Colorado Alternative Fuel Vehicle Income Tax Credit

Article ID: 33703  

Question
Colorado Alternative Fuel Vehicle Income Tax Credit

Answer

ALTERNATIVE FUEL CREDIT

Colorado allows income tax credits to taxpayers who have purchased an alternative fuel vehicle, converted a motor vehicle to use alternative fuel, or have replaced a vehicle’s power source with an alternative fuel power source. To qualify, the vehicle must be titled and registered in Colorado. [§39-22-516, C.R.S.]

Definition of Alternative Fuel

"Alternative fuel" means compressed natural gas, propane, ethanol, or any mixture of ethanol containing eighty-five percent or more ethanol by volume with gasoline or other fuels, electricity, or any other fuels, which fuels may include, but are not limited to, clean diesel and reformulated gasoline so long as these other fuels make comparable reductions in carbon monoxide emissions and brown cloud pollutants as determined by the air quality control commission. "Alternative fuel" does not include any fuel product, as defined in section §25-7-139 (3), C.R.S. that contains or is treated with methyl tertiary butyl ether (MTBE).

For computation of the credit please see Colorado FYI Income 9.

 


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