Viktor
Posts: 112
Joined: Sun Dec 02, 2012 2:56 pm
Delivery Date: 10 Dec 2012
Location: Centennial, CO

Re: Colorado

Thu Dec 13, 2012 10:37 am

ashp wrote:
We are paying Sales Tax on Full MSRP of the car if SL some where around 38000.

so for the purpose the rebate shouldn’t 38000 be used, even though after all rebates the adjusted capitalized cost is less ?


I'll vote for that :D

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dgpcolorado
Posts: 3067
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Location: The Western Slope, Colorado

Re: Colorado

Thu Dec 13, 2012 3:31 pm

Here's the actual law:
C.R.S. 39-22-516.5

COLORADO REVISED STATUTES

*** This document reflects changes current through all laws passed
at the Second Regular and First Extraordinary Sessions
of the Sixty-Eighth General Assembly of the State of Colorado 2012
and Constitutional and Statutory amendments approved at the General Election on November 6, 2012 ***

TITLE 39. TAXATION
SPECIFIC TAXES
ARTICLE 22.INCOME TAX
PART 5. SPECIAL RULES

C.R.S. 39-22-516.5 (2012)

39-22-516.5. Tax credit for innovative motor vehicles - repeal



(1) As used in this section, unless the context otherwise requires:

(a) "Actual cost incurred" means the actual cost paid by the purchaser or lessee for the vehicle, conversion, or idling reduction technologies. The actual cost paid shall be calculated as the net of any credits, grants, or rebates, including federal credits, grants, or rebates for which the purchaser or lessee is eligible, but excluding the credit specified in this section.

(b) "Alternative fuel" means an alternative fuel as defined in section 25-7-106.8 (1) (a), C.R.S.

(c) "Category 1" means a motor vehicle that complies with bin 1 of the federal tier 2 emissions standards published by the federal environmental protection agency in the federal register at 65 FR 6698 (February 10, 2000), as amended.

(d) "Category 2" means light duty passenger vehicle diesel-electric hybrids with a minimum fuel economy of seventy miles per gallon.

(e) "Category 3" means light duty passenger vehicle, light duty truck, and medium duty truck diesel-electric hybrid conversions that increase the fuel economy of the original motor vehicle by forty percent or more.

(f) "Category 4" means light duty passenger vehicle, light duty truck, and medium duty truck compressed natural gas conversions certified by the United States environmental protection agency and original equipment manufacturer compressed natural gas vehicles.

Editor's note: This version of paragraph (f) is effective until January 1, 2014.

(f) "Category 4" means light duty passenger vehicle, light duty truck, and medium duty truck compressed natural gas or liquefied petroleum gas conversions certified by the United States environmental protection agency and original equipment manufacturer compressed natural gas vehicles.

Editor's note: This version of paragraph (f) is effective January 1, 2014.

(g) "Category 5" means any idling reduction technologies.

(h) "Category 6" means a motor vehicle that complies with bin 2 or bin 3 of the federal tier 2 emissions standards published by the federal environmental protection agency in the federal register at 65 FR 6698 (February 10, 2000), as amended, with a minimum fuel economy of forty miles per gallon or miles per gallon gasoline equivalent or greater.

(i) "Gross vehicle weight rating" or "GVWR" shall have the same meaning as set forth in section 42-2-402 (6), C.R.S.

(j) "Hybrid vehicle" means a motor vehicle with a hybrid propulsion system that operates on both electricity and an alternative fuel or traditional fuel.

(k) "Idling reduction technologies" means idling reduction devices or advanced insulation, as those terms are defined in section 4053 of the internal revenue code, as amended, exempt from federal excise tax pursuant to said section 4053.

(l) "Light duty passenger vehicle" means a private passenger vehicle, including vans, capable of seating twelve passengers or less; except that the term does not include motor homes as defined in section 42-1-102 (57), C.R.S., or vehicles designed to travel on three or fewer wheels in contact with the ground.

(m) "Light duty truck" means a truck between zero and fourteen thousand pounds GVWR.

(n) "Medium duty truck" means a truck with a gross vehicle weight rating greater than fourteen thousand pounds up to twenty-six thousand pounds.

(o) "Miles per gallon gasoline equivalent" means the standard unit of measure that measures how many miles an alternative vehicle can travel on the equivalent energy of one United States gallon of traditional fuel.

