Incentives and Funding Opportunities

Many state and federal grant programs exist to increase alternative transportation adoption.

The Drive Clean Colorado team of experts is here to provide individualized coaching and support for vehicle and infrastructure incentives and grant for fleets – contact us now for more information.

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Vehicles

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Transit

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School Buses

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Other Opportunities

Vehicles

Commercial Clean Vehicle Tax Credit

  • Federal Tax Credit
  • Public & Private Fleets for Businesses and Tax-Exempt Organizations
  • Vehicle Qualifications include New Battery Electric, Plug-In Hybrid and Fuel Cell Electric
  • Light, Medium, and Heavy Duty On-Road Vehicles
  • The maximum credit is $7,500 for vehicles with Gross Vehicle Weight Ratings under 14,000 pounds and $40,000 for all other vehicles

Available year-round (form is being finalized now)

Innovative Motor Vehicle & Truck Credits for Electric & Plug-in Hybrid Electric Vehicles

  • State of Colorado Tax Credit
  • Private Fleets with a tax liability
  • Vehicle Qualifications include Battery Electric, Plug-In Hybrid and Fuel Cell Electric
  • Light, medium, and heavy duty on-road vehicles
  • Value of tax credit varies by vehicle size

Available year-round (realized on tax return)

Clean Fleet Vehicle & Technology Grant

  • Colorado Clean Fleet Enterprise (Funding from SB260)
  • All Colorado Fleets new or conversion Battery Electric, Fuel Cell Electric, or Recovered Methane
  • Class 2b – Class 8 On-Road Vehicles
  • Vehicle Scrappage Optional
  • Amount of Grant varies by fuel type and vehicle size
  • Program Guide Available

Applications are anticipated to reopen April 2024 through May 2024

Colorado Low Emission Vehicle Sales Tax Exemption

  • Exemption of State Sales and Use Tax
  • Available to all Colorado fleets
  • Vehicles over 10,000 pounds GVWR
  • Fuel Types: Battery Electric, Fuel Cell Electric, CNG and LPG
  • New Vehicles and Conversions
  • EPA certified parts are sales and use tax exempt for vehicle conversions over 26,000 pounds GVWR

Available year-round

Colorado Clean Diesel Program

  • Funding from Diesel Emissions Reduction Act (DERA)
  • Available to Colorado Fleets with Diesel Vehicles and/or Equipment
  • See Program Guide for List of Eligible Vehicles and Construction Equipment
  • Fuel Types: Battery Electric, Plug-In Hybrid and Hybrid-Electric
  • Requires scrap vehicle
  • Amount of Grant varies by technology type

Open until funds are expended

Diesel Emissions Reduction Act (DERA)

  • Funding from U.S. EPA
  • Regional, State, Local, Tribal or Port Agency with transportation jurisdiction, Public and Private Fleets, and Nonprofit Organizations are eligible to apply
  • Class 5 8 Vehicles, School Buses, Locomotive Engines, Marine Engines, and Non-road Vehicles and Equipment
  • Diesel Emission reduction technologies designated on EPA website
  • Funding for Region 8 which includes Colorado will total $3,000,000

Closed

Enterprise Zone Commercial Vehicle Investment Tax Credit

  • State of Colorado Tax Credit
  • Private fleets with a tax liability
  • Trucks over 54,000 pounds GVWR
  • All fuel types are eligible
  • Value of the tax credit is 1.5% of the cost

Available year-round

Clean Heavy-Duty Vehicle Program

  • Funding from U.S. EPA
  • Grants and/or Rebates
  • Class 6 – 7 Vehicles 
  • Fuel Types: Battery Electric and Fuel Cell Electric 
  • Includes associated vehicle infrastructure and workforce development 

Notice of Funding Opportunity expected in early 2024

Inflation Reduction Act

  • Clean Energy Tax Credits
  • Tax-exempt and governmental entities
  • Receive elective payments for 12 clean energy tax credits, as well as tax credits for electric vehicles and charging stations

Available year-round

Colorado State EV Tax Credit

  • State of Colorado Tax Credit
  • $5,000 for new EV purchases or leases with MSRP up to $80,000
  • Beginning January 1, 2024, EVs with an MSRP up to $35,000 will be eligible for an additional tax credit of $2,500.

