Colorado Code
Part 5 - Special Rules
§ 39-22-516.7. Tax Credit for Innovative Motor Vehicles - Definitions - Repeal

(II) Notwithstanding section 39-21-108 (3), if a purchaser assigns the tax credit to a financing entity pursuant to this paragraph (e), the financing entity receives the full amount of the tax credit that the purchaser is allowed in this section. Any unpaid balance or unpaid debt of the purchaser may not be credited from the amount of the tax credit allowed in this section.
(III) To complete the tax credit assignment, the purchaser and the financing entity must enter into an election statement that must:
(A) Identify the vehicle identification number of the category 1 or category 1 A vehicle for which a credit is allowed in this section; and
(B) Affirm that the requirements specified in subparagraph (I) of this paragraph (e) were met.
(IV) The financing entity may authorize an agent or a designee to sign the election statement on its behalf.
(V) The financing entity shall electronically submit a report containing the information contained in the election statement described in subparagraph (III) of this paragraph (e) to the department of revenue within thirty days of the purchase or lease of a category 1 or category 1 A vehicle in such a form and in such a manner as required by the department.
(VI) The financing entity shall also file the election statement described in subparagraph (III) of this paragraph (e) with the original tax return for the taxable year in which the category 1 or category 1 A vehicle is purchased or leased.
(VII) The department of revenue, in consultation with the Colorado energy office created in section 24-38.5-101, C.R.S., shall develop a model report and election statement no later than December 1, 2016.

(A) Titled and registered in the state; and
(B) Required to be licensed or subject to licensing for operation upon the highways of the state.

(c) With respect to the tax years commencing on or after January 1, 2014, but prior to January 1, 2022, there is allowed to any person a credit against the tax imposed by this article, not to exceed the amount specified in subsection (4) of this section, for the conversion of a motor vehicle defined as category 1 A.
(d) Repealed.
(e) (I) A purchaser may assign the tax credit allowed in this section for the purchase or lease of a category 1 or category 1 A vehicle completed on or after January 1, 2017, to a financing entity as follows:
(A) The assignment to the financing entity must be completed at the time of purchase or lease by entering into an election statement as set forth in subparagraph (III) of this paragraph (e);
(B) The purchaser must title and register the vehicle in the state as required by state law;
(C) The purchaser must assign the tax credit to the financing entity and forfeit the right to claim the tax credit on the purchaser's tax return in exchange for good and valuable consideration; and

(II) With respect to the tax years commencing on or after January 1, 2017, but prior to January 1, 2020, five thousand dollars for a purchase or two thousand five hundred dollars for a lease;
(III) With respect to the tax years commencing on or after January 1, 2020, but prior to January 1, 2021, four thousand dollars for a purchase or two thousand dollars for a lease;
(IV) With respect to the tax years commencing on or after January 1, 2021, but prior to January 1, 2023, two thousand five hundred dollars for a purchase or one thousand five hundred dollars for a lease;
(V) With respect to the tax years commencing on or after January 1, 2023, but prior to January 1, 2026, two thousand dollars for a purchase or one thousand five hundred dollars for a lease.

(II) With respect to the tax years commencing on or after January 1, 2017, but prior to January 1, 2020, five thousand dollars;
(III) With respect to the tax years commencing on or after January 1, 2020, but prior to January 1, 2021, four thousand dollars;
(IV) With respect to the tax years commencing on or after January 1, 2021, but prior to January 1, 2022, two thousand five hundred dollars.

(II) With respect to the tax years commencing on or after January 1, 2014, but prior to January 1, 2017, fifteen percent of the difference between the actual cost incurred by such taxpayer during the tax year in purchasing or leasing a category 2 motor vehicle and the cost of the same motor vehicle that uses a traditional fuel or, if the same vehicle is not available, then the cost of the most similar vehicle, taking into account the model, make, engine size, and options, that uses a traditional fuel.
(III) to (V) (Deleted by amendment, L. 2016.)
(VI) This paragraph (c) is repealed, effective December 31, 2021.

(II) With respect to the tax years commencing on or after January 1, 2014, but prior to January 1, 2017, twenty-five percent of the actual cost incurred by a taxpayer during the tax year for the conversion of a motor vehicle defined as category 3.
(III) to (V) (Deleted by amendment, L. 2016.)
(VI) This paragraph (d) is repealed, effective December 31, 2021.

(9.5) With respect to the tax years commencing on or after January 1, 2019, a transportation network company, as defined in section 40-10.1-602 (3), or a third-party vehicle supplier that contracts with a transportation network company to provide category 1 motor vehicles for short-term rental to transportation network company drivers, as defined in section 40-10.1-602 (4), that enters into long-term leases with a duration of not less than two years for category 1 motor vehicles shall be treated as having purchased each category 1 motor vehicle for purposes of the credit calculation specified in subsection (4)(a) of this section if the vehicles are offered to transportation network company drivers, as defined in section 40-10.1-602 (4), for short-term rental periods of not more than sixty days.

Source: L. 2013: Entire section added, (HB 13-1247), ch. 226, p. 1067, § 2, effective May 15. L. 2014: (1)(h), (1)(i), (1)(j), (1)(n), (2)(a), (2)(d), (4)(e), (4)(f), (4)(g), and (6) amended and (2)(a.5) added, (HB 14-1326), ch. 357, p. 1674, § 3, effective June 6; (1)(a)(I)(A) amended, (HB 14-1326), ch. 357, p. 1677, § 4, effective December 31, 2019. L. 2016: (1)(k.5), (1)(r.3), (2)(a.3), (2)(e), (9), and (10) added and (1)(r), (2)(a), (2)(c), (3), (4)(a), (4)(b), (4)(c), (4)(d), and (8) amended, (HB 16-1332), ch. 237, p. 955, § 1, effective June 6. L. 2019: (1)(k)(III), (2)(a), (4)(a)(IV), and (10) amended and (4)(a)(V) and (9.5) added, (HB 19-1159), ch. 386, p. 3444, § 2, effective August 2. L. 2020: (6) amended, (HB 20-1402), ch. 216, p. 1058, § 67, effective June 30; (1)(b) amended, (HB 20-1167), ch. 56, p. 192, § 3, effective September 14.

Cross references: (1) For the legislative declaration in the 2013 act adding this section, see section 1 of chapter 226, Session Laws of Colorado 2013.
(2) For the legislative declaration in HB 14-1326, see section 1 of chapter 357, Session Laws of Colorado 2014.
(3) For the legislative declaration in HB 19-1159, see section 1 of chapter 386, Session Laws of Colorado 2019.