Incentives in Colorado:
The Denver Metro Clean Cities Coalition is not a tax advisor. Please consult a qualified tax advisor with questions.
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. You can find out the details from the Colorado Department of Revenue document FYI Income 69.
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 please see Colorado Department of Revenue document 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 see Colorado Department of Revenue document FYI Income 69.
The Colorado Energy Office (CEO) is currently accepting applications for the ALT Fuels Colorado Electric Vehicle Direct Current Fast-Charging (DCFC) Plazas Program. This funding opportunity is designed to increase access to high-speed charging in and around the Denver Metro Area for public users and high-mileage fleets like Transportation Network Companies (TNCs). CEO will consider Plaza locations outside the Metro Area with a strong business case. CEO anticipates that proposed plaza locations will be in and around downtown areas, near high density housing and commercial developments, near transit hubs, and in locations where there is a high density of TNC/fleet EV drivers living. Proposed locations must take into account proximity of existing and planned DCFC locations and the potential for high utilization.
This opportunity is distinct from Charge Ahead Colorado as it expands requirements associated with planning, design, and operation. The result will be more strategic deployment of high-speed charging infrastructure needed by drivers without regular access to home or workplace charging or in need of quick, opportunity-based charging. Awarded applicants will enter into a contract with CEO for the construction term plus five years of continuous plaza operation.
CEO will administer two application periods for the program: one in the summer of 2020 and one in early 2021. Click here for program information including the Request for Applications (RFA), funding levels, and key activities and dates.
Charge Ahead Colorado typically has three application rounds per year in January, May and October. The next round of funding will be open Fall 2020. Public and private entities interested in installing a level II or DC fast charging station are encouraged to apply. More information on the Charge Ahead Grant is available here. If you need help with your application, call us – we offer free coaching services for this funding opportunity. Contact us for more information on assisting you with your grant application .
The ALT Fuels Colorado grant will have its next funding cycle in Fall 2020. This program uses VW Settlement funding to incentivize the purchase of fully electric or renewable natural gas (RNG) powered Class 8 Local Freight Trucks (Heavy-Duty), Class 4-7 Local Freight Trucks (Medium-Duty), Class 4-8 School and Shuttle Buses, railroad freight switchers, airport ground support equipment, heavy forklifts and port cargo handling equipment. ALT Fuel Colorado information available here.
The U.S. Department of Agriculture (USDA) will make up to $100 million in competitive grants available through the Higher Blends Infrastructure Incentive Program (HBIIP). Grants will be available to fueling and distribution facilities to install, retrofit, or upgrade fuel storage, dispenser pumps, infrastructure, and related equipment to convert to higher ethanol (greater than 10%) and biodiesel (greater than 5%) blends. Grants for up to 50% of total eligible project costs, but not more than $5 million, will be available to vehicle fueling facilities, such as local fueling stations, convenience stores, hypermarket fueling stations, fleet facilities, fuel terminal operations, midstream partners, and/or distribution facilities. The USDA plans to publish application deadlines and other program information in the Federal Register and Grants.gov in the near future. For more information, visit the USDA HBIIP website and read the press release.
Several alternative fuel federal tax credits were retroactively reinstated and extended when the federal budget was passed in December. This includes tax credits for biodiesel, CNG and propane, and for fueling infrastructure for E85, biodiesel, CNG, propane and electricity, including residential.Be sure to take a look at the Alternative Fuels Data Center to see what’s changed and how you can take advantage of these updated tax credits.
Charge Ahead Colorado
This grant program will fund 80% of the incremental cost, up to $8,260/vehicle, of a plug-in electric vehicle for entities located within the seven-county Denver Metro area that are ineligible for the state tax credit. The grant will also cover 80% of project costs associated with charging stations, up to $6,260 for Level 2 and $16,000 for Level 3 chargers, for entities located throughout the state. The grant is jointly administered by the Colorado Energy Office and Regional Air Quality Council. Full details and information can be found at their website.
- Application rounds every 3 months
ALT Fuels Colorado
This grant program will fund 80% of the equipment cost associated with compressed natural gas (CNG) fueling stations, up to $500,000. The grant will also fund propane and DC fast charging stations, up to $50,000, if they are co-located at an awarded CNG station. This portion of the grant is being administered by the Colorado Energy Office. The application and full details can be found at their website.
- Application rounds every 6 months
ALT Fuels Colorado will also fund up to 80% of the incremental cost for natural gas, propane, or plug-in electric vehicles over 6,000 lbs. Vehicles must operate within Colorado’s federally-designated ozone non-attainment or carbon monoxide maintenance areas at least 60% of the time (program area map). Funding caps are set according to vehicle weight classes, and differ among public or private organizations. This portion of the grant is being administered by the Regional Air Quality Council. The application and full details can be found at their website.
- There will be three funding cycles per year through the end of 2017
Department of Local Affairs (DOLA) Alternative Fuels Funding Program
In partnership with the Colorado Energy Office and Regional Air Quality Council, DOLA’s Energy and Mineral Impact Assistance Program Tier II application cycle will fund alternative fuel vehicles (AFVs), alternative fuel infrastructure, and maintenance facility upgrades that support AFVs. Only public entities (local governments and special districts) qualify. Infrastructure projects require a 25% minimum match. For vehicles, 100% of the incremental cost between an AFV and it’s conventional equivalent would be funded. Full details and applications can be found at their website.
- Applications due three times a year: April 1, August 1, December 1
RAQC Grant Opportunity
Are you interested in converting your lawn & garden equipment?
The Regional Air Quality Council is now requesting applications to fund the purchase of low emission, commercial-grade, lawn and garden equipment. Eligible entities include public agencies within the Denver Metro/North Front Range 9-county ozone non-attainment area. This online application will be open continuously until funding is expended. Funding is available on a first-come-first-served basis with a minimum award of $1,000 and maximum award of $15,000 per entity. Grant funding will cover:
- Up to 50% of the purchase price of a battery electric hand held equipment, batteries, and chargers.
- *$2,000 towards the purchase of a battery-powered commercial grade lawn mower.
- *$1,000 towards the purchase of a propane powered commercial grade lawn mower.
If you are interested in applying for this grant opportunity, please apply through the RAQC online application.
Colorado State Tax Credits
Colorado offers a substantial tax credit for alternative fuel vehicles that are purchased new or converted, as well as idle reduction equipment, aerodynamic technologies, and clean fuel refrigerated trailers. Tax credits are categorized according to the fuel or technology type and vehicle weight class, and each category has a credit cap ranging anywhere from $6,000-$20,000. Details can be located on the Refuel Colorado website or by reviewing the Department of Revenue’s guidance document, FY Income 67. For assistance, don’t hesitate to contact Clean Cities at JWHeiss@lungs.org.