Alternative Fuel Vehicle Tax Credits
Since 1992, Colorado has offered the innovative motor vehicle income tax credit for people who purchase or lease alternative fuel vehicles, or who convert their existing vehicle to run on an alternative fuel source. Currently, qualifying vehicle types include electric vehicles and plug‑in hybrid electric vehicles. Vehicle conversions no longer receive a credit. Electric and plug-in hybrid electric vehicles are propelled by an electric motor with a battery or a fuel cell that converts a mix of oxygen and hydrogen to electricity. The credit is worth up to $2,500 for passenger vehicles and more for trucks. For additional information, consult a dealership. The table below outlines the tax credits for qualifying vehicles.
State Income Tax Credits for Electric and Hybrid Electric Vehicles
|
Tax Year |
2022 |
2023 |
2024 |
2025 |
|
Electric and Plug-in Hybrid Electric Motor Vehicles* Purchased Vehicles Lease Vehicles |
$2,500 $1,500 |
$2,000 $1,500 |
$2,000 $1,500 |
$2,000 $1,500 |
|
Light Duty Electric and Plug-in Hybrid Electric Trucks** Purchased Vehicles Lease Vehicles |
N/A N/A |
$2,000 $1,750 |
$2,000 $1,750 |
$2,000 $1,750 |
|
Medium Duty Electric and Plug-in Hybrid Electric Trucks**** Purchase Vehicles Leased Vehicles |
N/A N/A |
$4,000 $2,500 |
$4,000 $2,500 |
$4,000 $2,500 |
|
Heavy Duty Electric and Plug-in Hybrid Electric Trucks*** Purchased Vehicles Leased Vehicles |
N/A N/A |
$8,000 $5,000 |
$8,000 $5,000 |
$8,000 $5,000 |