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Innovative Motor Vehicle & Truck Credits - Form 0617

Understanding the Benefits and Application of Form 0617

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Innovative Motor Vehicle & Truck Credits - Form DR 0617

Form DR 0617 is used by Colorado taxpayers to claim the Innovative Motor Vehicle and Innovative Truck Credit for a vehicle they purchased or leased. This credit is available for new qualifying motor vehicles and trucks, and it is not available for used vehicles.

Eligibility Requirements

  • New Vehicle Only: The credit is only available for new motor vehicles or trucks. Used vehicles do not qualify.
  • MSRP Limitation: No credit is allowed for any motor vehicle with a Manufacturer’s Suggested Retail Price (MSRP) over $80,000. However, this limit does not apply to qualifying trucks or light-duty passenger vehicles with a GVWR over 8,500 lbs. that qualify for the innovative truck credit.
  • Additional Credit for Lower MSRP: Electric motor vehicles with an MSRP under $35,000 are eligible for an additional $2,500 credit.
  • Lease Requirement: If claiming the credit for a leased vehicle, the lease must be for a term of at least two years.

Vehicle Information Required

To complete Form DR 0617, you must provide the following details for each qualifying vehicle:

  • Vehicle Model Year
  • Vehicle Make (full manufacturer name, e.g., “Chevrolet” not “Chevy”)
  • Vehicle Model
  • Vehicle Identification Number (VIN)
  • Manufacturer’s Suggested Retail Price (MSRP)
  • Gross Vehicle Weight Rating (GVWR)
  • Date of purchase or lease (MM/DD/YYYY)
  • Type of credit claimed: Purchased or Leased

Vehicle Types and Credit Amounts

The credit amount depends on the type and weight of the vehicle. The following categories are defined in Table 1 of Form DR 0617:

  • Category 1 - Electric or Plug-In Hybrid Electric Motor Vehicle (GVWR ≤ 8,500 lbs):
    • MSRP under $35,000: $6,000 credit
    • MSRP $35,000 to $80,000: $3,500 credit
  • Category 7 - Electric Truck or Plug-In Hybrid Electric Truck:
    • Heavy-Duty Trucks (GVWR > 26,000 lbs): $12,000 credit
    • Medium-Duty Trucks (GVWR 10,001–26,000 lbs): $12,000 credit
    • Light-Duty Trucks (GVWR 8,501–10,000 lbs): $3,500 credit
    • Light-Duty Passenger Motor Vehicles (GVWR > 8,500 lbs): $3,500 credit

Submission Requirements

  • Complete a separate Form DR 0617 for each qualifying vehicle.
  • Submit the completed form along with copies of the vehicle registration, invoice, purchase agreement, or lease agreement with your Colorado income tax return (e.g., DR 0104 or DR 0112).
  • If you assigned the credit to a motor vehicle dealer or financing entity at the time of purchase or lease, do not complete this form — you may not claim a credit you assigned.

Important Notes

  • Motor vehicle dealers and financing entities claiming assigned credits must use Form DR 0619 instead of DR 0617 starting in tax year 2024.
  • For more information on vehicle types and definitions, refer to Colorado Revised Statutes (C.R.S.) sections 39-22-516.7 and 39-22-516.8.
  • Department publications “Income Tax Topics: Innovative Motor Vehicle Credit” and “Income Tax Topics: Innovative Truck Credit” are available online at Tax.Colorado.gov/current-guidance-publications.

Source:

Form DR 0617 - Innovative Motor Vehicle and Truck Credit

Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions before filing.

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