Buying a Leaf out of state - still qualify for state rebate?

[wantonsoup]

Just curious - I think I just have to put the VIN, purchase date, price, etc., on my taxes to get the rebate. But figured it was better to double check. If I buy a Leaf out of state, I do still qualify for the state rebate (Colorado), correct?

 

[planet4ever]

I'm sure it varies by state, but that wouldn't work in California. To get, and keep, the rebate you have to register the car in CA and keep it registered there for three years.

Also, rebates have nothing to do with income taxes. Credits, like the federal $7500, are taken against your tax, but rebates are paid by check.

Ray

 

[wantonsoup]

I'm talking about buying it say in CA but registering it CO where I live. And I used the word rebate - it is indeed a tax credit here.

 

[dgpcolorado]

Yes, buying out-of-state works fine for the Colorado tax credit. The credit will be $4815 for 2012 (thanks to some suspect calculations by the DOR; the Volt gets the full $6000 and it isn't even all-electric). You will need to supply the VIN, where you bought it, a copy of the invoice, and a copy of the Colorado registration.

Unlike the federal tax credit, the Colorado one is refundable (the excess, if any, over taxes owed will be refunded to you).

For information about how the DOR calculates the tax credit see FYI Income 67, Innovative Motor Vehicle Credit. If you would like to read the actual Colorado statute, it is CRS 39-22-516.5 Note that the tax credit for leased vehicles is adjusted by the capitalized cost.

One of several threads on the Colorado tax credit: Can anyone explain the Colorado state tax credit for EVs?

 

[redLEAF]

Wow, pretty generous ... wouldn't be available in IL (has to be bought from an in-state dealer and NO leases) and it's limited to 10% of MSRP up to $4K; kudos to Colorado

 

[wantonsoup]

The credit will be $4815 for 2012

Wow, total BS. A 6 year old hybrid gets $2,800.

Out of curiosity, do you know when this credit came about? I bought a hybrid in 2007. Was it available then?

 

[dgpcolorado]

The credit will be $4815 for 2012

Wow, total BS. A 6 year old hybrid gets $2,800.

Out of curiosity, do you know when this credit came about? I bought a hybrid in 2007. Was it available then?

No, I don't know when the various laws were passed but for 2012 through 2015 (I think) it is a new law. Last year was covered under an older law and my tax credit was about $5400. The hybrid you mention would have been under an even older law, now expired.

One thing to look at though, is that the hybrid tax credits phase out pretty quickly but the EV credit does not IIRC.

Yes, it is aggravating how the DOR calculates the credit for the LEAF. I provided documentation with my tax return in April showing how and why the credit should be $6000 but the DOR blew it off. They give the same credit to both 2011 and 2012 model LEAFs even though the prices are very different. They won't say what car they use for the "Incremental Price Difference" calculation. In short they refuse to show the basis of their calculations. If I lived closer to Denver I'd have fought it. It really irritates that the hybrid Volt gets the full credit while the all electric LEAF does not. But $4815 is better than most people in other states get; at least Colorado is trying to support "innovative motor vehicles".

 

[wantonsoup]

The hybrid you mention would have been under an even older law, now expired.

Surprisingly, according to the current FYI document... it's not. Every used hybrid still applies for a tax credit , as they still qualify (used cars).2007 Mercury Mariner: = $1,466. 2006 Lexus RX 400h = $2,228. 2000 Honda Insigh = $2,184. etc.

 

[Vlad92]

Boy do I live in the wrong state. Our version of a state tax credit is making you pay an extra $75 a year at registration for the alternative fuel tax (for not paying your fair share of gas tax)!!!

 

[dgpcolorado]

Boy do I live in the wrong state. Our version of a state tax credit is making you pay an extra $75 a year at registration for the alternative fuel tax (for not paying your fair share of gas tax)!!!

Colorado and Nebraska may be adjacent geographically but they are worlds apart in many other ways. As you know!

 

[reeler]

I bought a Leaf at Fontana Nissan in CA and received the CO tax credit. Don't have it titled in CA first, which is a little difficult, but the dealers should know how to do it.

 

[wantonsoup]

I bought a Leaf at Fontana Nissan in CA and received the CO tax credit. Don't have it titled in CA first, which is a little difficult, but the dealers should know how to do it.

Perfect, exactly what I needed to know. THANKS!

 

[Deleted member 7130]

Hello all:

Long time reader, first time poster. I live in Colorado and want an EV. The Colorado DOR FYI #67 was published in February 2012 and has since been removed from the state's website because of -- I imagine -- the passage of House Bill 12-1299: http://www.leg.state.co.us/clics/cl...107ADD8725799700807F34?open&file=1299_enr.pdf The Gov signed it in April.

While I wait for a new FAQ from the state, can anybody interpret if this changes how lessees claim the Innovative Motor Vehicle Credit?

Thanks,
-Phil

 

[dgpcolorado]

Hello all:

Long time reader, first time poster. I live in Colorado and want an EV. The Colorado DOR FYI #67 was published in February 2012 and has since been removed from the state's website because of -- I imagine -- the passage of House Bill 12-1299: http://www.leg.state.co.us/clics/cl...107ADD8725799700807F34?open&file=1299_enr.pdf The Gov signed it in April.

While I wait for a new FAQ from the state, can anybody interpret if this changes how lessees claim the Innovative Motor Vehicle Credit?

Thanks,
-Phil

As near as I can tell the bill just clarifies that lessees are eligible for the tax credit and that lessors are not (unlike with the federal tax credit). My guess is that the calculation of the credit, based on capitalized cost of the vehicle, will not change.

 

[Deleted member 7130]

Hello all:

Long time reader, first time poster. I live in Colorado and want an EV. The Colorado DOR FYI #67 was published in February 2012 and has since been removed from the state's website because of -- I imagine -- the passage of House Bill 12-1299: http://www.leg.state.co.us/clics/cl...107ADD8725799700807F34?open&file=1299_enr.pdf The Gov signed it in April.

While I wait for a new FAQ from the state, can anybody interpret if this changes how lessees claim the Innovative Motor Vehicle Credit?

Thanks,
-Phil

As near as I can tell the bill just clarifies that lessees are eligible for the tax credit and that lessors are not (unlike with the federal tax credit). My guess is that the calculation of the credit, based on capitalized cost of the vehicle, will not change.

I wonder if the DOR will still require the lessor to put it in writing that the lessee is taking the credit?

 

[LeafInColorado]

I'm in the exact same situation. Just leased an SL.

I can't figure out what numbers to use as the basis for the cost - I know I have to subtract the residual, but I can't figure out whether or not to subtract out the federal rebate. So is it approx 35K vs 21K residual, and you use that percentage, or (35K - 7500) vs. 21K residual and use that?

I read the amendment above, and agree it clarifies that we (leasees) get the State credit.

I actually just yesterday emailed Nissan asking them to put in writing that they pass the right to claim the credit on to me. So far no response, but it's only been a day. The dealer is looped in as well.

This seems smart. This should be legislated - and it makes sense to establish this fact instead of requiring it in each case in writing.

 

[planet4ever]

I know I have to subtract the residual, but I can't figure out whether or not to subtract out the federal rebate.

The federal "rebate" is not a rebate, but a tax credit. It has nothing to do with the cost basis of the car, only with how much income tax you owe for the year. You don't subtract anything from the cost basis for the tax credit, and you don't get any credit from it now, only later.

Ray

 

[Deleted member 7130]

I know I have to subtract the residual, but I can't figure out whether or not to subtract out the federal rebate.

The federal "rebate" is not a rebate, but a tax credit. It has nothing to do with the cost basis of the car, only with how much income tax you owe for the year. You don't subtract anything from the cost basis for the tax credit, and you don't get any credit from it now, only later.

Ray

I believe LeafInColorado is referring to the language of the 2/12 revision of CO DOR FYI Income #67 which reads:

"The available credit is calculated by subtracting the value of the vehicle when the lease expires from the cost of the vehicle to the lessor at the time of the lease transaction (capitalized cost), and dividing that amount by the cost of the vehicle to the lessor at the time of the lease transaction. This percentage is then multiplied by the qualifying expenses to determine the amount of the expenditure that can be used in computing the amount of the credit."

 

[planet4ever]

I know I have to subtract the residual, but I can't figure out whether or not to subtract out the federal rebate.

The federal "rebate" is not a rebate, but a tax credit. It has nothing to do with the cost basis of the car, only with how much income tax you owe for the year.

I believe LeafInColorado is referring to the language of the 2/12 revision of CO DOR FYI Income #67 which reads:

"The available credit is calculated by subtracting the value of the vehicle when the lease expires from the cost of the vehicle to the lessor at the time of the lease transaction (capitalized cost), and dividing that amount by the cost of the vehicle to the lessor at the time of the lease transaction."

That doesn't invalidate or disagree with what I said, does it? Rebates can (in some cases) affect the cost at the time of the transaction, but income tax credits cannot. You can't even calculate how much tax credit you will receive until the end of your tax year.

Ray

 

[Deleted member 7130]

That doesn't invalidate or disagree with what I said, does it? Rebates can (in some cases) affect the cost at the time of the transaction, but income tax credits cannot. You can't even calculate how much tax credit you will receive until the end of your tax year.

Ray

No, you're correct, however the above paragraph refers exclusively to leasing a vehicle in Colorado, not purchasing one outright. If the leasing company factors in the $7,500 as a cap reduction, then wouldn't that mean that the Colorado IMVC rebate would be less for the lessee? (No wordplay intended.)