Search Federal and State Laws and Incentives

Any motor vehicle equipped with a qualified auxiliary power unit or idle reduction technology may exceed the state's gross, total axle, or bridge formula vehicle weight limits by up to 550 pounds to compensate for the additional weight of the idle reduction technology. To be eligible for the weight exemption, the vehicle operator must be able to provide written proof idle reduction technology weight and demonstrate or certify that it is fully functional at all times. (Reference 8 Code of Colorado Regulations 1507-28)

The Colorado Energy Office, Department of Transportation (CDOT), Department of Public Health and Environment, and Department of Personnel and Administration (DPA) will establish a State Fleet Sub-Council (Sub-Council) to help develop, implement, and improve programs, plans, and policies that save money, reduce emissions, promote domestic fuel use, and conserve natural resources. The Sub-Council will:

• Develop standard procedures and formulas for modeling and monitoring potential alternative fuel vehicles (AFVs) and fuel reduction efforts that link acquisition and operations budgets;
• Create an idle reduction policy for state agencies;
• Create a process that allows fleet coordinators to replace vehicles with AFVs before standard retirement age if the replacement is cost-effective;
• Identify and evaluate other fuel-saving practices and develop procedures for their implementation; and
• Evaluate alternative financing options for state fleet vehicles including leasing, energy performance contracting, and other options that may reduce costs.

In addition, DPA and CDOT will establish policies and procedures to promote the cost-effective use of non-petroleum fuel vehicles and other fleet efficiency improvements. The policies must strive for the use of non-petroleum based fuels at least 90% of the time when cost-effective.

(Reference Executive Order D 2015-013, 2015)

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.

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)