DR 0618: Innovative Motor Vehicle Tax Credit - Election Statement (2025)

Who files this form

Use DR 0618 when an eligible purchaser or lessee voluntarily assigns an innovative motor vehicle or truck tax credit to a financing entity or motor vehicle dealer at the time of purchase or lease.

The purchaser or lessee and the financing entity or dealer must sign the agreement. The financing entity or dealer accepting the credit must electronically report the assignment, keep the original signed statement, and provide it to the Colorado Department of Revenue upon request or audit.

Complete a separate DR 0618 for each qualifying vehicle or truck. These instructions apply to tax years beginning on or after January 1, 2025. The relevant tax year is the tax year of the financing entity or dealer accepting the credit.

When it's due

For the 2025 election statement, reporting deadlines depend on the financing entity’s or dealer’s income tax year.

Calendar-year taxpayers: The printed schedule lists these purchase or lease periods and reporting dates:

• January through March: April 15.
• April through May: June 15.
• June through August: September 15.
• September through November: December 15.
• December: April 15. The calendar-year table does not specify the reporting year for this entry.

Fiscal-year taxpayers:

• Months 1 through 3: the 15th of month 4.
• Months 4 through 5: the 15th of month 6.
• Months 6 through 8: the 15th of month 9.
• Months 9 through 11: the 15th of month 12.
• Month 12: the 15th of month 4 of the following tax year.

What you'll need

Have the following information available to complete the statement:

• The purchaser’s or lessee’s name and SSN, ITIN, or FEIN. For a legal entity, use its legal name.
• The financing entity’s or dealer’s legal name and the identification number it will use on its Colorado income tax return.
• The purchase or lease date, or the date possession was taken if different.
• The vehicle’s full make and model names, model year, VIN, gross vehicle weight rating (GVWR), and manufacturer’s suggested retail price (MSRP).
• The vehicle type and transaction type.
• The transportation network company’s PUC license number, if the credit was assigned by a TNC or TNC contractor.
• The credit amounts, any administrative fee, and total compensation.
• Both parties’ signatures, dates, printed names, and titles if signing for a legal entity. Include an authorized agent’s name when applicable.

The compensation amount must be separately stated in the purchase, lease, or loan agreement. The financing entity or dealer must retain the original signed election statement.

How to file

1. Complete the purchaser or lessee information and the vehicle and transaction details.
2. Enter the MSRP on line 1. Use Table 1 for the base credit on line 2 and applicable additional credits on line 3.
3. Enter any administrative fee on line 4, up to $250. Calculate line 5 by adding lines 2 and 3, then subtracting line 4.
4. Have both parties review, sign, and date their agreement sections.
5. The financing entity or dealer must electronically submit the election statement information to the Colorado Department of Revenue by the applicable deadline.

For the reporting spreadsheet and detailed electronic reporting instructions, visit Tax.Colorado.gov/forms-in-number-order. Select “Quarterly DR 0618 Vehicle Credit Assignment Reporting” next to DR 0618.

Keep the original signed statement in the financing entity’s or dealer’s records and provide it to the Department upon request or audit. The text provides electronic reporting instructions, not a mailing address.

Common mistakes

• Using the agreement date when possession occurred later or earlier. If the dates differ, enter the date the purchaser or lessee took possession.
• Abbreviating the vehicle make or model. Use the complete manufacturer’s names, such as “Chevrolet” rather than “Chevy.”
• Combining vehicles on one statement. Complete a separate DR 0618 for each qualifying vehicle or truck.
• Overlooking the lease requirement. A lease must last at least two years to qualify. Mark only one purchase-or-lease selection.
• Entering additional credits for a category 7 truck. Enter zero on line 3 for these trucks.
• Charging too large an administrative fee. The fee cannot exceed $250.
• Delaying compensation. Compensation must take effect on the date the election statement is signed, not a later date, and must be separately stated in the purchase, lease, or loan agreement.
• Claiming the credit after assigning it. By signing, the purchaser or lessee gives up the right to claim that credit on their income tax return.

Questions people ask

Is assigning the credit required?

No. An eligible purchaser or lessee may voluntarily assign the credit to a financing entity or motor vehicle dealer at the time of the qualifying purchase or lease.

What credit amounts does the 2025 form list?

Table 1 lists a $3,500 base credit for category 1 vehicles with a GVWR of 8,500 pounds or less. It also lists a $600 assignment credit and a $2,500 additional credit for qualifying category 1 vehicles with an MSRP under $35,000. The $600 credit applies when the qualifying vehicle is sold or leased at a location where the credit may be assigned and the purchaser or lessee assigns it.

For category 7, the base credit is $3,500 for qualifying light-duty passenger vehicles over 8,500 pounds and light-duty trucks from 8,501 to 10,000 pounds. It is $12,000 for medium-duty trucks from 10,001 to 26,000 pounds and heavy-duty trucks over 26,000 pounds.

Is there an MSRP limit?

The instructions say no credit is allowed for a motor vehicle with an MSRP over $80,000 purchased or leased on or after July 1, 2023. This limitation does not apply to qualifying trucks or light-duty passenger vehicles with a GVWR over 8,500 pounds that qualify for the innovative truck credit.

How does the purchaser or lessee receive compensation?

Compensation may be a cash payment, a reduction in cash price, a capitalized cost reduction, or similar consideration. It must take effect when the statement is signed. The amount on line 5 equals the base credit plus additional credits, minus any administrative fee of up to $250.

Official sources

• https://tax.colorado.gov/sites/tax/files/documents/DR_0618_2025_e_wo.pdf