Colorado Rebates
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Rebate
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 of Colorado, 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.
For costs incurred between July 1, 2006, and July 1, 2009, the rebate percentages are as follows:
| Certification Level | Percentage |
|---|---|
| Low Emission Vehicle | 25% |
| Ultra Low or Inherently Low Emission Vehicle | 50% |
| Zero Emission Vehicle (ZEV) | 75% |
For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is at least 10 years old, the percentage specified in the table above is doubled, up to a maximum of 100% of the incremental or conversion cost.
For costs incurred between July 1, 2009, and July 1, 2015, the rebate percentages are as follows:
| Category | July 1, 2009, to July 1, 2010 | 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 | 85% | 75% | 75% | 75% | 75% |
| 2 - Light-duty diesel-electric hybrid passenger vehicle with a minimum fuel economy of 70 miles per gallon (mpg) | 65% | 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 | 75% | 55% | 35% | 25% | 25% |
| 4 - Light-duty passenger vehicle, light-duty truck, or medium-duty truck natural gas conversions | 75% | 55% | 35% | 25% | 25% |
| 5 - Idle reduction technologies | 25% | 25% | 25% | 25% | 25% |
| 6 - Vehicle meets Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 40 mpg | 75% | 10% | 10% | 0% | 0% |
Each qualified entity is limited to $350,000 per state fiscal year in total rebates paid.
(Reference House Bill 1331, 2009, and Colorado Revised Statutes 39-33-101 through 39-33-106)
Point of Contact
John Doty
AFV/Hybrid Taxes and Rebates
Colorado Department of Revenue
Phone (303) 205-8211
jdoty@spike.dor.state.co.us
http://www.revenue.state.co.us/mv_dir/home.asp
