AFVs titled and registered in Colorado are eligible for a tax credit. For the purpose of the credit, AFVs include dedicated or bi-fuel natural gas and propane vehicles. The tax credit is equal to the amounts listed at the state's site.

Eligible purchased vehicles must be new, and eligible leased vehicles must have a lease with a term of not less than two years. A purchaser may assign the tax credit generated through the purchase, lease, or conversion to any of the above categories of vehicle to the financing entity, allowing the purchaser to realize the value of the tax credit at the time of purchase, lease, or conversion. The financing entity may collect an administrative fee of no more than $150.

For more information, see the Colorado Department of Revenue's Income 69(PDF) FYI publication.

(Reference House Bill 19-1159, 2019, and Colorado Revised Statutes 39-22-516.7 and 39-22-516.8)