Colorado allows innovative motor vehicle and innovative truck credits for the purchase, lease, or conversion of motor vehicles, trucks, and trailers that use certain alternative fuels. A motor vehicle, truck, or trailer must be titled and registered in Colorado to qualify for the credit. The credit is refundable; to the extent that the amount of the credit exceeds tax, the excess credit is refunded to the taxpayer.
This publication discusses credits for:
• trucks that run on compressed natural gas (CNG), liquefied natural gas (LNG), or liquefied petroleum gas (LPG); and
• idling reduction and aerodynamic technologies.
See FYI Income 69 for information about credits allowed for electric or plug-in hybrid electric vehicles (EV or PHEV) and for electric and plug-in hybrid electric trucks. See section 39-22-516.8, C.R.S., for information about credits allowed for clean fuel refrigerated trailers and hydraulic hybrid conversions.
WHO CAN CLAIM INNOVATIVE TRUCK CREDITS? A credit can be claimed by any taxpayer for each qualifying truck they purchase, lease, or convert. A taxpayer can also claim a credit for each modification to install idling reduction or aerodynamic technologies on a qualifying truck they have titled and registered. In the case of a lease of a qualifying truck, the credit is allowed to the lessee and not to the lessor. State and local governments cannot claim the credit.
QUALIFYING TRUCKS, CONVERSIONS, AND DEVICES There are both general and specific requirements for a truck, conversion, or modification to qualify for the credit. Credits may be claimed only with respect to trucks that meet the following criteria.
• For purchases or leases, the truck must be new and not previously titled or registered in any jurisdiction.
• In the case of conversion, the conversion must be EPA certified.
• The truck must be titled and registered in Colorado or base plated in Colorado if registered via IRP.
• The truck must have a maximum speed of at least 55 miles per hour.
• The truck, conversion, or device must qualify under one of the categories listed in the table below.