Commercial Programs, Incentives and Grants

Charge Ahead Colorado provides grant funding for community-based Level 2 (L2) and DC fast-charging. The objectives of Charge Ahead Colorado are to improve air quality, reduce transportation emissions, and increase adoption of electric vehicles across Colorado.

Colorado taxpayers are eligible for a state tax credit of $5,000 for the purchase or lease of a new EV on or after July 1, 2023 with a manufacturer’s suggested retail price (MSRP) up to $80,000. Lease agreements must have an initial term of at least two years. Beginning January 1, 2024, Coloradans purchasing an EV with an MSRP up to $35,000 will be eligible for an additional $2,500 tax credit.

Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W. The credit equals the lesser of:

• 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
• The incremental cost of the vehicle

Qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds have a maximum credit of $7,500.

Plug-in electric vehicles must draw significant propulsion from an electric motor with a battery capacity of at least:

• 7 kilowatt hours if the gross vehicle weight rating (GVWR) is under 14,000 pounds
• 15 kilowatt hours if the GVWR is 14,000 pounds or more

Businesses are eligible to receive a Federal Tax Credit for alternative fueling infrastructure including EV charging stations. Tax credits for qualified alternative fueling infrastructure are up to 30% of the cost to purchase and install the infrastructure. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consult with your tax professional to see how these credits apply to your business.

The Diesel Emissions Reduction Act (DERA) Program funds grants and rebates that protect human health and improve air quality by reducing harmful emissions from diesel engines. The program solicits applications for projects that achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.

EPA: Clean School Bus Program

The EPA’s Clean School Bus Program provides $5 billion over the next five years (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. This program is supported with funding from the Bipartisan Infrastructure Law,

The Airport Zero Emissions Vehicle (ZEV) and Infrastructure Pilot Program improves airport air quality and facilitates use of zero emissions technologies at airports. Created in 2012, the program allows airport sponsors to use Airport Improvement Program (AIP) funds to purchase ZEVs and to construct or modify infrastructure needed to use ZEVs.

Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements.

FTA provides grants to local public transit systems, including buses, subways, light rail, commuter rail, trolleys and ferries. Since 1964, FTA has partnered with state and local governments to create and enhance public transportation systems, investing more than $13 billion annually to support and expand public transit services. FTA provides annual formula grants to transit agencies nationwide as well as discretionary funding in competitive processes.

The Bipartisan Infrastructure Law, as enacted in the Infrastructure Investment and Jobs Act, was signed into law by President Biden in November 2021 and is the largest federal investment in public transportation in the nation’s history. The legislation reauthorizes surface transportation programs for FY 2022-2026 and provides advance appropriations for certain programs. The Bipartisan Infrastructure Law authorizes up to $108 billion to support federal public transportation programs, including $91 billion in guaranteed funding.