(p) "Motor vehicle" means any self-propelled vehicle, including a vehicle that uses a hybrid propulsion system, that is:

(I) Titled and registered in the state; and

(II) Required to be licensed or subject to licensing for operation upon the highways of the state.

(q) "Plug-in hybrid electric vehicle" means:

(I) An original equipment manufacturer plug-in hybrid electric vehicle that can operate solely on electric power and that is capable of recharging its battery from an on-board generation source and an off-board electricity source; and

(II) A plug-in hybrid electric vehicle conversion that provides an increase in city fuel economy of seventy-five percent or more as compared to a comparable non-hybrid version vehicle for a minimum of twenty miles and that is capable of recharging its battery from an on-board generation source and an off-board electricity source. A vehicle shall be comparable if it is the same model year and the same vehicle class as established by the United States environmental protection agency and is comparable in weight, size, and use. Fuel economy comparisons shall be made using city fuel economy standards in a manner that is substantially similar to the manner in which city fuel economy is measured in accordance with procedures set forth in 40 CFR 600, as in effect on August 8, 2005.

(r) "Power source" means the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and miscellaneous components.

(s) "Traditional fuel" means a petroleum-based motor fuel commonly used on the highways of the state in the year 2008.

(t) "Uses an alternative fuel" or "to use an alternative fuel" means to operate solely on an alternative fuel, to operate on both an alternative fuel and a traditional fuel, or to operate alternately on a traditional fuel and an alternative fuel.

(2) (a) With respect to the tax years commencing on January 1, 2012, but prior to January 1, 2016, there shall be allowed to any person a credit against the tax imposed by this article, not to exceed six thousand dollars, for each motor vehicle purchased or leased by such person that:

(I) Uses or is converted to use an alternative fuel;

(II) Is a hybrid vehicle;

(III) Is a plug-in hybrid electric vehicle;

(IV) Has its power source replaced with a power source that uses an alternative fuel; or

(V) Is modified to include idling reduction technology.

(b) With respect to the tax years commencing on January 1, 2012, but prior to January 1, 2016, there shall be allowed to any person a credit against the tax imposed by this article, not to exceed seven thousand five hundred dollars, for each motor vehicle purchased or leased by such person that is converted to a plug-in hybrid electric vehicle.

(c) If a motor vehicle is leased, the lessee, not the lessor, is allowed to claim the credit allowed pursuant to this section.

(3) The amount of the credit allowed pursuant to this section shall be an amount equal to the percentage, as set forth in subsection (4) of this section, of the following:

(a) The difference between the actual cost incurred by such person during the tax year in purchasing or leasing a motor vehicle that uses an alternative fuel and the cost of the same motor vehicle that uses a traditional fuel or, if the same vehicle is not available, then the cost of the most similar vehicle, taking into account the model, make, engine size, and options, that uses a traditional fuel;


(b) The difference between the actual cost incurred by such person during the tax year in replacing an existing power source in a motor vehicle that uses a traditional fuel with a power source that uses an alternative fuel and the cost of replacing the existing power source in the motor vehicle with the same type of power source that uses a traditional fuel;

(c) The actual cost incurred by such person during the tax year in converting the motor vehicle to a fuel system that uses an alternative fuel;

(d) The actual cost incurred by such person in purchasing or leasing idling reduction technologies; or

(e) (I) The actual cost incurred by such person during the tax year in converting a hybrid vehicle to a plug-in hybrid electric vehicle.

(II) Persons who claimed a tax credit in previous years for the purchase or lease of model year 2004 and newer hybrid vehicles are eligible to claim an additional credit for the conversion of such a hybrid vehicle to a plug-in hybrid electric vehicle.

(4) For the purposes of subsection (3) of this section, the percentage of the difference in actual cost incurred or the percentage of the actual cost incurred that may be claimed as a credit pursuant to subsection (2) of this section shall be as follows:

Category:

Income Income Income Income
tax years tax years taxyears tax years
commencing commencing commencing commencing
on or after on or after on or after on or after
January January January January
1, 2012, 1, 2013, 1, 2014, 1, 2015
but prior to but prior to but prior to but prior to
January January January January
1, 2013: 1, 2014: 1, 2015: 1, 2016:
Category 1 75% 75% 75% 75%
Category 2 45% 25% 15% 15%
Category 3 55% 35% 25% 25%
Category 4 55% 35% 25% 25%
Category 5 25% 25% 25% 25%
Category 6 10% 10% 0% 0%


(5) Except as provided in subparagraph (II) of paragraph (e) of subsection (3) of this section, no more than one tax credit shall be granted pursuant to this section for any individual motor vehicle.

