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
As of January 2022, the Regional Air Quality Council (RAQC) has fully allocated its program budget for ALT Fuels Colorado. Future funding opportunities will be offered & managed by the Colorado Department of Public Health & Environment (CDPHE) Clean Fleet Enterprise. Additional details can be found on their program webpage here.
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 round of funding opportunities will open in the late spring of 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
Clean School Bus Funding Program
EPA will be making significant investments in the health, equity, and resilience of American communities. EPA will offer a total of $5 billion between fiscal years 2022 and 2026 to fund the replacement of existing school buses with low- or zero-emission school buses. Each year, $500 million will be available exclusively for electric school buses and $500 million will be available for electric buses and multiple types of cleaner alternative fuel school buses.
EPA can offer grants and rebates to assist fleets in purchasing new, cleaner school buses and the associated charging and fueling infrastructure. EPA will ensure a broad geographic distribution of awards. This funding opportunity is a public request with no deadline. Learn more about Clean School Bus Program Funding.
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 have launched a new Inclusive Energy Innovation Prize. Phase Two submissions will open in March 2022 and close in March 2023 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.
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.)
Grants for Buses and Bus Facilities
The purpose of the Buses and Bus Facilities Program is to assist in the financing of buses and bus facilities capital projects, including replacing, rehabilitating, purchasing or leasing buses or related equipment, and rehabilitating, purchasing, constructing, or leasing bus-related facilities. Proposals must be submitted electronically through Grants.Gov website by 11:59 PM Eastern Time 05/31/2022.
Low or No Emission Grant Program
The purpose of the Low-No Program is to support the transition of the nation’s transit fleet to the lowest polluting and most energy-efficient transit vehicles. The Low-No Program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses, including acquisition, construction, and leasing of required supporting facilities. Proposals must be submitted electronically through Grants.Gov website by 11:59 PM Eastern Time 05/31/2022.
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