(June 6) – A bill by Majority Leader Crisanta Duran that creates a streamlined $5,000 tax credit for purchasing an alternative fuel passenger car was signed into law today by Gov. John Hickenlooper. The law also creates a simplified $7,000 credit for light-duty trucks, a $10,000 credit for medium-duty trucks and a $20,000 credit for heavy-duty trucks.
Previous deductions were difficult to calculate and were only offered on tax day. Under HB16-1332, buyers can enter a contract with their participating lender to receive the credit the day they buy the vehicle.
“We passed this bill to make Colorado one of the best places to buy alternative fuel vehicles,” said Majority Leader Duran, D-Denver. “By incentivizing energy efficient vehicles, we are investing in renewable energy and protecting the clean air and natural resources that make Colorado such a beautiful place to live.”
After the passage of this bill, a Washington Post article recently touted Colorado as the best place in the country to buy a new electric car. With the new tax credits added to existing federal subsidies, Colorado residents can earn as much as $12,500 in total tax credits.
The bill passed both chambers with only one vote opposed.