The U.S. State of Colorado has passed House Bill (HB) 16-1332, delivering substantial ongoing benefits for the State’s natural gas vehicle industry. Signed off by Gov. John Hickenlooper on June 6, the legislation (HB16-1332) provides important updates to simplify and expand existing tax credits for taxpayers who purchase cars and trucks powered by clean-burning natural gas and other alternative fuels. The bill goes into effect January 1, 2017.
According to the bill’s text, HB16-1332 concerns “modifications to the income tax credits for alternative fuel motor vehicles, and, in connection therewith, fixing specified dollar amounts for the credits, allowing the credit to be assigned to a financing entity, requiring vehicle identification number tracking of the motor vehicle for which a credit is claimed, and making an appropriation.”
“Governor Hickenlooper and the Colorado legislature continue to recognize the strong benefits of using clean-burning natural gas in transportation, and HB 16-1332 will put more natural gas vehicles on the road,” said Matthew Godlewski, President of NGVAmerica. “This legislation will help continue the transition to cleaner, low-cost, domestic natural gas for fleets and consumers across Colorado.”
The bill distinguishes between the purchase, conversion and lease of an alternative fuel vehicle. For the period January 1, 2017 to December 31, 2019 it provides $5,000–$20,000 for the purchase or conversion of an NGV, depending on whether it is a light, medium or heavy duty vehicle. The lease of an NGV will provide $2,500–$10,000, again depending on the type of vehicle. A 20% reduction on the above figures applies for 2020 and a 50% reduction on the above figures applies for 2021.
NGVAmerica explains that, in addition, the bill simplifies the income tax credits by eliminating the need to calculate the incremental cost of the vehicle, and it allows buyers to claim the tax credit at the time of purchase for a nominal administrative fee. These commonsense changes allow fleets and consumers to quickly understand and take advantage of the value of the credits.
“Simplifying alternative fuel vehicle credits is an important step to ensure taxpayers can take advantage of the significant cost savings,” said Godlewski. “NGVAmerica commends Colorado lawmakers for their continued strong support of clean transportation and alternative fuels.”
(Sources: Government of Colorado, NGVAmerica)