Aviation Emission Reduction Offering (AERO)
Supporting infrastructure for Sustainable Aviation Fuel (SAF) supply and distribution to reduce pollution from air transportation.
Funding Overview:
Type: Refundable Tax Credit
Eligibility: Aviation business, Sustainable Aviation Fuel Producer/Distributor, Airports
Amount: $23 million total; max. award amount varies by tax year
Program Length: Until December 31, 2032
Match: Varies
Applications: Now accepted on a rolling basis until 2025 funding runs out. CEO will open rolling applications annually on January 1 until funding for that tax year runs out.
Transitioning to sustainable aviation fuel is an important step to reduce emissions from the transportation sector, moving Colorado closer to meeting its ambitious climate goals. The Aviation Emission Reduction Offering (AERO) is a refundable, competitive tax credit providing financial support for the construction of sustainable aviation fuel supply and distribution facilities.
What is a refundable tax credit? A refundable tax credit is a credit you can receive as a refund on your taxes if the credit amount is more than the amount of taxes you owe in a given tax year.
Contact Information
Eligible Applicants
Any aviation business, sustainable aviation fuel producer, or airport that pays taxes in Colorado.
Eligible Projects
The construction of either:
- A facility that produces sustainable aviation fuel; or
- A facility directly related to enabling the production or distribution of sustainable aviation fuel as defined in the AERO Standards & Guidelines
How to Apply
The Colorado Energy Office (CEO) is currently accepting applications for the AERO tax credit until funding for 2025 runs out.
Download and review all Application Materials and AERO standards and guidelines
Submit completed applications to gov_aero@state.co.us, including all required documents outlined in the Application Checklist
CEO will review the application for compliance with standards and guidelines and make a tax credit award determination
Awardee will receive a tax credit certificate from CEO to file with the Colorado Department of Revenue (DOR) during the tax filing period
DOR will reduce tax liability for the awarded tax year, refunding any remaining amount as applicable
