits for EVs and PHEVs in Category 1 are equal to the actual cost incurred to purchase or lease the vehicle, multiplied by the battery capacity, and divided by 100. That amount must be multiplied by a factor to determine the credit amount, as follows: 1.0 for 2014-2018, 0.75 for 2019, 0.50 for 2020, and 0.25 for 2021.
Annual credit caps exist for each technology type and vehicle weight class, and for cumulative annual credits. A person who claimed a tax credit in previous years for the purchase or lease of Model Year 2004 and newer HEV may claim an additional credit for the conversion of the same vehicle to a PHEV. The purchase of a used vehicle may qualify if the vehicle was not previously registered in Colorado. Credits may not be carried forward and a taxpayer will receive a refund for the excess credit.
Credits for vehicles purchased, leased, or converted during the 2014 tax year may be determined in one of two different ways. For more information, see the Department of Revenue’s Income 67 FYI publication.
(Reference Colorado Revised Statutes 39-22-516.5, 39-22-516.7, and 39-22-516.8)
Public Utility Definition
Repealed: 09/14/2020
Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture containing 85% or more ethanol (E85) with gasoline or other fuels, electricity, or any other fuels, which may include clean diesel and reformulated gasoline, so long as the Colorado Air Quality Control Commission determines that these other fuels result in comparable reductions in carbon monoxide emissions and brown cloud pollutants. Alternative fuel does not include any fuel product that contains or is treated with methyl tertiary butyl ether (MTBE). (Reference Colorado Revised Statutes 25-7-106.8)
Compressed Natural Gas (CNG) School Bus Matching Grants
Archived: 07/12/2020
Noble Energy is partnering with the Regional Air Quality Council (RAQC) to match grants to qualified Colorado school districts to fund CNG school bus purchases. School districts must apply to RAQC for an ALT Fuels Colorado program grant. Noble Energy will provide additional funds directly to the school district once RAQC approves the grant award. For more information, including additional requirements, see the ALT Fuels Colorado website.
Fleet Purchase and Pricing Agreement Requirements
Archived: 12/31/2019
The Colorado state fleet and the Colorado Department of Transportation (CDOT) must purchase natural gas vehicles (NGVs) where natural gas fueling is available or planned, whenever possible. Where NGVs are not viable options, other alternative fuel vehicles (AFVs) such as plug-in electric, hybrid electric, and propane vehicles, must be considered. All new vehicles purchased must be either alternatively fueled or exceed federal Corporate Average Fuel Economy standards.
In addition, CDOT and the Colorado Department of Personnel and Administration (DPA) must include AFVs in state pricing agreements; AFVs include compressed natural gas, hybrid electric, plug-in electric, and propane vehicles. CDOT and DPA must also determine opportunities to expand state pricing into alternative fuel and fuel-efficient heavy-duty equipment, as well as into idle reduction technologies and telematics.
(Reference Executive Order D 2015-013, 2015)
Inter-Agency Fleet Improvement Coordination
Archived: 12/31/2019
The Colorado Energy Office, Department of Transportation (CDOT), Department of Public Health and Environment, and Department of Personnel and Administration (DPA) will establish a State Fleet Sub-Council (Sub-Council) to help develop, implement, and improve programs, plans, and policies that save money, reduce emissions, promote domestic fuel use, and conserve natural resources. The Sub-Council will:
- Develop standard procedures and formulas for modeling and monitoring potential alternative fuel vehicles (AFVs) and fuel reduction efforts that link acquisition and operations budgets;
- Create an idle reduction policy for state agencies;
- Create a process that allows fleet coordinators to replace vehicles with AFVs before standard retirement age if the replacement is cost-effective;
- Identify and evaluate other fuel-saving practices and develop procedures for their implementation; and
- Evaluate alternative financing options for state fleet vehicles including leasing, energy performance contracting, and other options that may reduce costs.
In addition, DPA and CDOT will establish policies and procedures to promote the cost-effective use of non-petroleum fuel vehicles and other fleet efficiency improvements. The policies must strive for the use of non-petroleum based fuels at least 90% of the time when cost-effective.
(Reference Executive Order D 2015-013, 2015)
State Agency Petroleum Reduction and Reporting Requirements
Archived: 12/31/2019
Colorado state agencies and departments must reduce petroleum-based fuel consumption on a per vehicle basis and across the fleet. For non-exempt vehicles, the minimum annual reduction is 4% per vehicle, and at least 20% by Fiscal Year (FY) 2020 compared to a FY 2015 baseline. The exempt vehicle requirement is a minimum annual reduction of 2% per vehicle, and at least 10% by FY 2020. State agencies and departments must also achieve a total reduction in petroleum-based fuel consumption by 15% (or 7.5% for exempt vehicles) by FY 2020. The Colorado Department of Personnel and Administration may consider certain vehicles to be exempt based on agency requests; agencies must request vehicle exemptions prior to establishing the FY 2015 baseline.
State agencies must use EnergyCAP to track progress towards these goals. All state executive agencies and departments will provide the Colorado Greening Government Coordinating Council (Council) with any information not captured in EnergyCAP that is needed to complete calculations and reporting.
(Reference Executive Order D 2015-013, 2015)
Workplace Charging Evaluation
Archived: 12/31/2019
Colorado state agencies and departments must evaluate opportunities to improve commuting options for employees, including the installation of workplace charging for plug-in electric vehicles. Agencies and departments may coordinate with the Colorado Energy Office as needed for technical support. (Reference Executive Order D 2015-013, 2015)
High Occupancy Vehicle (HOV) Lane Exemption
Archived: 10/01/2019
The Colorado Department of Transportation (CDOT) allows hybrid electric vehicles that are certified as inherently low emission vehicles (ILEVs) to travel in HOV and high occupancy toll (HOT) lanes. Qualifying vehicles must obtain a permit and display an HOV exemption decal and a toll transponder. CDOT reached its quota of 2,000 permits and will place new applicants on a waiting list (verified June 2019). For more information, visit the CDOT Hybrid Vehicle Use in the HOT/HOV Lanes website.
(Reference Colorado Revised Statutes 42-4-1012)
Biogas Production Sales Tax Exemption
Repealed: 07/01/2019
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)
Low Emission Vehicle (LEV) Standards Requirement
Archived: 11/01/2018
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)
Ethanol Infrastructure Grants
Archived: 06/01/2018
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 Vehicle Tax Credit
Expired: 01/01/2017
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)
Natural Gas Vehicle (NGV) Production Support and Procurement
Archived: 04/01/2016
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.
Biofuels Research Grants
Archived: 06/01/2015
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. (Colorado Revised Statutes 24-48.5-108)
Alternative Fuels Tax and Vehicle Decal
Repealed: 05/15/2013
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 |
| 10,001-16,000 lbs. | $100 |
| 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)
Clean Energy Development Authority
Repealed: 07/01/2012
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)
Truck Emissions Reduction and Fuel Efficiency Grant Program Authorization
Repealed: 05/24/2012
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)
Alternative Fuel, Advanced Vehicle, and Idle Reduction Equipment Tax Credit
Expired: 12/31/2011
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:
| Category | Credit Amount |
|---|---|
| 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)
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:
| 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)
Alternative Fuel Infrastructure Tax Credit
Expired: 01/01/2011
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)
Alternative Fuel and Hybrid Electric Vehicle Tax Credit
Expired: 12/31/2010
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:
| Category | Credit Amount |
|---|---|
| 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)
Greenhouse Gas (GHG) Emissions Reductions
Archived: 08/01/2010
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) Download Adobe Reader