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Colorado offers a $5000.00 tax credit for EV's. Does this mean I have to have paid at least that much in state tax?
Colo dept of revenue advises an answer may be forthcoming in 3 weeks or more.
 

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Colorado offers a $5000.00 tax credit for EV's. Does this mean I have to have paid at least that much in state tax?
Colo dept of revenue advises an answer may be forthcoming in 3 weeks or more.

The way I read it, it is a flat-out payment to you.


from: https://www.pluglesspower.com/learn...al-tax-credits-grants-loans-rebates/#colorado


Colorado Wins for Highest State Tax Credits

Innovative Motor Vehicle Tax Credit:

Colorado offers big, bold EV incentives. The 2015-2016 incentive amount is calculated on a formula based on the MSRP of the vehicle. See the “fine print” section for details. The bottom line is that Colorado residents who bought or leased an EV or Plug-in Hybrid Electric Vehicle (PHEV) in 2015-2016 can qualify for a tax credit of up to $6,000.
In 2017, the formula is eliminated and the max tax credit was reduced slightly. But it’s still hefty. This year Colorado EV and PHEV buyers may claim a flat tax credit of $5,000. Combined with the $7,500 federal rebate it’s one heck of a kick in the IRS’s bill. Of course, you’d need to have high enough income that your tax liability is higher than the credit amount.
Expiration:

The Colorado EV / PHEV tax credit expires January 1, 2022.
Fine print for 2015-2016:

  • Colorado EV tax credit formula: [(MSRP or Used Vehicle Price) – (Any other available grants and/or tax credits)] x [(Battery capacity in kWh)/100], up to $6,000.
  • Credit formula can be applied to new and used EVs and PHEVs.
  • Other available grants and rebates must be applied in the formula, even if they are not claimed.
 

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Discussion Starter · #3 ·
Colorado offers a $5000.00 tax credit for EV's. Does this mean I have to have paid at least that much in state tax?
Colo dept of revenue advises an answer may be forthcoming in 3 weeks or more.

The way I read it, it is a flat-out payment to you.


from: https://www.pluglesspower.com/learn...al-tax-credits-grants-loans-rebates/#colorado


Colorado Wins for Highest State Tax Credits

Innovative Motor Vehicle Tax Credit:

Colorado offers big, bold EV incentives. The 2015-2016 incentive amount is calculated on a formula based on the MSRP of the vehicle. See the “fine print” section for details. The bottom line is that Colorado residents who bought or leased an EV or Plug-in Hybrid Electric Vehicle (PHEV) in 2015-2016 can qualify for a tax credit of up to $6,000.
In 2017, the formula is eliminated and the max tax credit was reduced slightly. But it’s still hefty. This year Colorado EV and PHEV buyers may claim a flat tax credit of $5,000. Combined with the $7,500 federal rebate it’s one heck of a kick in the IRS’s bill. Of course, you’d need to have high enough income that your tax liability is higher than the credit amount.
Expiration:

The Colorado EV / PHEV tax credit expires January 1, 2022.
Fine print for 2015-2016:

