A tax provision in Colorado's HB1289 extends subsidies for electric lawn equipment sales—and it matters more to fleet operators than most realize.
Most Colorado trucking and transportation owners don't realize that buried in HB1289—a bill primarily about tax expenditures—is a three-year extension of a tax credit that directly affects how equipment costs flow through their supply chain and purchasing decisions.
Here's what's actually in the bill, and why it matters to your operation.
Section 11 of HB1289 (found on page 25) extends Colorado's electric lawn equipment tax credit through December 31, 2029. The credit was originally set to expire at the end of 2026; this extension adds three additional years.
The mechanism is straightforward: retailers who register with the Colorado Department of Revenue as "qualified retailers" receive a refundable income tax credit equal to 33 percent of the aggregate purchase price of qualifying electric-powered lawn equipment they sell. That's a one-third subsidy.
Here's the practical part: retailers typically pass this credit through to buyers as a point-of-sale discount. So when you or your fleet manager buy new electric lawn equipment from a participating retailer, you're effectively getting a 33 percent price reduction built into the transaction.
If your company maintains grounds, manages landscaping at facilities, or operates equipment maintenance yards, you buy lawn equipment. That equipment includes mowers, trimmers, blowers, and other powered tools. The credit applies to new electric versions of these items.
The extension through 2029 means the subsidy remains available for your purchasing decisions over the next several years. If you've been holding off on upgrading to electric equipment because of upfront cost, this credit effectively reduces that barrier by a third—at least through the end of 2029.
The bill also adds a new feature: qualified retailers can now request quarterly advance payments of the credit, rather than waiting to claim it annually. That cash-flow improvement may make it easier for retailers to absorb and pass through the discount immediately.
The credit applies to tax years beginning January 1, 2024, through December 31, 2029. If you're purchasing equipment in 2024 or later from a registered retailer, you should ask whether they're participating in the program and whether the discount applies to your purchase.
After December 31, 2029, the credit expires—unless the legislature extends it again.
When budgeting for grounds maintenance or yard equipment replacement, confirm that your suppliers are registered as qualified retailers with Colorado's Department of Revenue. Not all retailers participate, so the discount isn't automatic. Ask directly whether the 33 percent credit is available on your purchase.
For fleet managers planning multi-year equipment refresh cycles, the 2029 expiration date is worth noting in your capital planning.
Source: Colorado HB1289, Section 11, Page 25. Effective for tax years 2024–2029.