Changes that take effect for tax years 2024 and later:
House Bill 23-1272 made a number of changes that will take effect for tax years commencing on or after January 1, 2024. Some of the changes, as noted below, apply only to the innovative motor vehicle credit (allowed for qualifying vehicles with GVWR of 8,500 pounds or less), while other changes apply only to the innovative truck credit (for qualifying vehicles with GVWR of more than 8,500 pounds). Many of the changes apply to both the innovative motor vehicle credit and the innovative truck credit.
- Both the innovative motor vehicle credit and the innovative truck credit will be allowed to political subdivisions of the state (cities, counties, school districts, and other local governments) and tax-exempt organizations (such as 501(c)(3) organizations) that purchase or lease a qualifying vehicle.
- Both the innovative motor vehicle credit and the innovative truck credit may be assigned to either the financing entity or the motor vehicle dealer. For prior tax years, a credit could be assigned to the financing entity but not to the motor vehicle dealer.
- A financing entity or motor vehicle dealer that accepts assignment of the credit will have to submit information regarding the assigned credit to the Department on a quarterly basis using the new Approved File Format for Electronic Submissions. For prior tax years, a financing entity that accepts assignment of the credit was required to file information regarding the credit within 30 days of the assignment.
- Innovative truck credits allowed for the purchase or lease of a qualifying truck in any of the four categories will increase relative to the credit allowed for tax year 2023.
- An additional innovative motor vehicle credit of $2,500 will be allowed for the purchase or lease of a qualifying vehicle with an MSRP under $35,000. There will be no similar additional innovative truck credit for purchase or lease of a qualifying truck.
An additional innovative motor vehicle credit of $600 will be allowed for the purchase or lease of a qualifying vehicle if the purchaser or lessee assigns the credit to the financing entity or motor vehicle dealer. There will be no similar additional innovative truck credit for purchase or lease of a qualifying truck.
| Qualifying vehicle type | Credit for purchase or lease | Additional credit for MSRP under $35,000 | Additional credit for credit assignment |
|---|---|---|---|
| Qualifying vehicles with GVWR of 8,500 pounds or less | $5,000 | $2,500 | $600 |
| Light-duty passenger motor vehicles with GVWR greater than 8,500 pounds but not more than 10,000 pounds | $5,000 | $0 | $0 |
| Light duty electric trucks with GVWR greater than 8,500 pounds but not more than 10,000 pounds | $5,000 | $0 | $0 |
| Medium duty electric trucks with GVWR greater than 10,000 pounds but not more than 26,000 pounds | $12,000 | $0 | $0 |
| Heavy duty trucks with GVWR greater than 26,000 pounds | $12,000 | $0 | $0 |