Colorado Gov. John Hickenlooper has signed into law H.B.14-1326, a piece of legislation that provides tax credits to fleets that deploy heavy-duty vehicles powered by natural gas or propane.
The state already had solid incentives in place for light- and medium-duty natural gas vehicles and propane autogas vehicles, with Hickenlooper having signed into law H.B.1247 last May. H.B.14-1326, however, extends the reach of Colorado's alt-fuel incentives.
‘The current income tax credit for alternative fuel vehicles does not adequately address heavy-duty alternative fuel vehicles, even though the benefits of their emission reductions and energy security are reported to be significant,’ the law reads.
The bill, which was spearheaded by Reps. Dianne Primavera and Ray Scott, covers heavy-duty vehicles that operate on compressed natural gas (CNG), liquefied natural gas (LNG, propane or hydrogen. Dedicated, bi-fuel and dual-fuel configurations of OEM and converted vehicles are all eligible for the credits.
As it now stands, the credit amounts are capped at the following, per vehicle:
- Light-duty passenger vehicle: $6,000
- Light-duty truck: $7,500
- Medium-duty vehicle (14,001 lbs. to 26,000 lbs. GVW): $15,000
- Heavy-duty vehicle (> 26,000 lbs. GVW): $20,000
The tax credits will be available through 2021.