Registration / Title Question, Colorado EV Credit

[Buddhism]

I want to get the Colorado EV Tax credit as I live here. Oregon has a discounted New tesla I want.

To get the Colorado Credit I need to register and title for the first time in Colorado, and not another state. Ive heard in California that they register the car when you buy it.
Is it the Same in Oregon? This page confuses me.

Registering Your Tesla | Tesla Support

Depending on your state, Tesla will either handle titling and registration for you, or process and mail you the documents you’ll need to complete registration at your state’s motor vehicle department.

www.tesla.com

 

[Ostrichsak]

If you buy the car in Colorado and take delivery in Colorado that state tax credit is an instant discount at the point of sale. I believe that if you buy a new vehicle out-of-state and register it in Colorado you can apply for the tax credit on your taxes for this year when you file. I'm not a tax professional so do your own research and talk w/a pro but I believe you can still get it on a new car bought out-of-state via your 2023 tax filing.

 

[a.deodatus]

If you buy the car in Colorado and take delivery in Colorado that state tax credit is an instant discount at the point of sale. I believe that if you buy a new vehicle out-of-state and register it in Colorado you can apply for the tax credit on your taxes for this year when you file. I'm not a tax professional so do your own research and talk w/a pro but I believe you can still get it on a new car bought out-of-state via your 2023 tax filing.

Could you verify the information about the instant discount? Reading the document about the Innovative Motor Vehicle Credit on the colorado.gov website makes me believe that the credit is applied when you next file your taxes, not instantly. However, a tax refund is allowable in excess of the actual state tax you owe.

 

[Ostrichsak]

Could you verify the information about the instant discount? Reading the document about the Innovative Motor Vehicle Credit on the colorado.gov website makes me believe that the credit is applied when you next file your taxes, not instantly. However, a tax refund is allowable in excess of the actual state tax you owe.

This could be correct. I was combining first-hand experience with the new bill but this may not be accurate as that may be a change with the new bill versus the previous state incentive. Previously, the Colorado state tax credit was a point-of-sale discount for most situations. I know because we took delivery of a new 2023 MY earlier this year, before the new bill was signed into law, sadly. At that point, we had an instant discount at the time of sale for $2,500 (it should have been $2,000 for 2023 but I think that Tesla hadn't yet updated their system from 2022 when it was $2,500) that came right off of the top. Since that's how the Colorado EV credit worked previously I assumed it was how it was processed in the new bill too. I could be wrong on that aspect though and it may all be done via tax filing now. I'm fully willing to accept that I was wrong on that point and anyone who knows for sure is welcome to challenge that portion as I won't offer any pushback.

 

[a.deodatus]

This could be correct. I was combining first-hand experience with the new bill but this may not be accurate as that may be a change with the new bill versus the previous state incentive. Previously, the Colorado state tax credit was a point-of-sale discount for most situations. I know because we took delivery of a new 2023 MY earlier this year, before the new bill was signed into law, sadly. At that point, we had an instant discount at the time of sale for $2,500 (it should have been $2,000 for 2023 but I think that Tesla hadn't yet updated their system from 2022 when it was $2,500) that came right off of the top. Since that's how the Colorado EV credit worked previously I assumed it was how it was processed in the new bill too. I could be wrong on that aspect though and it may all be done via tax filing now. I'm fully willing to accept that I was wrong on that point and anyone who knows for sure is welcome to challenge that portion as I won't offer any pushback.

I also got a discount of about $2270 buying a new Model 3 very recently. However, it was a promotional discount, probably to sell more cars. They also did white paint for free VS the $1000 it now costs. I can still file for my $2500 state rebate and $7500 Federal deduction in addition to the price taken off sticker, but not until next April when I file taxes. I'd be curious to see your MVPA/Window Sticker to see the wording for your discount.

 

[Ostrichsak]

I also got a discount of about $2270 buying a new Model 3 very recently. However, it was a promotional discount, probably to sell more cars. They also did white paint for free VS the $1000 it now costs. I can still file for my $2500 state rebate and $7500 Federal deduction in addition to the price taken off sticker, but not until next April when I file taxes. I'd be curious to see your MVPA/Window Sticker to see the wording for your discount.

It's interesting you mention that because now, when I refer to the documents available on my Tesla account, there is no $2,500 discount listed on anything. I know for a fact that there was one the day we bought because I'm that person that reads everything thoroughly before I sign/accept anything.

