Fuel Reduction Technology Tax Credit

Fuel reduction technologies are eligible for a tax credit equal to a percentage of the actual cost paid for the technology. The actual cost paid must account for eligible federal credits, grants, or rebates; therefore taxpayers must subtract credits, grants, or rebates amounts before applying the percentage calculations listed below.

Category2017-2018201920202021
Idle reduction technologies25% (up to $6,000)25% (up to $6,000)25% (up to $6,000)25% (up to $6,000)
Aerodynamic technologies25% (up to $6,000)25% (up to $6,000)25% (up to $6,000)25% (up to $6,000)
Clean fuel refrigerated trailer15% (up to $7,500)11.75% (up to $7,500)7.5% (up to $7,500)3.75%(up to $7,500)
Conversion to a clean fuel refrigerated trailer45% (up to $7,500)33.75% (up to $7,500)22.5% (up to $7,500)11.25% (up to $7,500)
Hydraulic hybrid trailer$5,000$5,000$4,000$2,500

A purchaser of a converted hydraulic hybrid trailer may assign the tax credit to the financing entity, allowing the purchaser to realize the value of the tax credit at the time of conversion. The financing entity may collect an administrative fee of no more than $150.

For more information, including maximum credit amounts, see the Colorado Department of Revenue's Income 69 FYI publication.

(Reference Colorado Revised Statutes 39-22-516.7 and 39-22-516.8)