Colorado
High Occupancy Vehicle (HOV) Lane Exemption
Vehicles that meet the definition of the U.S. Environmental Protection Agency (EPA) Inherently Low Emission Vehicle (ILEV) classification and have a gross vehicle weight rating of 26,000 pounds or less may be operated in HOV lanes regardless of the number of occupants and without payment of a special toll or fee. A special sticker must be obtained from the Colorado Department of Transportation. Flexible fuel vehicles are not eligible for the HOV exemption decal. Qualified HEVs must obtain and display an HOV lane exemption decal. Initially, only 2,000 decals will be issued. The program is scheduled to expire on September 30, 2009, unless federal authorization of HEV use of HOV lanes is extended. For more information on the use of HEVs in HOV lanes, see the Colorado Department of Transportation’s Hybrid Vehicle Use in HOV Lanes Web site. (Reference Colorado Revised Statutes 42-4-1012)
Point of Contact
Teresa Carrillo
Commercial Vehicle Operations Manager
Colorado Department of Transportation
Phone (303) 757-9716
Fax (303) 757-9719
teresa.carrillo@dot.state.co.us
Alternative Fuel Use and Vehicle Acquisition Requirement
The Executive Director of the Colorado Department of Personnel has adopted a policy that requires all state-owned diesel vehicles and equipment to be fueled with a fuel blend of 20% biodiesel and 80% petroleum diesel (B20), subject to the availability of the fuel and so long as the price is no greater than $0.10 more per gallon than the price of conventional diesel. Biodiesel is defined as fuel composed of mono-alkyl esters of long chain fatty acids derived from plant or animal matter that meets ASTM specifications and that is produced in Colorado.
The Executive Director has adopted a policy to increase the utilization of alternative fuels and establish increasing utilization objectives for each succeeding year. Beginning January 1, 2008, the Executive Director must purchase flexible fuel vehicles or hybrid electric vehicles, subject to availability, unless the incremental cost of the vehicle is more than 10%. The Executive Director may adopt a policy to allow some vehicles to be exempt from this requirement.
By January 1, 2009, the Executive Director must report to the general assembly the amount of biodiesel used in the state fleet. The report must include the number of gallons purchased since January 1, 2007, the average price of biodiesel, and a description of economic benefits
(Reference Executive Order D0012 07 (PDF 31KB) and Colorado Revised Statutes 24-30-1104) Download Adobe Reader
Point of Contact
Art Hale
Colorado State Fleet Manager
Colorado Dept of Personnel and Administration, Division of Central Services, State Fleet Management
Phone (303) 866-5531
Fax (303) 866-5511
art.hale@state.co.us
http://www.colorado.gov/dpa/dcs/
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Tax Credit
An income tax credit is available from the Colorado Department of Revenue for the purchase of an AFV or the conversion of a vehicle to operate using an alternative fuel, based on the incremental or conversion cost. HEVs also qualify for this incentive. This credit is only available in the year during which the vehicle was purchased or converted, and a vehicle may only qualify for this credit one time. For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is ten or more years old, the percentage specified in the table below is doubled, up to a maximum of 100% of the incremental or conversion cost. To the extent the allowable credit exceeds the person's tax liability for that year the excess may be carried forward for up to five years. Lessees or lessors of qualifying vehicles are also eligible for the credit. The value of the credit is based on the EPA emissions classification of the vehicle as follows:
| Type of Vehicle | Tax Year Beginning Prior to January 1, 2010 | January 1, 2010-January 1, 2012 |
|---|---|---|
| Low Emission Vehicle (LEV) | 50% | 25% |
| Ultra Low or Inherently Low Emission Vehicle (ULEV or ILEV) | 75% | 50% |
| Super Ultra Low or Zero Emission Vehicle (SULEV or ZEV) | 85% | 75% |
Tax credits for Model Year 2008 HEVs and AFVs are as follows:
| Vehicle Model | Tax Credit |
|---|---|
| 2008 Ford Escape Hybrid | $3,417 |
| 2008 Honda Civic Hybrid | $2,599 |
| 2008 Honda Civic GX (Natural Gas) | $5,946 |
| 2008 Lexus GS 450h Hybrid | $5,538 |
| 2008 Lexus LS 600h Hybrid | $13,779 |
| 2008 Lexus RX 400h Hybrid | $3,213 |
| 2008 Mercury Mariner Hybrid | $3,489 |
| 2008 Toyota Camry Hybrid | $1,947 |
| 2008 Toyota Highlander Hybrid (Base Grade) | $4,093 |
| 2008 Toyota Highlander Hybrid (Limited Grade) | $4,403 |
| 2008 Toyota Prius Hybrid (Base Grade) | $2,015 |
| 2008 Toyota Prius Hybrid (Touring Grade) | $3,106 |
For vehicle eligibility updates and historical credit information, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credit Web site. Mild HEVs do not qualify for the credit. Additionally, neighborhood electric vehicles are not eligible because they cannot be operated on Colorado highways.
(Reference Colorado Revised Statutes 39-22-516)
Point of Contact
Tax Information Call Center
Colorado Department of Revenue
Phone (303) 238-7378
http://www.revenue.state.co.us/main/home.asp
Alternative Fuel Vehicle (AFV) Rebate
A rebate is available from the Colorado Department of Revenue for the purchase of an AFV or for the conversion of a vehicle to operate using an alternative fuel. Vehicles must be owned by the State of Colorado, a political subdivision of the state, or a tax-exempt organization, and be used in connection with the official activities of the entity. HEVs also qualify for this incentive. The rebate is a percentage of the incremental cost if used toward purchasing a new AFV, or is a percentage of the conversion cost if used towards the cost of converting a vehicle to operate using an alternative fuel. For an AFV purchase or conversion that permanently replaces a motor vehicle or power source that is ten or more years old, the percentage specified in the table below is doubled, up to a maximum of 100% of the incremental or conversion cost. Each qualified entity is limited to $350,000 per state fiscal year in total rebates paid. The rebate value is as follows:
| Certification Level | For Costs Incurred 2006-2009 | For Costs Incurred 2009-2011 |
|---|---|---|
| Low Emission Vehicle (LEV) | 25% | 0% |
| Ultra Low or Inherently Low Emission Vehicle (ULEV or ILEV) | 50% | 25% |
| Super Ultra Low or Zero Emission Vehicle (SULEV or ZEV) | 75% | 50% |
For more information about this rebate, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site.
(Reference Colorado Revised Statutes 39-33-101 through 39-33-106)
Point of Contact
John Doty
AFV/Hybrid Taxes and Rebates
Colorado Department of Revenue
Phone (303) 205-8211
jdoty@spike.dor.state.co.us
http://www.revenue.state.co.us/mv_dir/home.asp
