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Colorado- what happens if I buy an EV but don't owe enough in taxes to get the full credit's value?

I'm crazy and actually thinking I might buy two EVs this year. So that's $15,000 federal and $10,000 state tax credits I'd be due. But I don't owe that much in taxes each year.... so I'm worried I'd be losing lots of money doing this. Do either of them roll-over to the next year, or provide a tax refund if you don't owe enough to offset the credit?

Thanks for your help.
 

Barry

Active Member
Aug 9, 2013
1,943
1,621
Colorado
If your CO tax burden isn't enough, you will get a REFUND up to the full credit. This was the case when I applied in 2015. I know there have been some changes (eg., credit dropped from 6K to 5K and no longer applies to resales imported from out of state), so confirm this before you do anything!

For the Federal, you can increase your tax burden by selling appreciated stocks for a realized capital gain, or convert an IRA to a Roth.
 
Last edited:
  • Informative
Reactions: MileHighMotoring
You can also Lease, and give the full credit to the Leasing company. Not sure how Tesla does it, but in 2013 when we got our Nissan Leaf I new we could not use the full Fed tax credit so we Leased from Nissan. They gave us the $7,500 discount and kept the credit themselves.

What about you Tesla owners that lease, how does that work? We purchased Model S, so took the credit ourselves.
 
Looks like for Colorado, it's definitely going to add to my refund if I don't owe enough, as it's just added to the same number as withholding, prepayments, overpayments, etc.. So that's great news. I'm going to play with my 2017 Turbotax file and pretend I bought a vehicle or two this year and see what happens to my refund, theoretically wouldn't change for 2018 taxes I suppose.

Thanks for the replies!
 

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