Electric vehicle and infrastructure grant funding. The state has a grant program set up for EVs and electric vehicle charging stations, also known as EV supply equipment (EVSE). The Regional Air Quality Council (RAQC) provides the funding for the vehicles, and that funding is limited to the Seven County Denver Metro Area. The grants can cover the lower of 80% of the incremental cost of a qualified EV or $8,260. The EVSE funding is available throughout the state and is jointly provided by the Colorado Energy Office (CEO) and the RAQC. The EVSE grants can cover the lower of 80% of an electric vehicle charging unit or $6,260. These grants are available for Level 2 and Level 3 chargers.
Natural gas and propane vehicle grant funding. The Regional Air Quality Council (RAQC) has funding that will cover up to 80% of the incremental cost between a conventional vehicle and its natural gas or propane comparison. A 20% match is required to receive funding, and is only available in the Seven County Denver Metro Area. Eligible vehicles include: school buses, trash trucks, water trucks, delivery vehicles, transit buses and other on-road vehicles greater than 14,500 GVWR.
The above tax credit calculations are for illustrative purposes only. Please consult a tax professional, Federal Internal Revenue Service, and Colorado Department of Revenue for actual figures. The numbers entered are examples to help explain the calculations. They do not reflect actual tax credit values.
Innovative Motor Vehicle Tax Credit
Detailed information for light duty passenger electric vehicles is shown above. However, Colorado's innovative motor vehicle tax credits apply to larger electric vehicles as well as all qualifying natural gas vehicles, propane vehicles, and hydrogen vehicles. In addition, idle reduction devices, aerodynamic technologies, and clean fuel trailers qualify for innovative motor vehicle tax credits.
The charts below show tax credit percentages for vehicles. The percentages are generally applied to the actual cost of vehicle purchase, conversion, or lease after subtracting rebates, grants, and federal tax credits. The one exception is electric vehicle purchases, in which case the percentages apply to the base model manufacturer's suggested retail price (MSRP), again after subtracting rebates, grants, and federal tax credits.
Low Emission Vehicle Sales (LEV) Tax Exemption
Vehicles and associated parts over 10,000 GVW that meet federal LEV standards may be exempt from sales tax. Visit Low Emission Vehicle Sales (LEV) Tax Exemption for more information.
Federal Qualified Plug-In Electric Drive Motor Vehicle Tax Credit
Get up to $7,500 tax credit for qualifying plug-in electric vehicles. See Federal Qualified Plug-In Electric Drive Motor Vehicle Tax Credit for more information.
Federal Alternative Fuel Infrastructure Tax Credit
Tax credit for 30% of qualifying alternative fuel infrastructure projects not to exceed $30,000. Individuals who install qualifying equipment (EV charging station) can receive a $1,000 tax credit. See Federal Alternative Fuel Infrastructure Tax Credit for more information.
Alternative Fuel Excise Tax Credit
A $.50/gallon tax credit for qualifying alternative fuels. Tax-exempt entities qualify for this credit. See Alternative Fuel Excise Tax Credit for more information.
Biodiesel Income Tax Credit
Taxpayers delivering or utilizing B100 may qualify for up to $1.00/gallon tax credit. See Biodiesel Income Tax Credit for more information.
AFVs gross vehicle weight ratings may exceed conventional vehicles by 1,000 lbs on highways that are not part of the interstate system. See Alternative Fuel Vehicle (AFV) Weigh Limit Exemption for more information.
Natural gas fueling stations are exempt from air quality permitting. See Natural Gas Fueling Station Air Quality Permit Exemption for more infromation.
Individuals may pursue the installation of EVSE where they live as long as they pay for associated costs. See Electric Vehicle Supply Equipment (EVSE) in HOAs and Multi-Unit Housing for more information.
Fuel tax structure for each alternative fuel - see Colorado Alternative Fuel Excise Taxes, Plug-in Electric Vehicle Decal System for more information.
A summation of alternative fuel policies at the federal level - see Summary and History of Federal Alternative Fuel Policies for more information.