HB 14-1326: Tax Incentives for Alternative Fuel Trucks

• Creates new income tax credits for purchases and conversions of medium and heavy-duty alternative fuel trucks, including compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and electric vehicles, with credit percentages declining from 18% to 3.75% between 2014 and 2022.

• Establishes tax credits for clean fuel refrigerated trailers, idling reduction technologies, aerodynamic technologies, and hydraulic hybrid truck conversions, with varying percentages and annual caps ranging from $6,000 to $20,000 depending on vehicle category.

• Reduces taxable value of qualifying alternative fuel trucks from full actual purchase price to 75% of actual purchase price for property tax purposes through December 31, 2026.

• Exempts sales and use of alternative fuel trucks meeting specified emissions standards from sales and use taxation, with expanded eligibility for vehicles with gross vehicle weight ratings over 10,000 pounds.

• Requires Colorado Energy Office to conduct life-cycle emissions analysis by December 31, 2018 to determine if alternative fuel trucks generate greater emissions than comparable traditional fuel vehicles, with authority to restrict credits if emissions are materially greater.