Colorado
Alternative Fuel Definition
Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture of ethanol containing 85% or more ethanol by volume with gasoline or other fuels, electricity, or any other fuels, which may include, but are not limited to, clean diesel and reformulated gasoline, so long as these other fuels make comparable reductions in carbon monoxide emissions and brown cloud pollutants as determined by the air quality control commission. 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)
Alternative Fuel Infrastructure Tax Credit
For tax years beginning prior to January 1, 2011, the Colorado Department of Revenue offers an income tax credit for 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. The credit value is 35% of the cost if claimed during the 2009 tax year, and 20% of the cost if claimed during the 2010 or 2011 tax year.
For an alternative fueling facility that will be generally accessible for use by the public, in addition to the person claiming the credit, the percentages specified above will be 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 percentages specified above will be multiplied by 1.25. Certification for the percentage of renewable energy must be presented, as requested, to the Department of Revenue. The credit has a maximum value of $400,000 in any consecutive five-year period for each fueling facility. For more information about this credit, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site.
(Reference Colorado Revised Statutes 39-22-516)
Point of Contact
Division of Taxation
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp
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
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)
Alternative Fuel Vehicle (AFV) Weight Limit Exemption
Gross vehicle weight rating limits for AFVs are 1,000 pounds greater than those for comparable conventional vehicles, as long as the AFVs operate using an alternative fuel or both alternative and conventional fuel, when operating on a highway that is not part of the interstate system. (Reference Colorado Revised Statutes 42-4-508)
Electric Vehicle (EV) Charging Infrastructure Grants
Grants are available to local governments for the installation of EV charging stations. Grants are prioritized based on the local government's commitment to energy efficiency. (Reference Senate Bill 075, 2009 and Colorado Revised Statutes 24-38.5-102 and 24-38.5-103)
Greenhouse Gas (GHG) Emissions Reductions
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
Low-Speed Electric Vehicle (EV) Access to Roadways
A low-speed EV is a self-propelled vehicle using electricity as its primary propulsion method, has at least three wheels in contact with the ground, does not use handlebars to steer, and meets manufacturer requirements as defined in Title 49 of the Code of Federal Regulations, section 565. A low-speed EV may be operated only on a roadway with a speed limit of 35 miles per hour (mph) or less; a low-speed EV may directly cross a roadway with a speed limit greater than 35 mph.
A Class B low-speed EV is defined as a low-speed EV which is capable of traveling at greater than 25 mph but less than 45 mph and may be operated only on a roadway with a speed limit of 45 mph or less; a Class B low-speed EV may directly cross a roadway with a speed limit greater than 45 mph. Neither a low-speed EV nor a Class B low-speed EV may be operated on a limited-access highway. The Colorado Department of Revenue may not register or issue a title for a Class-B low-speed EV until after the U.S. Department of Transportation has adopted a federal motor vehicle safety standard for low-speed EVs that authorizes operation at greater than 25 mph but less than 45 mph.
Low-speed EVs may not be sold or offered for sale unless they comply with state vehicle safety requirements.
(Reference Senate Bill 075, 2009, and Colorado Revised Statutes 12-6-120, 42-1-102, 42-4-109.5, 42-4-109.6)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit
An income tax 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, is a hybrid vehicle, or has its power source replaced with one that uses an alternative fuel. For vehicles purchased or converted between January 1, 2007, and January 1, 2010, the percentage of the actual or incremental cost that may be claimed as a credit is as follows:
| Type of Vehicle | Percentage |
|---|---|
| Low Emission Vehicle | 50% |
| Ultra Low or Inherently Low Emission Vehicle | 75% |
| Zero Emission Vehicle (ZEV) | 85% |
Beginning January 1, 2010, tax credits are based on specified state-defined vehicle categories as follows:
| Category | January (Jan.) 1, 2010, to Jan. 1, 2012 | Jan. 1, 2012, to Jan. 1, 2013 | Jan. 1, 2013, to Jan. 1, 2014 | Jan. 1, 2014, to Jan. 1, 2015 | Jan. 1, 2015, to Jan. 1, 2016 |
|---|---|---|---|---|---|
| 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% |
| 7 - Vehicle meets Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 30 but less than 40 mpg. (Excludes original equipment manufactured natural gas vehicles.) | 50% | 0% | 0% | 0% | 0% |
These credits are capped at $6,000 for the following: AFVs, AFV conversions, HEVs, plug-in hybrid electric vehicles (PHEVs), PHEV conversions, idle-reduction technologies, and power source replacements; there is no cap on natural gas vehicle conversions. Between 2012 and 2016, the cap on PHEV conversions increases to $7500. Individuals who claimed a tax credit in previous years for the purchase of a HEV, Model Year 2004 or newer, may be eligible to claim an additional credit for the conversion of the same vehicle to a PHEV. For credits claimed in tax years 2010 and 2011, Category 3 and Category 4 vehicles that permanently displace vehicles or power sources at least 12 years old are eligible for 1.25 times the credit percentages displayed up to 100%. Additional information is also available from the Governor's Energy Office.
(Reference House Bill 1331, 2009, and Colorado Revised Statutes 39-33-101 to 39-33-106)
Point of Contact
Division of Taxation
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp
