HB19-1159 Summary

• Extends income tax credits for purchase or lease of alternative fuel motor vehicles through January 1, 2026 (previously expiring January 1, 2022).

• Clarifies that hydrogen fuel cell vehicles qualify for electric vehicle tax credits by defining them as vehicles powered by cells converting chemical energy directly into electricity by combining oxygen with hydrogen fuel.

• Allows transportation network companies and third-party vehicle suppliers to claim purchase-level credits for category 1 vehicles when entering long-term leases (minimum 2 years) for short-term rental to rideshare drivers (maximum 60 days per rental).

• Reduces credit amounts for tax years 2023-2025: category 1 vehicles decrease from $2,500/$1,500 (purchase/lease) to $2,000/$1,500; category 7 trucks reduced across all duty classes with purchase credits ranging from $2,000-$8,000 and lease credits from $1,500-$5,000.

• Extends section repeal date from December 31, 2026 to December 31, 2030 for both innovative motor vehicle and innovative truck tax credit provisions.