BOULDER - A Boulder-based company's prototype of a delivery truck powered by a lithium-ion phosphate battery is producing better than expected results.

Boulder Electric Vehicle LLC rolled out its first prototype full-size electric truck earlier this month revealing more power at takeoff, acceleration and a farther range than designers expected.

The company, in search of funding, cleared the first round of cuts to receive $30 million in stimulus funding from the Department of Energy, which the company would use to produce a test run of 250 all-electric delivery trucks, said Carter Brown, the company's chief executive. He should know by mid-September whether or not the company receives the funding.

The prototype was expected to travel 100 miles to 120 miles between battery charges, but tests are producing distances beyond that, Brown said. "We are finding with aggressive driving we are getting better numbers, and with gentle driving even greater results."

The prototype was built at the company's plant at 4747 North 26th St. in North Boulder, but Brown is looking for a location for producing its pilot run and eventually assembly line for producing anywhere from 10,000 to 50,000 vehicles per year.

"I'd really like to stay in Boulder County," Brown said, but added that may not be feasible. "We are looking at Pueblo and Golden as well."

Brown is working with the Colorado Office of Economic Development and the Denver Economic Development Corp. to search for locations as well as investors.

The company has been lining up demonstrations for potential investors. Brown said there were a couple of interested parties, but he couldn't disclose the names. "We are doing a lot of conferences where there are potential buyers," he said. "I am trying to get sales going on the delivery truck this year."

The delivery trucks are designed to carry up to 6,000 pounds of cargo. Due to the low noise, companies might be able to use the vehicles during hours when noisy trucks aren't allowed.

While the trucks will cost around $100,000, there are a number of federal and state tax incentives to offset the price.

"There are very good tax incentives for customers to buy our vehicles during the next three to five years after which the tax incentives start expiring," Brown told the Business Report in May. "This year a government-related entity can buy one of our trucks for $100,000 and only have to pay $5,000. Those incentives change from year to year."

Colorado has one of the highest tax credits for purchasing an alternative fuel vehicle. The credits can go as high as 85 percent of the cost of the vehicle. Every state has different limits. Federal tax credits are around $10,000 per truck and $6,000 for a van.

Brown hopes to sell the vehicles to companies like United Parcel Service of America Inc. (NYSE: UPS), FedEx Corp. (NYSE: FDX) as well as other utility and delivery companies. The fleet sales will operate on 50 percent down and 50 percent on delivery.

Boulder Electric Vehicle currently employs eight people, but that number could increase significantly once manufacturing ramps up. Brown said his company could bring 2,000 jobs to the Front Range in five to seven years.