Alternative Fuel Vehicle Rebate

June 08, 2004


Colorado's Alternative Fuels Rebate applies to motor vehicles using alternative fuels owned by an entity of Colorado that is exempt from federal income taxation. This includes the state, any county, municipality, city and county, district, or other political subdivision of the state of Colorado and any institution, department, agency, or authority; or a person, organization, or other non-governmental entity. Rebates are available for each motor vehicle registered in the state of Colorado that is used in connection with the business or official activities, and uses or is converted to use an alternative fuel or has its power source replaced with a power source that uses an alternative fuel. Application for a rebate must be filed within twelve months after the cost is incurred. Rebates range from 25 to 85%. No fleet may receive more than $350,000 in any state fiscal year. Leased vehicles are eligible and either the owner of the vehicle or the lessee may claim rebates. Alternative Fuel is defined as compressed natural gas, propane, ethanol, or any mixture of ethanol containing eighty-five percent or more ethanol by volume with gasoline or other fuels, electricity, or any other fuels, which fuels 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 Rebates are eligible to the following vehicle types: LEV: Any EPA certified Low-Emitting Vehicle. These vehicles receive rebates of 25 to 50%, depending on when prior to July 1, 2011, the costs were incurred. ULEV or ILEV: Any EPA certified ultra-low-emitting or inherently low-emitting vehicle. These vehicles receive rebates of 25 to 75%, depending on when prior to July 1, 2011, the costs were incurred. ZEV: Any EPA certified zero-emitting vehicle. These vehicles receive rebates of 50 to 85%, depending on when prior to July 1, 2011, the costs were incurred.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Colorado
Incentive Type: Rebate Program
Web Site:
Administrator: Colorado Department of Revenue
Start Date: 7/1/98
Eligible Renewable/Other Technologies:
  • Renewable Fuel Vehicles
Incentive Amount: 25 - 85%
Maximum Incentive: 85%


Name: C.R.S. 39-33-102 through 105
Effective Date: 7/1/98
Expiration Date: 6/30/11


Name: Customer Service - Dept. of Revenue
Organization: Colorado Department of Revenue
Address: 1375 Sherman St.
Denver CO 80261
Phone: (303) 238-7378

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.