Purchasers and lessee’s are potentially eligible for up to a $6,000 credit on their individual or business Colorado income tax return for purchases/lease agreements of alternative fuel and/or electric vehicles made during the 2013 tax year through tax year 2021, thanks to House Bill 13-1247, signed into law by the Colorado Legislature on May 15, 2013. The bill extends the availability of credits for certain “innovative” vehicles and simplifies the calculation of these credits.
It is important to note, however, that used vehicles are only eligible if the Colorado credit has not been previously claimed on that vehicle. The amount of the credit is dependent upon the vehicle specifications and purchase price, adjusted for any eligible credits, grants, and/or rebates. Also, for taxpayers that have already purchased a vehicle relying on information from the prior law, if that law provides more favorable treatment, it may still be utilized.
For those of you considering the purchase of a fuel efficient vehicle, for business use or pleasure, we would be happy to assist you with determining the potential tax savings available as a result of the newly modified credit. Please call Jordan Empey, Tax Manager, at (719) 630-1186 or email him at email@example.com.