Colorado has simplified and expanded tax credits for vehicles that run on alternative fuels.
Beginning January 1, $5,000 to $20,000 will be available for each new vehicle purchase or conversion to alternative fuel, according to ngtnews.com. Electric, hydrogen and compressed natural gas are included in House Bill 16-1332.
Tax credit amounts are based on vehicle classification. For instance, a $7,000 tax credit is available for light-duty trucks; $10,000 for medium duty trucks and buses; and $20,000 for heavy-duty trucks and buses.
The legislation will provide between $2,500 and $10,000 for a leased alternative fuel vehicle (AFV).
“This is the best incentive for electric vehicle [EV] sales in the nation at the moment, and we expect it to have a big impact on EV sales in the state,” says Will Toor, director of transportation programs at the Southwest Energy Efficiency Project (SWEEP).
Toor is credited with proposing the notion of assignable tax credits in the Centennial State.
The new legislation will replace a more complex method for income tax credit evaluation that took into account battery size, vehicle purchase price and the buyer’s federal tax credit level.
NGVAmerica is pleased with the new legislation.
“Governor Hickenlooper and the Colorado legislature continue to recognize the strong benefits of using clean-burning natural gas in transportation, and H.B.16-1332 will put more natural gas vehicles on the road,” says Matthew Godlewski, president of NGVAmerica.
“This legislation will help continue the transition to cleaner, low-cost, domestic natural gas for fleets and consumers across Colorado.
“Simplifying alternative fuel vehicle credits is an important step to ensure taxpayers can take advantage of the significant cost savings.”