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Discussion Starter · #1 ·
Hi,
I am a 3 1/2 year Nissan LEAF lessor who, after Nissan's announcement that it will not offer 200+ mile range in the LEAF until 2019, has decided to bolt for a Bolt (my 84 mile 24 kWH LEAF has been my only car for 2 1/2 years, thanks to a divorce).

I went to John Elway Chevy in Englewood, Colo. today and test drove a Bolt LT. I want to lease a Bolt LT with the convenience and confidence packages.

The sales guy said the best they could do for me on a lease for an LT with convenience + confidence + QC was $430 per month, 12k miles a year, with $2,400 down.

I was surprised by this "deal" as I did not feel it was a "deal" at all given that I've seen Calif. Bolt lessors writing about leases in low 300s with about 2k down and 12-15k miles per year.

I was also under the apparently mistaken impression that the Colorado EV state tax credit had been re-done for 2017 to be an "upfront" rebate.

John Elway Chevy says, no, this is not the case, at least not with GM (Nissan might be doing things differently they said). I also realized after I left that I had not asked the sales guy and sales GM, who came to talk to me, if the lease price they quoted me included GM/John Elway pocketing the Federal tax credit or not. I will assume it does, which makes it even less of a "good deal" in my view.

My question is:

1) What is the Colorado State tax credit for a leased, not a purchased, Chevy Bolt?

I have seen the number $2,500 in some older forums here on ChevyBolt.Org. But I want to make sure that: a) $2,500 is the correct number; b) that I will indeed receive a $2,500 credit (only, of course, after filing the appropriate state income tax paperwork in April 2018).

2) Can I do the monthly math this way --> Monthly Bolt payment - Colorado State Tax Credit of $2,500/12 months, or - $208 per month = my actual monthly lease cost -- after taking into account the State Tax Credit spread across 12 months?

Thank you.

--Christof D-H
Editor & Founder, SolarChargedDriving.Com
 

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Thru 2019, it is a ONE TIME tax credit of $2,500 on a leased vehicle (50% of the credit for a purchase). Your math suggests you think it recurs annually (unless you really are looking at a 1 year lease, in which case the credit amount is $0 - the minimum is a two year lease).

In the case of a lease, the credit is allowed to the lessee and not to the lessor. In order to be considered a lease that
qualifies for the credit, the lease agreement must be for an initial term of at least two years.
And the credit can be assigned to the finance company. They can charge you up to $150 to do so.


A purchaser, lessor, or owner who obtains financing for the purchase, lease, or conversion of a qualifying vehicle may,
by mutual agreement with the financing entity, assign the credit to the financing entity. In the case of assignment, the
financing entity must compensate the vehicle purchaser, lessor, or owner for the full amount of the assigned credit.
Compensation must be made in the form of a cash payment, a reduction in cash price, a capitalized cost reduction, or
some similar consideration and the amount of the compensation must be separately stated in the purchase, lease, or
loan agreement. The financing entity may charge an administrative fee for the assignment of the credit, but such fee
cannot exceed $150.
All the details here:
https://www.colorado.gov/pacific/sites/default/files/Income69.pdf
 

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There is a current thread over at leasehackr entitled "2017 Chevy Bolt EV Premier 36mo/10000mi in Texas" which may be helpful.

2017 CHEVROLET BOLT EV (5DR HB PREMIER SUPPORTED)

Term: 36 Annual Mileage: 10k
Single Pay: N MSRP: $43,400
Net Selling Price: $40,000 Dealer Discount: $3,400
Net Cap: $36,645 Lease Cash: $1,450
Down Payment: $0 Net Trade: $0
Other Incentives: $2,500 Ancillary/Other: $0
Mileage at Inception: 0 Purchase Miles: 0
Residual %: 60% Residual $: $26,040
Acq Fee: $595 Security Deposit: Waived
Due at Signing $343.48
Payment w/o Taxes

$343.48 - add (your States) taxes + interest and it's about what they quoted you.

2) Can I do the monthly math this way --> Monthly Bolt payment - Colorado State Tax Credit of $2,500/12 months, or - $208 per month = my actual monthly lease cost -- after taking into account the State Tax Credit spread across 12 months?
If this is a tax Credit, wouldn't one need to have a tax liability in excess of the Credit in order to actually realize the $2,500? I may be mistaken, but I don't think the State mails one a check in this scenario. Also, I am inferring from your statement that you want the finance company to reduce your first 12 payments by the amount of the potential tax credit?

