Alternative Fuel Infrastructure Tax Credit

For tax years beginning before January 1, 2011, the Colorado Department of Revenue offers an income tax credit of 20% of the cost of construction, reconstruction, or acquisition of an alternative fueling facility that is directly attributable to the storage, compression, charging, or dispensing of alternative fuels to motor vehicles. For an alternative fueling facility that will be generally accessible for public use in addition to the person claiming the credit, the credit is multiplied by 1.25. If at least 70% of the alternative fuel dispensed annually is derived from a renewable energy source for a period of 10 years, the credit is multiplied by 1.25. Certification for the percentage of renewable energy must be presented to the Department of Revenue upon request. The credit has a maximum value of $400,000 in any consecutive five-year period for each fueling facility. Excess credit may be carried forward for up to five years. For additional information, see the Department of Revenue’s Income 9 FYI publication. (Reference Colorado Revised Statutes 39-22-516)