Colorado Laws and Incentives for Hydrogen Fuel Cells
The list below contains summaries of all Colorado laws and incentives related to Hydrogen Fuel Cells.
State Incentives
Alternative Fuel, Advanced Vehicle, and Idle Reduction Technology 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 electric vehicle (HEV), or has its power source replaced with one that uses an alternative fuel. Qualified idle reduction technologies are also eligible for the tax credit. Credits are based on defined vehicle and technology categories as follows:
| Category | 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 | 75% | 75% | 75% | 75% |
| 2 - Light-duty diesel-electric hybrid passenger vehicle with a minimum fuel economy of 70 miles per gallon (mpg) | 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%; or a new diesel-electric or gasoline-electric hybrid medium-duty truck with 30% greater fuel economy than a comparable vehicle | 55% | 35% | 25% | 25% |
| 4 - Light-duty passenger vehicle, light-duty truck, or medium-duty truck powered by compressed natural gas, either original equipment manufacturer or converted vehicles | 55% | 35% | 25% | 25% |
| 5 - Idle reduction technologies | 25% | 25% | 25% | 25% |
| 6 - Vehicle meeting Tier 2, Bin 2 or 3 federal emissions standards, with a fuel economy of at least 40 mpg | 10% | 10% | 0% | 0% |
The credit is capped at $6,000 for the following: alternative fuel vehicles (AFVs), AFV conversions, HEVs, plug-in hybrid electric vehicles (PHEVs), idle reduction technologies, and power source replacements. The credit for PHEV conversions is capped at $7,500. Individuals who claimed a tax credit in previous years for the purchase of a Model Year 2004 or newer HEV may be eligible to claim an additional credit for the conversion of the same vehicle to a PHEV. Credits generated after January 1, 2010, that exceed the tax due are refundable but cannot be carried forward. Used vehicles may qualify with proof that the prior owners did not claim the tax credit. For additional information regarding tax years prior to January 1, 2012, see the Department of Revenue's Income 9 FYI publication. For additional information regarding tax years after January 1, 2012, see the Income 67 FYI publication.
(Reference Colorado Revised Statutes 39-22-516)
Point of Contact
John Doty
Manager, Sales Tax Administration Unit
Colorado Department of Revenue
Phone: (303) 205-8211 x6889
Fax: (303) 866-3211
jdoty@spike.dor.state.co.us
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. (Reference Colorado Revised Statutes 42-3-113)
Clean Energy Development Authority
The Colorado Clean Energy Development Authority may issue bonds to finance projects that involve the production, transportation, and storage of clean energy. Clean energy is defined as fuels that are produced and energy that is derived from sources including but not limited to the following: biodiesel; biomass resources, such as biogas, agricultural or animal waste, landfill gas, and anaerobically digested waste biomass; biomass resources that do not include energy generated by use of fossil fuel; fuel cells that do not use fossil fuels; and zero-emissions generation technology, including emission of carbon dioxide, with long-term production potential. (Reference Colorado Revised Statutes 40-9.7-101 through 110)
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)