Alternative Fuel Vehicle Tax Credits
Since 1992, Colorado has offered the innovative motor vehicle income tax credit for people who purchase or lease alternative fuel vehicles, or who convert their existing vehicle to run on an alternative fuel source. Qualifying vehicle types include electric vehicles, plug‑in hybrid electric vehicles, liquefied petroleum gas (LPG) vehicles, and compressed natural gas (CNG) vehicles. The credit is worth up to $6,000 for passenger vehicles and more for trucks. For additional information, consult a dealership or this Issue Brief. The tax credit is set to expire on January 1, 2022. The table below outlines the tax credits for qualifying vehicles.
State Income Tax Credits for Alternative Fuel Vehicles |
|---|
|
Vehicle Type |
Vehicle Type |
Tax Year 2018 |
Tax Year 2019 |
Tax Year 2020 |
Tax Year 2021 |
|---|---|---|---|---|---|
|
Purchased alternative fuel vehicle |
Passenger Vehicles |
$5,000 |
$5,000 |
$4,000 |
$2,500 |
|
Light duty trucks* |
$7,000 |
$7,000 |
$5,500 |
$3,500 |
|
|
Medium duty trucks** |
$10,000 |
$10,000 |
$8,000 |
$5,000 |
|
|
Heavy duty trucks*** |
$20,000 |
$20,000 |
$16,000 |
$10,000 |
|
|
Leased alternative fuel vehicle |
Light duty trucks* |
$3,500 |
$3,500 |
$2,750 |
$1,750 |
|
Medium duty trucks** |
$5,000 |
$5,000 |
$4,000 |
$2,500 |
|
|
Heavy duty trucks*** |
$10,000 |
$10,000 |
$8,000 |
$5,000 |
|
|
Passenger Vehicles |
$5,000 |
$5,000 |
$4,000 |
$2,500 |
|
|
Converted alternative fuel vehicle |
Passenger Vehicles |
$5,000 |
$5,000 |
$4,000 |
$2,500 |
|
Light duty trucks* |
$7,000 |
$7,000 |
$5,500 |
$3,500 |
|
|
Medium duty trucks** |
$10,000 |
$10,000 |
$8,000 |
$5,000 |
|
|
Heavy duty trucks*** |
$20,000 |
$20,000 |
$16,000 |
$10,000 |