Colorado
Gasoline Gallon Equivalent Definition
The term gasoline gallon equivalent is defined to equate the energy content of any motor fuel, including alternative fuels, to that of a gallon of gasoline. Any dispenser used for the sale of motor fuel in gasoline gallon equivalents shall display gasoline gallon equivalents as the primary display information provided. (Reference Colorado Revised Statutes 8-20-232.5)
Alternative Fuels Tax and Vehicle Decal
Fuel tax exemptions are granted for compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicle owners. Owners of CNG and LPG fueled vehicles are required to purchase an annual tax decal as follows:
| Gross Vehicle Weight Rating in Pounds (lbs.) | Annual License Tax Fee |
|---|---|
| 1-10,000 lbs | $70 |
| 10,001-16,000 lbs. | $100 |
| Over 16,000 lbs. | $125 |
All CNG and LPG vehicles must display a current fuel tax decal. Non-profit transit agencies are exempt from the fuel tax.
(Reference Colorado Revised Statutes 39-27-102.5)
Natural Gas Fuel Rate Reduction and Infrastructure Maintenance
Clean Energy Fuels offers services to the natural gas vehicle industry that include compressed natural gas (CNG) fueling station equipment maintenance, competitive fuel pricing for larger fleet customers, and alternative fuel vehicle financing. Clean Energy also operates public CNG fueling stations in Colorado.
Point of Contact
James Orsulak
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone (303) 322-4600
Fax (303) 322-4644
jorsulak@cleanenergyfuels.com
Natural Gas Infrastructure Technical Assistance
Atmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and will assist with vendor selection on a case-by-case basis.
Point of Contact
Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone (817) 303-2903
Fax (817) 303-2929
walter.c.miller@atmosenergy.com
Alternative Fuel Definition
Alternative fuel is defined as compressed natural gas, propane, ethanol, or any mixture of ethanol containing 85% or more ethanol by volume with gasoline or other fuels, electricity, or any other fuels, which may include, but are not limited to, clean diesel and reformulated gasoline, so long as these other fuels make comparable reductions in carbon monoxide emissions and brown cloud pollutants as determined by the air quality control commission. Alternative fuel does not include any fuel product that contains or is treated with methyl tertiary butyl ether (MTBE). (Reference Colorado Revised Statutes 25-7-106.8)
Alternative Fuel Infrastructure Tax Credit
For tax years beginning prior to January 1, 2011, the Colorado Department of Revenue offers an income tax credit for the cost of construction, reconstruction, or acquisition of an alternative fueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles. The credit value is as follows:
| Tax Year | Tax Credit |
|---|---|
| 2009-2011 | 20% |
| 2006-2009 | 35% |
For an alternative fueling facility that will be generally accessible for use by the public, in addition to the person claiming the credit, the percentages specified above will be multiplied by 1.25. If at least 70% of the alternative fuel dispensed annually is derived from a renewable energy source for a period of 10 years, the credit percentages specified above will be multiplied by 1.25. Certification for the percentage of renewable energy must be presented, as requested, to the Department of Revenue. The credit has a maximum value of $400,000 in any consecutive five-year period for each fueling facility. For more information about this credit, see the Colorado Department of Revenue's Alternative Fuel Income Tax Credits Web site.
(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) 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 Hybrids and neighborhood electric vehicles do not qualify for the AFV credit since 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
Alternative Fuel Vehicle (AFV) Registration
Upon registering a motor vehicle with the Colorado Department of Revenue, Division of Motor Vehicles, the vehicle owner must report the types of alternative fuel used to operate the vehicle and whether the vehicle is dual-fueled or dedicated to one alternative fuel. Forms provided by the Department of Revenue for the purpose of registering motor vehicles must include space for the following fuel types: gasoline, diesel, propane, electricity, natural gas, methanol or M85, ethanol or E85, biodiesel, and other. (Reference Colorado Revised Statutes 42-3-113)
Alternative Fuel Vehicle (AFV) Weight Limit Exemption
Gross vehicle weight rating limits for AFVs are 1,000 pounds greater than corresponding conventional vehicles, as long as the AFVs operate using an alternative fuel or both alternative and conventional fuel, when operating on a highway that is not part of the interstate system. (Reference Colorado Revised Statutes 42-4-508)
