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.
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.
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
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.