Edit: Found this from The Denver Post regarding the "Tax Credit";
"That means the buyer would give the right to claim the credit to the financial lender, who in turn would offer the discount at the time of purchase. That would allow auto dealers to offer financing plans that include the credit."​

And then from Colorado Income 67:
"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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Discussion Starter · #4 ·
There is a current thread over at leasehackr entitled "2017 Chevy Bolt EV Premier 36mo/10000mi in Texas" which may be helpful.

2017 CHEVROLET BOLT EV (5DR HB PREMIER SUPPORTED)

Term: 36 Annual Mileage: 10k
Single Pay: N MSRP: $43,400
Net Selling Price: $40,000 Dealer Discount: $3,400
Net Cap: $36,645 Lease Cash: $1,450
Down Payment: $0 Net Trade: $0
Other Incentives: $2,500 Ancillary/Other: $0
Mileage at Inception: 0 Purchase Miles: 0
Residual %: 60% Residual $: $26,040
Acq Fee: $595 Security Deposit: Waived
Due at Signing $343.48
Payment w/o Taxes

$343.48 - add (your States) taxes + interest and it's about what they quoted you.

If this is a tax Credit, wouldn't one need to have a tax liability in excess of the Credit in order to actually realize the $2,500? I may be mistaken, but I don't think the State mails one a check in this scenario. Also, I am inferring from your statement that you want the finance company to reduce your first 12 payments by the amount of the potential tax credit?
If your tax liability is less than $2,500, Colorado will mail you a refund equivalent to $2,500 - your tax liability. At least that's the way I interpret the following, from a Colorado Innovative Motor Vehicle PDF/Document -->

"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."

Income 67: Innovative Motor Vehicle Credit for Tax Years 2015-
2016
 

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Income 67: Innovative Motor Vehicle Credit for Tax Years 2015-
2016
Income 69 covers Tax years 2017 - 2012
https://www.colorado.gov/pacific/sites/default/files/Income69.pdf

From CRS Title 39 Taxation § 39-22-5168
(13) If a credit authorized in this section exceeds the income tax due on the income of the taxpayer for the taxable year, the excess credit may not be carried forward and must be refunded to the taxpayer.


The Federal Tax Credit is "use it or lose it" - no rollover, no refund.

Colorado will basically apply the credit as a tax payment and will refund any overpayment of taxes.

Form used to assign the credit to the finance company so it can be used as a CCR on your lease:
https://www.colorado.gov/pacific/sites/default/files/DR0618.pdf
 

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Glad I am not the only one that is confused on this. From a friend of mine that just bought his leaf, Nissan has a "preferred lender" that is set up to do the $5k up front at the point of sale. In the case of those dealerships here in CO that do not have this set up, it looks like you have to go through someone that is or you will get it when you file taxes. Everything I have read has been "up to..." so that $7500 and the $5000 here in CO is still in limbo. This is why I am trying to find someone in the CO area that has bought a Bolt from Chevy so I can find out how the process went for them.
 

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Glad I am not the only one that is confused on this. From a friend of mine that just bought his leaf, Nissan has a "preferred lender" that is set up to do the $5k up front at the point of sale. In the case of those dealerships here in CO that do not have this set up, it looks like you have to go through someone that is or you will get it when you file taxes. Everything I have read has been "up to..." so that $7500 and the $5000 here in CO is still in limbo. This is why I am trying to find someone in the CO area that has bought a Bolt from Chevy so I can find out how the process went for them.
Not real sure what you are asking.
The $7,500 is NEVER available as a Point of Sale rebate on a purchase - it is structured as a Tax Credit, is not transferable, does not roll over to subsequent years, and the "up to" means that if you don't have a $7500 tax liability you may not be able to take advantage of the entire credit. This does not mean writing them a $7500 check when you file. It is your "Total Tax" as found on Line 63 of your 1040.

The Colorado Tax Credit is not tied to tax liability. You will always get the benefit of the entire amount.

Neither are what I would consider to be "in limbo" as the terms and conditions are well defined and not conditional on something like funding being made available (CA Clean Air rebates are "in limbo").