  • Colorado EV tax credit formula: [(MSRP or Used Vehicle Price) – (Any other available grants and/or tax credits)] x [(Battery capacity in kWh)/100], up to $6,000.
  • Credit formula can be applied to new and used EVs and PHEVs.
  • Other available grants and rebates must be applied in the formula, even if they are not claimed.
Thanks, I finally found the colo dept of revenue's language, below.
Just to remind, the tax credit Incentive for 2018 is $5000.
The last sentence states that any excess over the (less than $5000) Colo tax paid will be refunded to the individual.

~~~~~~~~~~

CLAIMING THE CREDIT
A Colorado income tax return for the tax year in which the qualifying motor vehicle was purchased, leased, or
converted must be filed in order to claim the credit. The income tax return claiming the credit must include the
following attachments:
 A completed Form DR 0617
 A copy of the invoice, purchase agreement, or lease agreement for the qualifying motor vehicle
 A copy of the Colorado vehicle registration for the qualifying motor vehicle
 Any credit claimed for the purchase of a used vehicle must be accompanied by a Vehicle History Report"
showing the vehicle was not previously registered in Colorado. A “Vehicle History Report” can be obtained
from any of a number of third party companies that offer such reports. An internet search for the phrase
"Vehicle History Report" should provide a listing of companies that can produce this report.
The innovative motor vehicle credit is a refundable credit. The allowable credit is first applied against the income tax
liability of the person who purchases, leases, or converts the qualifying motor vehicle. If the credit exceeds the tax
due, the excess credit will be refunded.
 

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I haven't checked this recently, but I think that the new Colorado plan allows an immediate credit (discount) when the purchase is made, if the transaction is financed.
 

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The way I read it, it is a flat-out payment to you.


from: https://www.pluglesspower.com/learn...al-tax-credits-grants-loans-rebates/#colorado


Colorado Wins for Highest State Tax Credits

Innovative Motor Vehicle Tax Credit:

Colorado offers big, bold EV incentives. The 2015-2016 incentive amount is calculated on a formula based on the MSRP of the vehicle. See the “fine print” section for details. The bottom line is that Colorado residents who bought or leased an EV or Plug-in Hybrid Electric Vehicle (PHEV) in 2015-2016 can qualify for a tax credit of up to $6,000.
In 2017, the formula is eliminated and the max tax credit was reduced slightly. But it’s still hefty. This year Colorado EV and PHEV buyers may claim a flat tax credit of $5,000. Combined with the $7,500 federal rebate it’s one heck of a kick in the IRS’s bill. Of course, you’d need to have high enough income that your tax liability is higher than the credit amount.
Expiration:

The Colorado EV / PHEV tax credit expires January 1, 2022.
Fine print for 2015-2016:

  • Colorado EV tax credit formula: [(MSRP or Used Vehicle Price) – (Any other available grants and/or tax credits)] x [(Battery capacity in kWh)/100], up to $6,000.
  • Credit formula can be applied to new and used EVs and PHEVs.
  • Other available grants and rebates must be applied in the formula, even if they are not claimed.
"Combined with the $7,500 federal rebate ...". It's not a rebate from the Fed. It's a tax credit.

In CA it's a $2500 rebate. They send you a check.
 

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So it sounds like it's the same as the federal tax credit, but for state income tax. Residents of Colorado must owe at least $5000 in Colorado state income tax to claim the full benefit on their Colorado state income tax return for the year they buy the EV/PHEV. If it's like the federal tax credit, they cannot claim more than they owe in state income taxes in the year they buy or lease an EV or PHEV.

I wonder if Colorado will let their taxpayers roll over any unclaimed credit into a following year? The federal government does NOT allow any of their $7500 credit to be rolled over.

The California rebate is taxable, unfortunately. But it still feels good to be getting money from The Big Oil Companies: the California rebates are paid out of 'cap and trade' money, which is fines collected from grossly polluting companies such as oil refiners. The money does not come out of the state's coffers.
 

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I wonder if Colorado will let their taxpayers roll over any unclaimed credit into a following year? The federal government does NOT allow any of their $7500 credit to be rolled over.

The California rebate is taxable, unfortunately.
Apropos of nothing, but when Georgia had an EV tax credit ($5,000), it could be rolled over for up to 15 years.

However, when our politicians eliminated the state tax credit, they did so with a vengeance -- they eliminated it entirely AND they instituted a $200 annual surcharge on EV owners (because we are not paying gasoline taxes and therefore need to cover our fair share of road maintenance). So with one piece of legislation, Georgia went from the single best EV state in the US to one of the worst...

The California rebate is subject to an annual income test, no?
 

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From the official summary of the Colorado legislation (HOUSE BILL 16-1332):
[The Bill] Allows a taxpayer to assign the income tax credit to a financing entity and thus forfeit the right to claim the tax credit on the taxpayer's tax return in exchange for the full nominal value of the income tax credit, minus an administrative fee not to exceed $150
The credit can be assigned to the dealer or the financing entity at the point and time of sale, and can be independent of the buyer's Colorado income tax situation.
 

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Apropos of nothing, but when Georgia had an EV tax credit ($5,000), it could be rolled over for up to 15 years.

However, when our politicians eliminated the state tax credit, they did so with a vengeance -- they eliminated it entirely AND they instituted a $200 annual surcharge on EV owners (because we are not paying gasoline taxes and therefore need to cover our fair share of road maintenance). So with one piece of legislation, Georgia went from the single best EV state in the US to one of the worst...

The California rebate is subject to an annual income test, no?

"The California rebate is subject to an annual income test, no?"

Yes, it is. There were a *lot* of hoops to jump through, but $2500 made it worth it.

Someone above indicated that it is taxable. Does that mean I'll get a 1099?
 
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