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Colorado Tax incentive

Discussion in 'Model S: Ordering, Production, Delivery' started by tvcraig, Nov 7, 2016.

  1. tvcraig

    tvcraig Member

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    Hello, I am expected to take delivery in Denver sometime next month. Can someone explain to me exactly how the tax incentive works? I read different amounts online, 5k or 6k? And does the instant rebate only take place after 1/1/17?
    Thanks!
     
  2. Knightowl

    Knightowl Whovian

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    Instant 5k rebates are only from 2017 on yes. For 2016 you get 6k state tax credit not rebate and the federal 7.5k

    Enjoy your awesome new Tesla :)
     
    • Like x 2
  3. tvcraig

    tvcraig Member

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    Thanks. At least I get Superchargers for life buying before 12/31!
     
    • Like x 1
  4. Chaz

    Chaz Big Kahuna

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    Also, after Jan 1st 2017, it no longer applies to leases (if I read it right, lol)
     
  5. gtateco

    gtateco New Member

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    @tvcraig, you still get the $6k if you buy this year, it is just at tax time. The Colorado credit is different than the federal one, so that even if you didn't pay $6k in Colorado state tax in 2016 you still get the credit.

    @Chaz, leases still work but with a reduced amount ($2.5k next year) and it can only be used as a cap cost reduction. You can't choose to get it as a tax credit like you can with a finance. Also, the lease must be at least 2 years.

    The biggest change is the refund no longer works for used cars. People had built a nice little business brining in used Leafs and selling them, which the new bill cuts off.
     
    • Informative x 1
  6. AvengerBB

    AvengerBB Member

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    I plan on ordering at end of year, with delivery Q1 2017. I live in Ohio but take trips to Colorado for business. If I'm interpreting the new "credit" properly I can take delivery in CO to get the credit even though I don't have a tax basis? I do have friends and family that I could use their CO address for registration if that's a requirement.
     
  7. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    The Colorado income tax credit is funded by taxpayers in the state and is intended to benefit taxpayers in the state. If you register your car legally and pay income taxes in Colorado then you should be able to claim the credit. The tax credit is not intended for out-of-state buyers to buy in Colorado and then tax the car elsewhere.
     
  8. AvengerBB

    AvengerBB Member

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    That didn't answer my question. But since you went there, I lived in Colorado for 10 years up until 2 years ago.
     
  9. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    If you still file taxes in Colorado and the car is registered in Colorado then it might be possible you could claim the credit. If you aren't paying taxes in Colorado and the car isn't registered in Colorado then you wouldn't be able to claim the credit.
     
    • Like x 1
  10. SageBrush

    SageBrush Active Member

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    Right, and pay annual registration fees and taxes (the car taxes have their own special name but I think of them as property taxes.)
     
  11. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    I forgot to mention the sales tax specifically as well. That would be required before one could register the newly purchased car here. Sales tax could easily be 8% in some parts of Colorado, wiping out the $5000 - $6000 tax credit 'savings'.
     
  12. redsx8827

    redsx8827 New Member

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    I've got a follow-up question on this. The law allows for dealers to "pass through" the tax credit at the time of the sale. So a dealer can basically offer the $5,000 discount immediately to the customer, and then the dealer receives the credit on its tax statements at year-end. However, does Tesla do this? Or do they require you to go through the normal tax credit process?
     
  13. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    So far, I believe they do not deduct it at the time of sale. We've talked with employees at a couple of the stores in Colorado and they said they didn't know if Tesla would offer this since it would be a change to the way they usually do business (and probably would take too much effort to change things for one state).
     
  14. SageBrush

    SageBrush Active Member

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    I should know the details well since I bought an EV just two months ago, but this is pretty close:

    My locality charged 4% sales tax (I think some areas of the state go as high as 6%)
    2.1% property tax (or whatever they call it) on 85% of new car msrp.
    Assorted fees for crap and plates and whatever -- around $100 IIRC
     
  15. Deans

    Deans Member

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    You are not eligible for the Colorado state tax credit unfortunately. I'm not sure if Ohio has a program or not, but that's what you would be eligible for.
     
  16. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    I just paid my registration and taxes last month. Where I live, the taxes came out to 7.75% or about $7,982.50. The state taxes of $4168 were included in this and paid when I picked up the car. Registration was $1,963.55. I'll get the full $6000 back so that helps offset a large percentage of the taxes paid. I actually calculated everything in advance and was off by about 50 cents from what I was actually charged. The clerk at the DMV was shocked and when she wrote the total down and passed the number to me, I told her that's pretty much exactly what I expected to pay. o_O
     
  17. SageBrush

    SageBrush Active Member

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    #17 SageBrush, Feb 28, 2017
    Last edited: Feb 28, 2017
    Well done :)
    Was your msrp about 104k ?
    Was your car bought in 2016 or 2017 ? I'm pretty sure the tax credit was reduced to $5000 from Jan 1st.
     
  18. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    Yes, $104,200 including docs and delivery. Delivered in December 2016 so I get $6000 state tax credit. Remaining tax and registration paid ~45 days later, once I got the paperwork from Tesla and the temporary tags expired.
     
  19. SageBrush

    SageBrush Active Member

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    I bought my car in December but it was not delivered until January. The state tax authorities have told me to expect a tax credit based on the purchase date. Time will tell.
     
  20. MorrisonHiker

    MorrisonHiker S 90D 2017.34 2448cfc

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    Luckily mine was delivered before the end of the year so there's no question about how much I'll receive or what tax year to claim it in. I don't know how it works with the state tax credit but for the federal tax credit on new cars, the car has to be delivered in the year that you claim the tax credit since it is based on the "placed in service date", not the purchase date. If your car was new, then technically you'd have to claim the federal tax credit on your 2017 return. If it was used, then I guess you wouldn't have to worry about it since there wouldn't be a tax credit.
     

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