Colorado Simplifies $5,000–$20,000 Tax Credits for NGVs
The State of Colorado passed legislation (HB16-1332) that provides important updates to simplify and expand existing tax credits for taxpayers who purchase cars and trucks powered by clean-burning natural gas and other alternative fuels. The bill, which was recently signed into law by Colorado Gov. John Hickenlooper, goes into effect January 1, 2017, and will help accelerate the adoption of NGVs in Colorado.
“Governor Hickenlooper and the Colorado legislature continue to recognize the strong benefits of using clean-burning natural gas in transportation, and HB16-1332 will put more natural gas vehicles on the road,” said Matthew Godlewski, President of NGVAmerica. “This legislation will help continue the transition to cleaner, low-cost, domestic natural gas for fleets and consumers across Colorado.”
The bill distinguishes between the purchase, conversion and lease of an alternative fuel vehicle, and provides $5,000–$20,000 for the purchase or conversion of an NGV, depending on whether it is a light, medium or heavy duty vehicle. The lease of an NGV will provide $2,500–$10,000 depending on the type of vehicle.
In addition, the bill simplifies the income tax credits by eliminating the need to calculate the incremental cost of the vehicle, and it allows buyers to claim the tax credit at the time of purchase for a nominal administrative fee. These commonsense changes allow fleets and consumers to quickly understand and take advantage of the value of the credits.
“Simplifying alternative fuel vehicle credits is an important step to ensure taxpayers can take advantage of the significant cost savings,” said Godlewski. “NGVAmerica commends Colorado lawmakers for their continued strong support of clean transportation and alternative fuels.”