HB 13-1247: Innovative Motor Vehicle Income Tax Credit

• Creates new tax credit section 39-22-516.7 for Colorado taxpayers purchasing, leasing, or converting innovative motor vehicles including electric vehicles, plug-in hybrids, diesel-electric hybrids, natural gas vehicles, and idling reduction technologies, effective January 1, 2013 through December 31, 2021.

• Establishes five vehicle categories with maximum credits of $6,000 each (Category 1A conversions receive $7,500 for tax years 2013-2013 only), with credit amounts calculated based on actual cost incurred, battery capacity, or percentage of cost difference compared to traditional fuel vehicles.

• Implements a phased reduction schedule for all credit percentages starting January 1, 2019, decreasing to 75% of the calculation for 2019-2020, 50% for 2020-2021, and 25% for 2021-2022.

• Restricts credits to one per motor vehicle across all innovative vehicle credit sections; allows leases to be claimed by lessees rather than lessors; provides excess credits as refunds rather than carry-forwards.

• Repeals prior tax credit statutes effective January 1, 2014 and consolidates vehicle category definitions to simplify administration and increase taxpayer understanding.