Be it enacted by the General Assembly of the State of Colorado:

SECTION 1. In Colorado Revised Statutes, 39-22-516.7, repeal as it will become effective December 31, 2019, (1)(a)(I)(A) as follows:

39-22-516.7. Tax credit for innovative motor vehicles - definitions - repeal. (1) (a) (I) (A) [ Editor's note: This version of subsection (1)(a)(I)(A) is effective December 31, 2019. ] "Actual cost incurred" means the actual cost paid by the purchaser for a used motor vehicle or conversion minus any credits, grants, or rebates, including federal credits, grants, or rebates for which the purchaser is eligible, but excluding the credit specified in this section.

SECTION 2. In Colorado Revised Statutes, 39-22-516.7, amend (2)(a), (2)(c), (4)(a)(II), (4)(b)(II), and (10); and repeal (4)(a)(III), (4)(a)(IV), (4)(b)(III), and (4)(b)(IV) as follows:

39-22-516.7. Tax credit for innovative motor vehicles - definitions - repeal. (2) (a) With respect to the tax years commencing on or after January 1, 2013, but prior to January 1, 2022 JANUARY 1, 2018, 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 purchase or lease of a motor vehicle defined as category 1.

(c) With respect to the tax years commencing on or after January 1, 2014, but prior to January 1, 2022 JANUARY 1, 2018, 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.

(4) The amount of the credit allowed pursuant to this section is calculated as follows:

(a) Category 1. (II) With respect to the tax years commencing on or after January 1, 2017, but prior to January 1, 2020 JANUARY 1, 2018, 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, 2022, two thousand five hundred dollars for a purchase or one thousand five hundred dollars for a lease.

(b) Category 1 A. (II) With respect to the tax years commencing on or after January 1, 2017, but prior to January 1, 2020 JANUARY 1, 2018, 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.

(10) This section is repealed, effective December 31, 2026 DECEMBER 31, 2022.

SECTION 3. In Colorado Revised Statutes, 39-22-516.8, amend (2.3), (2.5), (3.5), (4.3), (4.5), (5.5), (6), (7), (8.3), (8.5), (9.5), (10), (11), (11.6), and (18); and repeal (14) as follows:

39-22-516.8. Tax credit for innovative trucks - definitions - repeal. (2.3) Category 4 purchase. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (2.3) for each purchase of a category 4 truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$5,000	$4,000	$2,500
Light duty truck	$7,000	$5,500	$3,500
Medium duty truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(2.5) Category 4 lease. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (2.5) for each lease of a category 4 truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$2,500	$2,000	$1,500
Light duty truck	$3,500	$2,750	$1,750
Medium duty truck	$5,000	$4,000	$2,500
Heavy duty truck	$10,000	$8,000	$5,000

(3.5) Category 4 A. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article an amount set forth in paragraph (b) of this subsection (3.5) for the conversion of a category 4 A truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$5,000	$4,000	$2,500
Light duty truck	$7,000	$5,500	$3,500
Medium duty truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(4.3) Category 4 B purchase. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article an amount set forth in paragraph (b) of this subsection (4.3) for each purchase of a category 4 B truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$5,000	$4,000	$2,500
Light duty truck	$7,000	$5,500	$3,500
Medium duty truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(4.5) Category 4 B lease. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article an amount set forth in paragraph (b) of this subsection (4.5) for each lease of a category 4 B truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$2,500	$2,000	$1,500
Light duty truck	$3,500	$2,750	$1,750
Medium duty truck	$5,000	$4,000	$2,500
Heavy duty truck	$10,000	$8,000	$5,000

(5.5) Category 4 C. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article in the amount set forth in paragraph (b) of this subsection (5.5) for the conversion of a category 4 C truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle	$5,000	$4,000	$2,500
Light duty truck	$7,000	$5,500	$3,500
Medium duty truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(6) Category 5. With respect to the income tax years commencing on or after January 1, 2015, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article of twenty-five percent of the actual cost incurred by the taxpayer during a tax year for category 5, not to exceed six thousand dollars.

(7) Category 6. With respect to the income tax years commencing on or after January 1, 2014, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article of twenty-five percent of the actual cost incurred by the taxpayer during a tax year for category 6, not to exceed six thousand dollars for each installed device and not to exceed fifty thousand dollars during a tax year for the installation of multiple devices. For purposes of the income tax year commencing on or after January 1, 2014, but before January 1, 2015, the installation must occur on or after July 1, 2014, but before January 1, 2015.

(8.3) Category 7 purchase. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (8.3) for each purchase of a category 7 truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle over 8,500 GVWR	$5,000	$4,000	$2,500
Light duty electric truck	$7,000	$5,500	$3,500
Medium duty electric truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(8.5) Category 7 lease. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (8.5) for each lease of a category 7 truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle over 8,500 GVWR	$2,500	$2,000	$1,500
Light duty electric truck	$3,500	$2,750	$1,750
Medium duty electric truck	$5,000	$4,000	$2,500
Heavy duty truck	$10,000	$8,000	$5,000

(9.5) Category 7 A. (a) Except as provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2018, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (9.5) for the conversion of a category 7 A truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/20 1/1/18	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Light duty passenger motor vehicle with a GVWR over 8,500 lbs	$5,000	$4,000	$2,500
Light duty electric truck	$7,000	$5,500	$3,500
Medium duty electric truck	$10,000	$8,000	$5,000
Heavy duty truck	$20,000	$16,000	$10,000

(10) Category 8. (a) With respect to the income tax years commencing on or after January 1, 2014, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article as a percentage set forth in paragraph (b) of this subsection (10) of the actual cost incurred by the taxpayer during the tax year for each purchase or lease of a category 8 trailer, not to exceed the amount set forth in paragraph (b) of this subsection (10). For purposes of the income tax year commencing on or after January 1, 2014, but before January 1, 2015, the purchase or lease of a category 8 trailer must occur on or after July 1, 2014, but before January 1, 2015.

(b) Income tax year commencing:

	1/1/2014 1/1/2015 1/1/2016	1/1/2017 1/1/2018	1/1/2019	1/1/2020	1/1/20 21 but before 1/1/20 22	Cap per income tax year
Category 8	18%	15%	%11.75	7.5%	3.75%	$7,500

(11) Category 8 A. (a) With respect to the income tax years commencing on or after January 1, 2014, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article as a percentage set forth in paragraph (b) of this subsection (11) of the actual cost incurred by the taxpayer during the tax year for the conversion of a refrigerated trailer to a category 8 A trailer, not to exceed the amount set forth in paragraph (b) of this subsection (11). For purposes of the income tax year commencing on or after January 1, 2014, but before January 1, 2015, the conversion of a refrigerated trailer to a category 8 A trailer must occur on or after July 1, 2014, but before January 1, 2015.

(b) Income tax year commencing:

	1/1/2014 1/1/2015 1/1/2016	1/1/2017 1/1/2018	1/1/2019	1/1/2020	1/1/20 21 but before 1/1/20 22	Cap per income tax year
Category 8 A	55%	45%	33.75 %	22.5%	11.25%	$7,500

(11.6) Category 9. (a) Except as otherwise provided in subsection (14) of this section, with respect to the income tax years commencing on or after January 1, 2017, but before January 1, 2022 JANUARY 1, 2020, there is allowed to any person a credit against the tax imposed by this article in an amount set forth in paragraph (b) of this subsection (11.6) for the conversion of a category 9 truck during the tax year.

(b) Income tax year commencing:

	1/1/2017 but before 1/1/2020	1/1/2020 but before 1/1/2021	1/1/2021 but before 1/1/2022
Category 9	$5,000	$4,000	$2,500

(14) (a) During the calendar year ending December 31, 2018, the Colorado energy office created in section 24-38.5-101, C.R.S., shall determine whether category 4, 4 A, 4 B, 4 C, 7, 7 A, or 9 medium or heavy duty trucks generate life-cycle emissions materially greater than comparable medium or heavy duty trucks using traditional fuel. Such a life-cycle analysis must include the direct emissions regulated by the United States environmental protection agency or by the department of public health and environment that are associated with producing, transporting, and using the alternative or traditional fuels. The Colorado energy office shall consider the likely adoption of future technology at each stage of the life-cycle.

(b) In making the determinations described in paragraph (a) of this subsection (14), the Colorado energy office shall consider public input, any analysis or reports prepared by the department of public health and environment, other states, or the United States environmental protection agency, and any peer-reviewed studies conducted in the United States that evaluate similar matters.

(c) In the event that category 4, 4 A, 4 B, 4 C, 7, 7 A, or 9 medium or heavy duty trucks are shown to generate life-cycle emissions materially greater than comparable traditional fuel trucks, then the Colorado energy office shall notify the department of revenue that no tax credit specified in this section is available for such trucks for the income tax years commencing on or after January 1, 2019, but before January 1, 2022; except that the Colorado energy office may determine if a particular category 4, 4 A, 4 B, 4 C, 7, 7 A, or 9 truck model or engine does not generate life-cycle emissions materially greater than a comparable traditional fuel truck model or engine and is thus allowed a credit for a given income tax year, or the Colorado energy office may allow a credit if the taxpayer can demonstrate that the taxpayer has a long-term fuel contract for his or her category 4, 4 A, 4 B, 4 C, 7, 7 A, or 9 truck from a green fuel provider, such that the life-cycle emissions from such truck are not materially greater than the emissions of a comparable traditional fuel truck. For purposes of this paragraph (c), "green fuel provider" means the alternative fuel is produced and delivered by providers that have adopted best practices for low life-cycle emissions. On or before January 1, 2019, and on or before each January 1 thereafter through January 1, 2021, the Colorado energy office and the department of revenue shall, through their respective websites, specify which category 4, 4 A, 4 B, 4 C, 7, 7 A, or 9 medium or heavy duty trucks are not allowed a credit for a given income tax year.

(18) This section is repealed, effective December 31, 2026 DECEMBER 31, 2022.

SECTION 4. In Colorado Revised Statutes, 43-4-205, add (6.4) as follows:

43-4-205. Allocation of fund. (6.4) FOR THE 2017-18 STATE FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER THROUGH THE 2020-21 STATE FISCAL YEAR, THE STATE CONTROLLER SHALL CREDIT AN AMOUNT OF TAX REVENUE ESTIMATED TO BE RETAINED BY THE REPEAL OF THE INCOME TAX CREDIT FOR INNOVATIVE MOTOR VEHICLES AND THE REPEAL OF THE INCOME TAX CREDIT FOR INNOVATIVE TRUCKS TO THE HIGHWAY USERS TAX FUND, TO BE ALLOCATED AND EXPENDED IN ACCORDANCE WITH THE FORMULA SPECIFIED IN SUBSECTION (6)(b) OF THIS SECTION.

SECTION 5. In Colorado Revised Statutes, add 39-22-516.9 as follows:

39-22-516.9. Voter approved revenue change related to repeals of the income tax credit for innovative motor vehicles and the income tax credit for innovative trucks - crediting of estimated revenue to the highway users tax fund - definition - repeal. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "BALLOT ISSUE" MEANS THE QUESTION REFERRED TO VOTERS IN SUBSECTION (2) OF THIS SECTION.

(2) AT THE ELECTION HELD ON NOVEMBER 7, 2017, THE SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS OF THE STATE FOR THEIR APPROVAL OR REJECTION THE FOLLOWING BALLOT ISSUE: "SHALL STATE TAXES BE INCREASED BY $7 MILLION ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER THROUGH THE 2020-21 STATE FISCAL YEAR BY THE REPEAL OF THE INCOME TAX CREDIT FOR INNOVATIVE MOTOR VEHICLES AND THE INCOME TAX CREDIT FOR INNOVATIVE TRUCKS AS A TAX POLICY CHANGE DIRECTLY CAUSING A NET TAX REVENUE GAIN TO THE STATE, WITH THE RESULTING ESTIMATED TAX REVENUE BEING CREDITED TO THE HIGHWAY USERS TAX FUND, AND WITH AN ESTIMATE OF THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW?"

(3) FOR PURPOSES OF SECTION 1-5-407 (5)(b), THE BALLOT ISSUE IS A PROPOSITION. SECTION 1-40-106 (3)(d) DOES NOT APPLY TO THE BALLOT ISSUE.

(4) (a) IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE VOTE "NO/AGAINST", THEN THIS SECTION IS REPEALED, EFFECTIVE FEBRUARY 1, 2018.

(b) IF A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE VOTE "YES/FOR", THEN THIS SUBSECTION (4) IS REPEALED, EFFECTIVE FEBRUARY 1, 2018.

SECTION 6. Appropriation - adjustments to 2017 long bill. To implement this act, the general fund appropriation made in the annual general appropriation act for the 2017-18 state fiscal year to the office of the governor for use by the Colorado energy office for program administration is decreased by $70,000.

SECTION 7. Effective date. (1) Except as specified in subsection (2) of this section, this act takes effect upon passage.

(2) (a) Sections 1 through 4 and 6 of this act take effect only if, at the November 2017 statewide election, a majority of the voters approve the ballot issue submitted pursuant to section 39-22-516.9, Colorado Revised Statutes, enacted in section 5 of this act.

(b) If the voters at the November 2017 statewide election approve a measure described in subsection (2)(a) of this section, then sections 1 through 4 and 6 of this act take effect on the date of the official declaration of the vote thereon by the governor.

SECTION 8. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.