Available year-round

Transit

Clean Transit Enterprise Grant

  • Colorado Clean Transit Enterprise (Funding from SB260)
  • Public Fleets
  • Supports public transit electrification planning efforts, facility upgrades, fleet motor vehicle replacement, as well as construction and development of electric motor vehicle charging and fueling infrastructure.
  • Fuel Types: Battery Electric, Fuel Cell Electric

Expected to open 2023

Low or No Emission (LO-NO) Program and Bus Facilities Program

  • Funding from the Federal Transit Administration
  • Total of $1.7 billion
  • Supports state and local efforts to transition to zero and low emission transit buses and infrastructure and workforce development.

Closed but will reopen in 2024

Infrastructure

Federal Alternative Fuel and Infrastructure Tax Credits

  • Tax credits for fueling infrastructure for E85, biodiesel, CNG, Propane, and Electricity, including residential.
  • Eligible tax credit of 30% or 6% in the case of property subject to depriciation, not to exceed $100,000
  • Residential fueling equipment purchased between January 1, 2023 and December 31, 2032 may receive a tax credit of up to $1,000

Available year-round (realized on tax return)

Charge Ahead Colorado

  • State of Colorado grant for chargers
  • Community-based Level 2 Charging and DC Fast Charging
  • Funding amounts will vary based on power level

Open through February 16, 2024

DCFC Plazas Program

  • Colorado Energy Office and CDOT Grant
  • DC Fast Charging, output of at least 150 kW
  • Award amounts vary by location (Rural, Front Range Urban, or Seven County Denver Metro Area) and number of ports 
  • Bonus incentive of $25,000 per site for battery integrated storage or $45,000 for standalone storage

Closed

Fleet Zero-Emission Infrastructure Program

  • Colorado Energy Office grant for charging infrastructure to support light-, medium-, and heavy-duty fleets
  • Both public and depot charging will qualify
  • Rolling Applications for Qualifying Entities requesting less than $50,000
  • Maxiumum funding is $500,000 specifics determined by power level and the nummber of chargers and ports installed

Applications to reopen 2024

Community Access Enterprise Funding

  • Colorado Community Access Enterprise (Funding from SB260)
  • Supports the widespread adoption of electric motor vehicles, equitably invests in transportation infrastructure, and incentivizes the acquisition and use of electric motor vehicles and electric alternatives to motor vehicles.

Charging and Fueling Infrastructure Discretionary Grant Program

  • Grant program for EV charging and alternative fuel infrastructure
  • Two funding categories: community charging and fueling grants (Community Program), alternative fuel corridor grants (Corridor Program)
  • $2.5 billion over five years
  • Priorities include rural areas, low-income neighborhoods, and multifamily units

Closed but will reopen in 2024

Utility Provider Programs

Available year-round

Inflation Reduction Act

  • Clean Energy Tax Credits
  • Tax-exempt and governmental entities
  • Receive elective payments for 12 clean energy tax credits, as well as tax credits for electric vehicles and charging stations

Available year-round

School Buses

Clean School Bus Funding

  • Funding from the EPA
  • Total of $5 billion between fiscal years 2022 and 2026
  • Funds the replacement of existing school buses with low- or zero-emission school buses (electric or propane)
  • Also may include funding to purchase charging and fueling infrastructure
  • DCC is assisting with a third-party application – reach out to [email protected] if you are interested in joining! 

Now closed, will reopen in 2024

Colorado Electric School Bus Grant Program

  • Funding from the Colorado Department of Public Health and Environment
  • Funding available for New Battery Electric Vehicles, Charging Infrastructure, Scrappage, Project-start up, High Voltage Training, and Bus Conversions
  • Amounts vary

Anticipated to reopen April 2024 through May 2024

Diesel Emissions Reduction Act (DERA)

  • Funding from U.S. EPA
  • School districts, nonprofits
  • Class 5 – 8
  • Diesel Emission reduction technologies designated on EPA website
  • Requires scrap vehicle

