Fenberg’s Bill To Expand Clean Energy & Save Coloradans Money Earns Full Senate Approval
HB23-1272 includes approximately $65 million in annual tax credits and incentives for businesses and consumers for decarbonization investments
DENVER, CO – Senate President Steve Fenberg’s, D-Boulder, bill to implement tax incentives to reduce the costs of adopting clean energy technologies for Colorado residents and businesses passed the Senate today.
HB23-1272 is part of a package of legislation to incentivize the adoption of clean energy technologies and build upon federal initiatives to save Coloradans money, create good-paying jobs, and help the state meet its climate goals.
The bill includes incentives to advance and adopt clean transportation methods, high-efficiency heat pumps, geothermal electricity development, and measures to reduce industrial emissions. Tax incentives in the bill are expected to average around $65 million each year with individual elements ramping up or down over time depending on available technologies and economic conditions.
“Colorado has become a national leader in promoting clean energy technologies, but there’s much more we can do,” said Fenberg. “In order to further our commitment to our climate goals, we must do more to make adopting clean energy technology a feasible and attractive option for Coloradans – no matter their zip code or income level. The tax credits we’re working to pass this year will save Colorado residents and businesses money, help us meet our climate goals, and improve Colorado’s air quality.”
HB23-1272 would:
Extend and expand electric vehicle tax credits and create an additional $2,500 credit for electric vehicles under $35,000.
Continue the innovative truck tax credit for electric and plug-in hybrid electric trucks, with the credit ranging between $5,000 and $12,000 depending on the truck’s weight starting in 2024.
Create an $500 refundable income tax credit for bicycle retailers for the sale of qualifying e-bikes so that retailers can offer immediate price reductions to purchasers.
Design a refundable income tax credit for the installation of heat pump technology in residential and nonresidential buildings. The credits would vary based on the type and use of the heat pump.
Extend incentives for industrial and manufacturing facilities in Colorado to reduce air pollution through various qualifying efficiency, onsite energy generation, carbon capture, electrification, and other eligible measures.
Create the refundable sustainable aviation fuel (SAF) production facility tax credit worth up to $1-3 million annually for the costs of constructing a SAF production facility.
The bill compliments and builds on incentives included in the Federal Inflation Reduction Act and the Infrastructure Investment and Jobs Act and to help residents and businesses maximize their ability to bring federal dollars to Colorado.
HB23-1272 now heads to the House for consideration of Senate amendments. You can follow the bill’s progress HERE.