Colorado Laws and Incentives for Hydrogen Fuel Cells
The list below contains summaries of all Colorado laws and incentives related to Hydrogen Fuel Cells.
Alternative Fuel, Advanced Vehicle, and Idle Reduction Technology Tax Credit
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 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 55 miles per hour. Qualified idle reduction technologies are also eligible for the tax credit. Credits for vehicles purchased or converted January 1, 2012, through December 31, 2021, are based on defined vehicle and technology categories as listed below. Credit amounts vary for each category and tax year with percentages applying to incremental cost for alternative fuel vehicle (AFV) purchases and power source replacements and actual cost for conversions and idle reduction technologies.
|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)||25%||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%||35%||25%||18.75%||12.5%||6.52%|
|4 - Dedicated or bi-fuel OEM light-duty passenger vehicle, light-duty truck, or medium-duty truck powered by compressed natural gas (CNG) or liquefied petroleum gas (LPG or propane)||10.5%||12.25% (2014-2016); 10.5% (2016-2018)||7.875%||5.25%||2.625%|
|4A - Dedicated or bi-fuel light-duty passenger vehicle, light-duty truck, or medium-duty truck converted to use CNG or propane||35%||25%||18.75%||12.5%||6.25%|
|5 - Idle reduction technologies||25%||25%||18.75%||12.5%||6.25%|
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 2013-2018, 0.75 for 2019, 0.50 for 2020, and 0.25 for 2021.
The credit is capped at $6,000 for the following: OEM or converted AFVs, HEVs, PHEVs, idle reduction technologies, and power source replacements. The credit for PHEV conversions is capped at $7,500 until January 1, 2014, and $6,000 thereafter. 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 CNG, electric, and plug-in hybrid electric vehicles purchased, leased, or converted during the 2013 tax year may be determined in one of two different ways. For more information, see the Department of Revenue's Income 67 FYI publication.
Point of Contact
Tax Examiner III
Colorado Department of Revenue
Phone: (303) 205-8211 x6871
Fax: (303) 866-3050
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 25-7-106.8 and 42-4-508)
Laws and Regulations
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 type of alternative fuel used to operate the vehicle and whether the vehicle is dedicated to one alternative fuel or uses more than one fuel. The Department of Revenue provides forms for the purpose of registering motor vehicles and must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol/M85, ethanol/E85, biodiesel, and other. For more information, please see the Colorado Department of Revenue Division of Motor Vehicles page. (Reference Colorado Revised Statutes 42-3-113)
Alternative Fuel Definition
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, but are not limited to, 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)
Gasoline Gallon Equivalent (GGE) Definition
The term GGE is defined to equate the energy content of any motor fuel, including alternative fuels, to that of a gallon of gasoline. Any dispenser used for the sale of motor fuel in GGEs must display GGEs as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5)