Closed

Clean School Bus Rebate Program

  • Funding from the US Environmental Protection Agency (EPA)
  • Rebate applications can request funds for replacing up to 25 buses
  • Funds electric school buses and associated charging infrastructure
  • $500 million in total funding, specifics determined by vehicle class and school district prioritization status

Now open through January 31, 2024

Other

Local Governments Electric Vehicle Readiness Planning Grants

  • Funding from the Colorado Energy Office
  • Funding for local, county, and Tribal governments and their regional partners to develop EV readiness plans
  • Prepare strategies and encourage community adoption of EVs
  • Maximum funding is $40,000

Closed

Ride and Drive Electric Funding Opportunity

  • Under the Joint Office of Energy and Transportation through the Bipartisan Infrastructure Law (BIL)
  • $50 million
  • Supports the rapid transition to electrified transportation and catalyzes private sector investments in clean transportation

Closed, will reopen 2024

Clean Energy to Communities Program: In-Depth Partnerships

  • For communities needing assistance with a time-sensitive decision regarding clean energy goals.
  • Short-term assistance of 1-2 months.
  • Funding from the U.S. Department of Energy

Closed, will reopen in 2024

eCargo Bike Commercial Delivery Pilot Program

  • Under the Community Access Enterprise (CAE) in partnership with the Colorado Energy Office (CEO)
  • Provides funding for the development and implementation of eBike deployment projects in communities across Colorado

Closed. Future grant cycles TBD

Vehicle Technologies Office (VTO) Program Wide Funding Opportunity

  • Through the Vehicle Technologies Office (VTO) under the U.S. Department of Energy
  • Aid in the deployment of advanced technologies for both on- and off-road vehicle charging and infrastructure, innovative public transit solutions, and training

Closed, will open in 2024

Clean Energy to Communities Program – Peer Learning Cohorts

  • Financial and Technical Assistance for clean energy planning to benefit disadvantaged communities focused on planning & outreach.

Closed

  • For local, county, Tribal governments, CBOs, nonprofits
  • Up to $75,000 under the Community Access Enterprise (CAE) in partnership with the Colorado Energy Office (CEO)
  • Grant funding to support community-led mobility programs that meet unique community needs and include an electric mobility component(s). Electric mobility refers to any type of transportation that relies partially or completely on electricity to power it.

Funding Phase 1: Technical Readiness Planning Grants now open through October 27, 2023

Community Access to Electric Bicycles Grant Program

  • For non-profit organizations, local governments, tribal governments, and other community-based organizations
  • Colorado Energy Office
  • The purpose of this grant program is to create e-bike programs that give e-bikes to low- and moderate-income Coloradans.

Coming Fall 2023

Active Transportation Infrastructure Investment Program (ATIIP)

  • Grant provided by U.S. DOT
  • Eligible applicants include: a local or regional governmental organization, including a metropolitan planning organization or regional planning organization or council; a multicounty special district; a State; a multistate group of governments; or an Indian tribe
  • Two Types of Grants: Planning and Design Grants and Construction Grants
  • Both types of grants can go towards planning, designing, and constructing active transportation networks and active transportation spines.

NOFO Coming Fall 2023

  • Eligible applicants for the Thriving Communities Program Call for Letters of Interest include the following: Local, state, or Tribal governments including pueblos or villages; United States territories; Metropolitan planning organizations; Transit agencies; and Other political subdivisions of state or local governments
  • For Those Interested in Receiving Technical Assistance through the Thriving Communities Program
  • Community LOIs due Novemeber 15

Open Now

Local Government Community E-Bike Rebate Grant Program

  • The Local Government Community E-Bike Rebate Grant Program will provide funding to local and Tribal governments for the development and implementation of local e-bike rebate programs in their communities.
  • The purpose of this program is to: Increase access to e-bikes for income-qualified individuals, while maximizing air quality benefits and greenhouse gas (GHG) emissions reductions.

Closed, expected to reopen in February

Clean Energy to Communities Program: Expert Match

  • Opportunity for communities needing assistance with a time-sensitive decision regarding clean energy goals.
  • Free, short-term (1-2 months) technical assistance to address near-term clean energy challenges and questions
  • Topics covered are: clean power, mobility, buildings, grid transmission and distribution infratructure, and other topics related to clean energy.

Rolling Deadline