Federal Tax Credit

[vanumala]

Is 2014 Nissan leaf eligible for Federal Tax credit -$7500 and State credit of $2500 from Texas? I am seeing only 2011,2012 and 2013 models in the eligible list in IRS website.
http://www.irs.gov/Businesses/30D-New-Qualified-Plug-in-Electric-Drive-Motor-Vehicles-Nissan-North-America" onclick="window.open(this.href);return false;
Thank you

 

[kubel]

Not sure about Texas, but yes, it's valid for 2014 at the Federal level.

The tax credit is based on the number of vehicles a manufacturer has produced- Nissan probably won't reach that limit for a few more years.

Just be aware this is a tax credit that reduces your tax obligations for this tax year. If government isn't going to take $7500 in taxes from you through the year, you will only qualify for a partial credit. If this describes your current tax situation, you may want to lease instead of buy- since you will receive the full $7500 via cap cost reduction (Nissan calls it "lease cash") regardless of how much uncle sam has indicated he will steal from you.

 

[cgaydos]

In addition to kubel's comment, the reason the 2014 LEAF wasn't listed on that IRS page is that the page lists vehicles valid for credit for the 2013 tax year - and the 2014 LEAF wasn't available then. We can be sure that the 2014 LEAF is still included because Nissan's leases on the 2014 LEAF still include the $7500 tax credit discount.

 

[vanumala]

Thank you all for your valuable replies.

 

[r2k]

Hello,

I recently bought a new Leaf. My tax payments and liability for 2014 should total more than $9000. Should that suffice to claim the full tax credit, or do I need to increase my W-4 exemptions to make sure that my tax liability come April 2015 is greater than $7500?

I am also thinking about installing solar, but am wary of which tax credit takes precedence first, and if the total credit might exceed my tax liability.

 

[mwalsh]

Hello,

I recently bought a new Leaf. My tax payments and liability for 2014 should total more than $9000. Should that suffice to claim the full tax credit, or do I need to increase my W-4 exemptions to make sure that my tax liability come April 2015 is greater than $7500?

I am also thinking about installing solar, but am wary of which tax credit takes precedence first, and if the total credit might exceed my tax liability.

Any balance on the solar tax credit can be rolled over to multiple subsequent tax years, until (IIRC) the law governing it expires in 2016.

Your exemptions don't govern tax liability, just the amount of withholding.

 

[r2k]

Hello,

I recently bought a new Leaf. My taxes due for 2014 should total more than $9000. Should that suffice to claim the full tax credit, or do I need to increase my W-4 exemptions (and hence my balance tax liability come April 2015) greater than $7500?

I am also thinking about installing solar, but am wary of which tax credit takes precedence first, and if the total credit might exceed my tax liability.

Any balance on the solar tax credit can be rolled over to multiple subsequent tax years, until (IIRC) the law governing it expires in 2016.

Your exemptions don't govern tax liability, just the amount of withholding.

I understand about the exemptions, just saying that increasing exemptions decreases fed withholding, thus increasing tax due in April, which would be compensated by the EV tax credit. Can you clarify the bolded part though?

 

[mwalsh]

Hello,

I recently bought a new Leaf. My taxes due for 2014 should total more than $9000. Should that suffice to claim the full tax credit, or do I need to increase my W-4 exemptions (and hence my balance tax liability come April 2015) greater than $7500?

I am also thinking about installing solar, but am wary of which tax credit takes precedence first, and if the total credit might exceed my tax liability.

Any balance on the solar tax credit can be rolled over to multiple subsequent tax years, until (IIRC) the law governing it expires in 2016.

Your exemptions don't govern tax liability, just the amount of withholding.

I understand about the exemptions, just saying that increasing exemptions decreases fed withholding, thus increasing tax due in April, which would be compensated by the EV tax credit. Can you clarify the bolded part though?

Since you've already paid 5 months worth of tax, I would go exempt for the balance of the year, with zero withholding (making no more tax prepayments). Unless there is a compelling reason you want to wait for your own money?