Colorado
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
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
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
Alternative Fuel Use and Vehicle Acquisition Requirement
The Executive Director of the Colorado Department of Personnel has adopted a policy that requires all state-owned diesel vehicles and equipment to be fueled with a fuel blend of 20% biodiesel and 80% petroleum diesel (B20), subject to the availability of the fuel and so long as the price differential is not greater than $0.10 more per gallon as compared to conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets ASTM specifications and that is produced in Colorado.
Additionally, the Executive Director has adopted a policy to increase the utilization of alternative fuels and establish objectives to increase utilization for each succeeding year. In 2009, the Executive Director must purchase flexible fuel vehicles or hybrid electric vehicles, subject to availability, unless the incremental cost of the vehicle is more than 10% greater than the cost of comparable conventional vehicles. Beginning on January 1, 2010, the Executive Director must purchase motor vehicles that operate on compressed natural gas (CNG), subject to the availability of vehicles and adequate fueling infrastructure. If purchases of CNG vehicles are not possible due to the incremental cost being more than 10%, the Executive Director must purchase another type of flexible fuel or hybrid electric vehicle, again subject to availability and incremental costs. The Executive Director may adopt a policy to allow some vehicles to be exempt from this requirement.
(Reference Senate Bill 092, 2009, Executive Order D0012 07 (PDF 31KB) and Colorado Revised Statutes 24-30-1104) Download Adobe Reader
Point of Contact
Art Hale
Colorado State Fleet Manager
Colorado Dept of Personnel and Administration, Division of Central Services, State Fleet Management
Phone (303) 866-5531
Fax (303) 866-5511
art.hale@state.co.us
http://www.colorado.gov/dpa/dcs/
