Incentives — USA

Colorado


Low Emission Vehicle Sales Tax Exemption

  • What:
    Vehicles certified to federal LEV standards or better are exempt from state sales tax. Applies to vehicles over 10,000lbs GVWR.
  • How Much:
    2.9%

AFV and HEV Rebate

  • What:
    Rebate for vehicles owned by the state, a political subdivision of the state, or a tax-exempt organization and be used in connection with the official activities of the entity.
  • How Much:
    75% of the incremental cost of the vehicle up to $350,000 per fiscal year per entity.

Alternative Fuel, Advanced Vehicle and Idle Reduction Equipment Tax Credit

  • What:
    Income tax credit for a motor vehicle titled and registered in Colorado that uses or is converted to use an alternative fuel, is a hybrid electric vehicle, etc.
  • How Much:
    The credit is capped at $6,000 for the following: alternative fuel vehicles (AFVs), AFV conversions, HEVs, plug-in hybrid electric vehicles (PHEVs), PHEV conversions, idle reduction technologies, and power source replacements: there is no cap on natural gas vehicles. Between 2012 and 2016, the cap on PHEV conversions increases to $7,500.