Only you can decide what is most important. Dealership A might offer the CO credit as a POS rebate (for a $150 fee) and get MSRP on Bolts. Dealer B might not offer the credit as a POS deduction, but offer Bolts at $2K below MSRP.
Calling a dealership will let you know if they are familiar with the process (you want F&I, not a salesperson). It is really the finance company and not the dealer that gets the credit, but both the dealer and the finance company need to be on board. Not all buyers will necessarily qualify for a loan with a lender willing to accept the credit transfer.

You can reduce your withholding (resulting in bigger paychecks) to take advantage of both credits before you actually file your taxes. Just make sure and readjust in the next tax year to avoid a big tax liability for the following year.
 

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Not real sure what you are asking.
The $7,500 is NEVER available as a Point of Sale rebate on a purchase - it is structured as a Tax Credit, is not transferable, does not roll over to subsequent years, and the "up to" means that if you don't have a $7500 tax liability you may not be able to take advantage of the entire credit. This does not mean writing them a $7500 check when you file. It is your "Total Tax" as found on Line 63 of your 1040.

The Colorado Tax Credit is not tied to tax liability. You will always get the benefit of the entire amount.
I new the $7500 would not roll over. The question I have always wondered about that credit is...especially since I have a kid that will be born in December...would I not qualify for the full $7500 since I would have a return like I have in the last few years? Or is this something that would allow me to get a bigger return?


As far as the Colorado credit goes...it sounds like the full amount is a given, it's just a matter of how it's given. Seems like most dealerships here in the Colorado Springs area are not set up to do the credit at the Point of Sale. One Nissan dealer ship was set up for it and that is how my friend was able to get the $5k at the time he purchased the vehicle when he got his Leaf. I asked the dealership yesterday and I was told I would have to file it when I filed taxes. So that is where I am confused.
 

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I new the $7500 would not roll over. The question I have always wondered about that credit is...especially since I have a kid that will be born in December...would I not qualify for the full $7500 since I would have a return like I have in the last few years? Or is this something that would allow me to get a bigger return?


As far as the Colorado credit goes...it sounds like the full amount is a given, it's just a matter of how it's given. Seems like most dealerships here in the Colorado Springs area are not set up to do the credit at the Point of Sale. One Nissan dealer ship was set up for it and that is how my friend was able to get the $5k at the time he purchased the vehicle when he got his Leaf. I asked the dealership yesterday and I was told I would have to file it when I filed taxes. So that is where I am confused.
Look at your "Total Tax" from last year. That will give you your baseline. If your income has gone up, that number will go up. If you have more deductions (birth of a child, starting tithing at church, etc) that number will go down. Major changes like filing status change (married and filing jointly), purchase of a home, itemized versus standard deductions will complicate things further.
"Total Tax" (Line 63 on Form 1040, Line 39 on Form 1040A, Line 12 on Form 1040EZ) is the key. >$7500 and you can use the whole credit.

Nobody on this (or any forum) can tell you whether you will qualify. Nor can the dealer. That question is best left to a tax professional. If you are your own "tax professional" and use a tax program, you can often run some "what if" scenarios.

As to the Colorado dealer, they told you they don't accept the CO tax credit transfer (hopefully you got this from Finance and not Sales). What is confusing?
They are able - but not obligated - to do it (by Colorado statute). But they, and/or the finance companies they work with, choose not to. Might be something you can negotiate, might not be.

If you are serious about purchasing the Bolt, agree on selling price, and are ready to complete the paperwork you might have some leverage. More likely the Bolt is a very small percentage of their sales and they have deemed it not worth the time/hassle. Losing a sale (you must be ready to walk away from the deal) may or may not change their mind.
 

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As to the Colorado dealer, they told you they don't accept the CO tax credit transfer (hopefully you got this from Finance and not Sales). What is confusing?
They are able - but not obligated - to do it (by Colorado statute). But they, and/or the finance companies they work with, choose not to. Might be something you can negotiate, might not be.

If you are serious about purchasing the Bolt, agree on selling price, and are ready to complete the paperwork you might have some leverage. More likely the Bolt is a very small percentage of their sales and they have deemed it not worth the time/hassle. Losing a sale (you must be ready to walk away from the deal) may or may not change their mind.
I guess my confusion is from the lack of uniformity from one dealer to another. In a case where it's something the state offers, why wouldn't it just be standardized and make the buying experience better for the consumer?


As far as walking away from a deal...that's easy enough. I love the negotiation process and walking away from what I don't feel is a good deal is an easy thing to do. .
 
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