Colorado has reestablished the sales and use tax exemption for specific low-emission medium and heavy-duty vehicles, as well as their power sources and conversion parts. This exemption will take effect on August 1, 2025. This new tax exemption could save your business a substantial amount of money. Contact our trusted professionals for more information.

• This exemption pertains to the 2.9% state sales and use tax. Local sales taxes, such as those from counties, cities, and special districts, may still apply unless the particular jurisdiction has issued an exemption.
• The exemption is valid for purchases made before January 1, 2025, as well as for those made between August 1, 2025, and January 1, 2029. Vendors should not charge state sales tax on qualifying vehicles at the time of sale.
• If sales tax has been incorrectly paid, a refund can be requested within three years from the purchase date.