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State and Federal Incentives and Laws

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Colorado Registration Requirements

Alternative Fuels Tax and Vehicle Decal

Fuel tax exemptions are granted for compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicle owners. Owners of CNG and LPG fueled vehicles are required to purchase an annual tax decal from the Colorado Department of Revenue or a decal vendor as follows:

Gross Vehicle Weight Rating in Pounds (lbs.)Annual License Tax Fee
1-10,000 lbs$70
10,001-16,000 lbs.$100
Over 16,000 lbs.$125

All CNG and LPG 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)

Alternative Fuel Vehicle (AFV) Registration

Upon registering a motor vehicle with the Colorado Department of Revenue Division of Motor Vehicles, the vehicle owner must report the types of alternative fuel used to operate the vehicle and whether the vehicle is dual-fueled or dedicated to one alternative fuel. Forms provided by the Department of Revenue for the purpose of registering motor vehicles must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol or M85, ethanol or E85, biodiesel, and other. (Reference Colorado Revised Statutes 42-3-113)