(6) 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 shall be refunded to the taxpayer.

(7) This section is repealed, effective December 31, 2020.

HISTORY: Source:. L. 2009: Entire section added, (HB 09-1331), ch. 416, p. 2299, § 4, effective June 4.L. 2011: (1)(f) amended, (HB 11-1081), ch. 262, p. 1142, § 2, effective January 1, 2014.L. 2012: (1)(a), IP(2)(a), (2)(b), (3)(a), (3)(d), and (3)(e)(II) amended and (2)(c) added, (HB 12-1299), ch. 98, p. 328, § 1, effective April 12.

Editor's note: Section 3 of chapter 262, Session Laws of Colorado 2011, provides that the act amending subsection (1)(f) applies to tax years commencing on or after January 1, 2014.

Cross references: In 2009, this section was added by the "Motor Vehicle Innovation Act". For the short title, see section 1 of chapter 416, Session Laws of Colorado 2009.
Since leasing involves the purchase of only part of the vehicle the DoR adjusts the tax credit, calculated as for a purchase, by the proportion of the capital cost to the total cost of the vehicle. If the federal tax credit is used to reduce that cost it isn't surprising that it is included in the capital cost calculation. Nor is it surprising that the federal tax credit is used to determine the "Incremental Price Difference" of the innovative fuel vehicle and a conventional vehicle. That calculation is just to determine the amount of the state tax credit (they fact that the do it wrong for the 2012 LEAF is another issue entirely). The two calculations are entirely separate. Suppose, for example, that Nissan finance didn't use the federal tax credit to reduce the cost of the car. You would then be paying a lot more for your leased LEAF and would get a larger proportion of the state tax credit because the capital cost of your leased car would be much larger.

The fact that sales tax is charged on the entire vehicle cost has to do with how the sales tax law is written and trying to apply that idea to the income tax credit isn't going to be a viable strategy.

By the way, if you buy a vehicle out of county you will only be subject to the state sales tax of 2.9%, according to my county clerk and recorder. (Perhaps it is different in the metro area with tax districts that span several counties.) Most of the state sales tax for cars stays in the county and is distributed among the taxing entities located in that county as a "specific use tax"; I found this out in my service as a library district trustee.
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Viktor
Posts: 112
Joined: Sun Dec 02, 2012 2:56 pm
Delivery Date: 10 Dec 2012
Location: Centennial, CO

Re: Colorado

Thu Dec 13, 2012 5:00 pm

So ifI am to buy in Douglas county I wouldn't have to pay sale tax in Arapahoe - that's a joke, unless proven otherwise

AndyLL
Posts: 27
Joined: Wed Nov 14, 2012 7:24 pm
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Leaf Number: 027090
Location: Castle Rock, CO
Contact: Website

Re: Colorado

Thu Dec 13, 2012 5:22 pm

(c) If a motor vehicle is leased, the lessee, not the lessor, is allowed to claim the credit allowed pursuant to this section.


This clears up that issue. I had hear of issues in the past when both the lessor and lessee claimed the credit and the state came billed the lessee.

Since leasing involves the purchase of only part of the vehicle the DoR adjusts the tax credit, calculated as for a purchase, by the proportion of the capital cost to the total cost of the vehicle. If the federal tax credit is used to reduce that cost it isn't surprising that it is included in the capital cost calculation. Nor is it surprising that the federal tax credit is used to determine the "Incremental Price Difference" of the innovative fuel vehicle and a conventional vehicle. That calculation is just to determine the amount of the state tax credit (they fact that the do it wrong for the 2012 LEAF is another issue entirely).


