Many state and federal grant programs exist to increase alternative transportation adoption.
The Drive Clean Colorado team is here to provide coaching and support for grants – contact us for more information.
Colorado Tax Credits and Grants
ALT Fuels Colorado Vehicle Grant
The next ALT Fuels Colorado grant funding cycle opens on October 1, 2021. This program uses VW Settlement funding to incentivize the purchase of fully electric or renewable natural gas (RNG) powered Class 8 Local Freight Trucks (Heavy-Duty), Class 4-7 Local Freight Trucks (Medium-Duty), Class 4-8 School and Shuttle Buses, railroad freight switchers, airport ground support equipment, heavy forklifts and port cargo handling equipment.
Alternative Fuel Vehicles Tax Credits
Information on tax credits for all alternative fuel types: Tax credits are available in Colorado for the purchase, lease and conversion of light, medium and heavy duty alternative fueled vehicles (electric/EV, plug-in hybrid or PHEV, compressed natural or CNG, liquefied natural gas or LNG, liquefied petroleum gas or LPG, and hydrogen.) These credits were simplified effective Jan. 1, 2017. No credit is allowed for the purchase or lease of a used vehicle made on or after Jan. 1, 2017. Information on credits available for motor vehicles that operate on CNG, LNG, LPG or hydrogen, and for information about the innovative truck credit for tax years commencing prior to Jan. 1, 2017 please see Colorado Department of Revenue document FYI Income 68.
Charge Ahead Colorado Charging Station Grants
Charge Ahead Colorado typically has three application rounds per year in January, May and October. The next funding round is January 24th through February 7th, 2022. Public and private entities interested in installing a level II or DC fast charging station are encouraged to apply. If you need help with your application, contact us for more information – we offer free coaching services for this funding opportunity.
Electric Vehicle Tax Credits
Electric Vehicle Tax Credits are available in Colorado for the purchase or lease of electric vehicles and plug-in hybrid electric vehicles. Examples of electric vehicles include: Chevy Bolt, Tesla Model 3, Kia Niro EV, Nissan LEAF, Hyundai Kona EV, Audi e-tron, Rivian R1T, Porsche Taycan, and Jaguar I-Pace. Examples of plug-in hybrid electric vehicles include: Mitsubishi Outlander PHEV, Prius Prime, Volvo XC60 PHEV, BMW 330e, Chrysler Pacifica PHEV, Ford Fusion Energi, Honda Clarity PHEV, and Subaru Crosstrek PHEV. The current Colorado state tax credit is $2,500 and can be rolled over from one year to the next. (More information on the Drive Electric Colorado website.) You can find out the details from the Colorado Department of Revenue document FYI Income 69.
DOLA Renewable and Clean Energy Initiative Grant
The Colorado Department of Local Affairs (DOLA) was allocated $5 million for their Renewable and Clean Energy Initiative, which supports infrastructure implementation projects in the renewable and clean energy field. There is no cap on the request amount, but a 25% match is required except in cases of extreme financial hardship. Applications are currently open and will remain so until the funding is fully allocated. Contact us if you need help with your application – we offer free coaching services for this funding opportunity.
Some utilities or municipalities also offer their own EV, charging, or EVSE incentives and funding. View a list from the Alternative Fuels Data Center here. In addition, Xcel Energy provides EV solutions for businesses, fleets, communities and more with funding for high emission and income-qualified communities.
Federal Tax Credits and Grants
Federal Alternative Fuel and Infrastructure Tax Credits
Several alternative fuel federal tax credits have been extended including tax credits for biodiesel, CNG and propane, and for fueling infrastructure for E85, biodiesel, CNG, propane and electricity, including residential. Be sure to take a look at the Alternative Fuels Data Center to see what’s changed and how you can take advantage of these updated tax credits.
Federal Electric Vehicles Income Tax Credit
All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. Click here for more information and to find a database of cars and their associated credits. (More information can also be found on the Drive Electric Colorado website.)
DOE Inclusive Energy Innovation Prize
The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy and the Office of Economic Impact and Diversity intend to launch a new Inclusive Energy Innovation Prize. The prize is scheduled to open in September, 2021 and will provide cash prizes of up to $250,000 each ($2.5 million total) to groups and organizations to support entrepreneurship and innovation in communities historically underrepresented and underserved in the energy sector. If you want help applying, contact us for free coaching.
2021 American Rescue Plan (ARP) Electric School Bus Rebates
Closing Date: November 5 2021 at 4:00 PM EST
The 2021 American Rescue Plan (ARP) Electric School Bus Rebates is now open. This grant provided by the United States Environmental Protection Agency (EPA) offers $7 million to eligible school districts and private fleet owners for the replacement of old diesel school buses with new electric school buses. Selected applicants that scrap and replace their old diesel buses with new electric buses will receive a rebate of $300,000 per bus.
This program uses funds from the American Rescue Plan Act of 2021 appropriated to the EPA for “activities that identify and address disproportionate environmental or public health harms and risks in minority populations or low-income populations” under several programs, including the Diesel Emissions Reduction Act (DERA).
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