The state trucking association in Colorado helped push through its Green Truck and Motor Carrier Economic Development Program, which was recently signed into law. The new law will change how sales tax is calculated on fleets, basing it instead on how many miles are spent in the state. That change, along with enterprise tax provisions, will not take effect until January 2011. In addition, the state will institute a “Green Truck Fund,” which is intended to help fleets adopt EPA SmartWay techologies, particularly for pre-1990 trucks, which are responsible for the most signifcant emissions.
A new Colorado law aims to give incentives for reducing emissions as well as boost Colorado’s competitiveness in trucking, according to the Colorado Motor Carriers Association.
Colorado’s Green Truck and Motor Carrier Economic Development Program was signed into law last week by Gov. Bill Ritter.
The new law will change how state sales tax is applied on trucking fleets so that sales tax for tractors and trailers is based on how many miles the company spends in the state. At the moment, mileage isn’t taken into account when determining sales tax.
Over a period of five years, the state will implement the second part of the bill, which will allow rolling stock based in enterprise zones to qualify for the 3 percent equipment tax credit.
Lastly, the state will institute a “Green Truck Fund,” which will provide grants to help fleets implement EPA SmartWay technologies that reduce fuel emissions. Grants will also go toward the retirement of pre-1990 trucks, which are significant emitters of air pollution. The fund will be supported by donations, grants and private support.
The Colorado Motor Carriers Association, which was a champion for the bill, believes the initiative will “help to make Colorado a more tax- and business-friendly environment for trucking.” Gov. Ritter recognized the state association for its efforts in getting the bill passed.
As a result of funding restrictions, the sales tax change and enterprise tax credit provisions will not be implemented until Jan. 1, 2011.
[source - truckinginfo.com]