What car did they compare the Leaf to?
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User avatar
dgpcolorado
Posts: 3067
Joined: Sat Aug 20, 2011 1:56 pm
Delivery Date: 15 Dec 2011
Location: The Western Slope, Colorado

Re: Colorado

Thu Dec 13, 2012 7:44 pm

AndyLL wrote:...
Since leasing involves the purchase of only part of the vehicle the DoR adjusts the tax credit, calculated as for a purchase, by the proportion of the capital cost to the total cost of the vehicle. If the federal tax credit is used to reduce that cost it isn't surprising that it is included in the capital cost calculation. Nor is it surprising that the federal tax credit is used to determine the "Incremental Price Difference" of the innovative fuel vehicle and a conventional vehicle. That calculation is just to determine the amount of the state tax credit (they fact that the do it wrong for the 2012 LEAF is another issue entirely).


What car did they compare the Leaf to?
They refuse to say despite being asked about the basis of their calculations several times by a couple of us here. My guess is a Prius but I have no information on what they really used. With my tax return I used a fully loaded Nissan Versa, fully documented; it was rejected out of hand and the DoR substituted their own figure for the tax credit, with no explanation or documentation, and lowered my refund.

The reason I am sure their calculations are screwy is that they used the same number for "IPD" for the 2011 and 2012 model years as well as the same number for SV and SL models. That makes no sense since the prices changed substantially from 2011 to 2012. Had I been closer to the Front Range I'd have fought it in person. In my case, with a 2011 purchase, the tax credit was a lot closer to the $6000 maximum, about $5400, IIRC. So the amount I lost from the DoR error was less than it is with the current law.

The thing that really rankles is that the Chevy Volt gets the full $6000 tax credit and it is a gas-burning hybrid with half the electric range of the LEAF!
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ashp
Posts: 10
Joined: Wed Dec 05, 2012 9:31 am
Delivery Date: 31 Dec 2012

Re: Colorado

Thu Dec 13, 2012 8:38 pm

I brought my car in Arapahoe county, I live in douglas county. I was charged sales tax as per my home address not 2.9 % ....

Viktor
Posts: 112
Joined: Sun Dec 02, 2012 2:56 pm
Delivery Date: 10 Dec 2012
Location: Centennial, CO

Re: Colorado

Fri Dec 14, 2012 3:09 am

So, I don't have utilities rebate in my part of town, but do have nice south exposed roof and patio. Anyone from around Denver metro area had any luck building solar panels system in a cost efficient way? while browsing the Internet I had come up with Boulder based company - http://www.lumossolar.com/ - anyone dealt with them? Which local contractors have U used for your solar projects?
I would be particularly interested in solar panels covered patio - we were thinking about building some kind of roof for the patio for years, but that might be something that would work.

loki
Posts: 6
Joined: Fri Jul 20, 2012 1:23 pm
Delivery Date: 08 Dec 2012
Leaf Number: 026477
Location: Fort Collins, CO

Re: Colorado

Mon Dec 17, 2012 10:07 am

Viktor wrote:So, I don't have utilities rebate in my part of town, but do have nice south exposed roof and patio. Anyone from around Denver metro area had any luck building solar panels system in a cost efficient way? while browsing the Internet I had come up with Boulder based company - http://www.lumossolar.com/ - anyone dealt with them? Which local contractors have U used for your solar projects?
I would be particularly interested in solar panels covered patio - we were thinking about building some kind of roof for the patio for years, but that might be something that would work.


I had Solar City do a PV installation for me in Fort Collins. I know they are working all over CO. They give you a number of options from purchasing to a 0-down lease. I did a prepaid lease which was most economical. They do a pretty cool workup of your house for a free estimate. PM me if you'd like more details! :)

Viktor
Posts: 112
Joined: Sun Dec 02, 2012 2:56 pm
Delivery Date: 10 Dec 2012
Location: Centennial, CO

Re: Colorado

Mon Dec 17, 2012 11:40 pm

Moving alone with my project - same question again - anyone had any luck buying from the Boulder based company Lumos LSX panels or had them installed?

reeler
Posts: 220
Joined: Tue Aug 17, 2010 1:44 pm

Re: Colorado

Tue Dec 18, 2012 1:27 am

Viktor wrote:Moving alone with my project - same question again - anyone had any luck buying from the Boulder based company Lumos LSX panels or had them installed?


I am looking at doing something similar to have my back porch get sun cover and solar panels at the same time. Here are two other companies with product (the second site may be dead):

http://www.floriansolarproducts.com/canopy.html
http://www.integratedsolardesign.com/

Will Lumos LSX design something custom to fit your patio and do the install?
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