CO EV Tax Credit question (Income 67)

[Sousaphil]

Hi all, I have a question about the "Income 67" state EV credit of up to $6,000.

Has anyone purchased the vehicle in another state, moved to Colorado, registered it, and been able to get the credit? In reading the documentation, I haven't found anything that says otherwise, but my credit was turned down.

My tax guy (AZ-based) seems to think the best way to get some of the value of the credit is to sell the vehicle in CO, and inform the buyer/dealer that the credit is available on it.

Thoughts?

 

[Mkorpal]

Based on what the law says right now, you should be able to (assuming the car has never been registered in Colorado). That is, however, right now. It appears that they just passed an amendment to the bill that will, among other thing, disqualify any used vehicles. That shouldn't go into effect until next year, so perhaps there was some confusion. Perhaps you can appeal?

 

[MileHighMotoring]

Did you pay sales tax in Colorado for the purchase? Then yes, you can claim it here.

 

[Sousaphil]

Well, I finally spoke to someone at the department of revenue. Because the car was purchased in a year previous to the 2015 tax year, it's not eligible for the refund.

If I sell it in Colorado, the buyer will be eligible for the credit. Hoping I can unlock some of that value upon resale.

 

[Barry]

Sell it to a family member and claim the credit next year.

In case you're not aware, the law was recently changed. Credit drops to $5K and only applies to NEW vehicles, effective 1/1/17.

 

[MileHighMotoring]

Sell it to a family member and claim the credit next year.

Sales tax would negate any savings, and selling cheap to avoid it is a felony.

 

[Barry]

Sales tax would negate any savings, and selling cheap to avoid it is a felony.

You can transfer to a family member and not pay sales tax.

Transfer Vehicle Ownership to Family | Denver County Motor Vehicle Department | DenverGov.org

 

[MileHighMotoring]

Hmm. Would that transfer qualify as a sale for the tax credit though?

 

[Barry]

That's the $6000 question

From what I've read, it's not specified. When DMV charges its yearly fees, they base it on fair market value, to prevent shenanigans with sale price. I would think that also applies to EV credit, but can't be sure. Something for the OP to research with Dept of Revenue...