COtax_creditflat_per_unitrefundable

Innovative Motor Vehicle Credit

CO-IMV · Colorado

Summary

Refundable Colorado income tax credit for the purchase or lease of qualifying new electric, plug-in hybrid electric, or hydrogen fuel cell light-duty motor vehicles titled and registered in Colorado. 2026 amount: $750 base credit, plus $2,500 add-on if MSRP under $35,000 — maximum $3,250 per vehicle. Credit was $5,000 in 2024 and $3,500 in 2025, dropping to $750 base in 2026. Vehicle requirements: 4 wheels, ≥55 mph max speed, GVWR ≤8,500 lbs, propelled to a significant extent by electric motor, battery rechargeable from external source with ≥4 kWh capacity, new at purchase. Hydrogen fuel cell vehicles qualify with all the above except battery requirements. Claimable by individuals, estates, trusts, C corporations, partners/shareholders of pass-throughs, and (for tax years 2024+) tax-exempt entities and local governments. Credit may be assigned to financing entity or motor-vehicle dealer at point of sale.

Benefit

Percentage
Flat
$750 per vehicle
Duration
Max annual
(taxpayer)
Max total
(taxpayer)
Carryforward

Program metadata

Distribution
taxpayer_earned
Claimant subject
business
Refund/transfer election
refundable_only
Program family
Effective
Sunset
Application deadline
Transfer discount

Tiers (4)

#NameBenefitMin jobsMin investmentMin wageMax annual
12024 — base$5,000 per vehicle
22025 — base$3,500 per vehicle
32026 — base$750 per vehicle
42026 — MSRP <$35k add-on$2,500 per vehicle

Hard requirements (1)

  • industry_keywordAny taxpayer that purchases or leases a qualifying motor vehicle. Vehicle must meet 4-wheel / GVWR ≤8500 / ≥55mph / ≥4 kWh battery / new / CO-registered tests. Hydrogen fuel cell variant excludes battery test.

Preference / tiering rules (0)

None.

NAICS industries (0)

Any.

Geo zones (1)

  • statewide · Colorado Statewide (vehicle CO-titled and registered)

Tags (5)

  • max_gvwr_lbs: 8500
  • min_battery_kwh: 4
  • max_msrp_for_addon_2026: 35000
  • point_of_sale_assignment: allowed
  • reported_on_form: DR_0617

Source

https://tax.colorado.gov/income-tax-topics-innovative-motor-vehicle-credit
§ 39-22-516.7, C.R.S.; HB23-1272 (rate schedule)
Last verified: 2026-04-30
CO-statewide. Heavy individual-claimant overlap — the credit is more often claimed on individual returns, but C-corp / business fleet purchases ARE eligible. Promoted from Tier 2 deferred list because of business-fleet applicability. Step-down rate schedule: 2024=$5000, 2025=$3500, 2026=$750 base + $2500 if MSRP<$35k. Tier-table below captures the rate schedule.