Alternative Fuel Vehicle Tax Credits

NOTE: THE COLORADO ENERGY OFFICE CANNOT PROVIDE ANY TAX-RELATED ADVICE.
Questions about the Colorado Electric Vehicle Tax Credit? Contact the Colorado Department of Revenue at 303.238.7378.

Tax credits are available in Colorado for the purchase or lease of electric vehicles and plug-in hybrid electric vehicles. Examples of electric vehicles include: Chevy Bolt, Tesla Model 3, Kia Niro EV, Nissan LEAF, Hyundai Kona EV, Audi e-tron, Rivian R1T, Porsche Taycan, and Jaguar I-Pace. Examples of plug-in hybrid electric vehicles include: Mitsubishi Outlander PHEV, Prius Prime, Volvo XC60 PHEV, BMW 330e, Chrysler Pacifica PHEV, Ford Fusion Energi, Honda Clarity PHEV, and Subaru Crosstrek PHEV. 

 FYI Income 69 answers the following FAQs about the EV Tax Credit:

  1. Am I still eligible for the tax credit if I purchase a new electric vehicle outside of Colorado?

  2. How do I know if the vehicle I want to purchase is eligible for the tax credit?

  3. How do I claim the credit?

  4. If I buy more than one vehicle, can I get the credit for each vehicle?

  5. How much is the credit for?

  6. How can the credit be assigned at point of sale to a financing entity?

  7. Does the credit apply to used electric vehicles?

Information on tax credits for all alternative fuel types:

Tax credits are available in Colorado for the purchase, lease and conversion of light, medium and heavy duty alternative fueled vehicles (electric/EV, plug-in hybrid or PHEV, compressed natural or CNG, liquefied natural gas or LNG, liquefied petroleum gas or LPG, and hydrogen.) These credits were simplified effective Jan. 1, 2017. No credit is allowed for the purchase or lease of a used vehicle made on or after Jan. 1, 2017.

Information on credits available for motor vehicles that operate on CNG, LNG, LPG or hydrogen, and for information about the innovative truck credit for tax years commencing prior to Jan. 1, 2017: FYI Income 68.

Information on credits for purchase, lease, or conversion of motor vehicles that are EVs, PHEV, or that are run on CNG, LNG, LPG, or hydrogen or for idling reduction and aerodynamic technologies, clean fuel refrigerated trailers, and hydraulic hybrid conversions for tax years beginning on or after Jan. 1, 2017, but prior to Jan. 1, 2022: FYI Income 69.

 

Information for dealers and finance companies on how to submit an Innovative Motor Vehicle Tax Credit: