SB 25-320

Senate Bill 25-320, which has been signed into law in Colorado, extends a tax break for environmentally friendly heavy trucks and their parts until January 1, 2029. It also increases fees on special fuel used for bridges and tunnels over the next few years to fund infrastructure projects. Additionally, it allocates money from a specific account to help with implementing these changes. This bill benefits companies that use low-emission vehicles and impacts drivers who pay for fuel used in bridge and tunnel transit systems.

Official Summary

The act reinstates the sales and use tax exemption for certain low-emitting heavy-duty motor vehicles, vehicle power sources, and parts for vehicle power source conversion, which had expired as of January 1, 2025, for the period beginning on and after August 1, 2025, but prior to January 1, 2029, and clarifies the intent of the exemption. The act increases the amount of the bridge and tunnel impact fee to be imposed per gallon of special fuel by the statewide bridge and tunnel enterprise from $0.05 per gallon to $0.07 per gallon for state fiscal year 2025-26, from $0.06 per gallon to $0.07 per gallon for state fiscal year 2026-27, and from $0.07 per gallon to $0.08 per gallon for state fiscal year 2027-28. For state fiscal year 2025-2026, $3,959 is appropriated from the Colorado DRIVES vehicle services account in the highway users tax fund to the department of revenue for implementation of the act. (Note: This summary applies to this bill as enacted.)

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