I knew what all of the figures were save for one single line item that was a $2,500 credit with some cryptic wording associated with it. I forget what it said exactly but I believe Colorado was in there somewhere which lead me to believe that it was the state EV tax credit as this was previously a Point-of-Sale credit for most makes/manufacturers/dealers at that time.

At the time, I considered myself lucky because it went down to $2,000 a month or two earlier at the start of 2023 from the previous $2,500 that it was for 2022 (down from $3,500 I believe it was for 2021 with the height being $5k prior to that which is what it's back up to again as of the middle of this year) and assumed it was just par for the course w/Tesla not being current on it's internal systems and figures.

I can't find any reference of that State of Colorado PoS tax credit on any of my documentation that I have no in my Tesla account. I've examined all of t carefully for the first time since the day I took delivery looking for any mention at all and theres nothing there. I have no problem at all filing for that $2,000 I should have got but don't want to get pinched for attempting to double claim the tax credit. I genuinely don't see it on any of my paperwork now though which is odd because I know for a fact it was referenced the day of delivery.

As with any conversation concerning taxes, seek advice from your trusted tax professional on the topic. It looks like I'll be doing the same on this one once 2023 wraps up.

 

[Foss]

Picked up a new MYP on 7/7. Paid in full with a cashier’s check. No credits applied at time of purchase.

 

[dgpcolorado]

I bought a LEAF in Oregon in 2011 (because they weren't selling them here yet) and had it transported to Colorado. My recollection is that the Oregon dealer charged me Colorado state 2.9% sales tax (no sales tax in OR, of course). I then showed the purchase documents to my county clerk's office and they credited me the amount I had paid in sales tax and issued the title and registration.

I then got the state tax credit when I filed my 2011 tax return in 2012, with the required documentation. Unlike the Federal tax credit, the state tax credit was refundable, so it wasn't dependent on income. I think it is still refundable, but I haven't checked since I'm not in the market for another car.

YMMV.

 

[OldGuy3]

What Foss said, with a purchase on 7/23.

 

[Operator]

Hoping I can take delivery no later than Dec/23. The CO $5k incentive was icing on the cake to the Federal $7500. My issue is come registration, will the state still look at the old MSRP before Tesla dropped all of their pricing in September.

 

[a.deodatus]

Hoping I can take delivery no later than Dec/23. The CO $5k incentive was icing on the cake to the Federal $7500. My issue is come registration, will the state still look at the old MSRP before Tesla dropped all of their pricing in September.

My CPA made me supply the MVPA which showed pricing.

 

[zelikor18]

According to this document CO Tax Credit page 4, it looks like CO residents can apply the $5,000 towards the loan, has anyone done this?

"A purchaser or lessee who obtains financing for the purchase or lease of a qualifying motor vehicle may, by mutual agreement with the financing entity, assign the credit to the financing entity. The assignment must be completed at the time of purchase or lease by executing the required election statement. The financing entity must compensate the motor vehicle purchaser or lessee for the assigned credit."

It goes on to say to fill out form DR 0618 to be completed at time of purchase and that starting 2024, dealers can take the credit at purchase.

Has anyone completed this process with your bank/Tesla? just wondering how it went...would the $5,000 get applied to MSRP and taxes calculated afterwards?

 

[Operator]

My CPA made me supply the MVPA which showed pricing.

I'll be sure to have my paperwork with me. I just hope that's that's what they go off of. That hasn't worked in the past with used vehicles. The DMV still went off their "arbitrary" number vs the actual sale amount.

 

[PNWLeccy]

I'm planning on taking delivery of new M3 in Utah in a few days and driving it back. It showed up in inventory under the "All Deliverable" filter and a sales advisor explained that Utah had an agreement with CO to sell to their residents. I'm worried that picking it up there will exclude me from receiving the $5k CO EV tax credit. I called Tesla support and they said it shouldn't be a problem (of course) but the language in the bill makes me nervous.

Titling and registration requirements

A credit is allowed only for motor vehicles that are titled in Colorado and registered by the purchaser or lessee in Colorado. A temporary registration permit issued by themotor vehicle dealer is not sufficient to satisfy the Colorado registration requirement.

A qualifying motor vehicle may be acquired by the purchaser or lessee outside of Colorado, but it will not qualify for a credit if it has been titled or registered or both in any other state prior to being titled and registered in Colorado.

Source: https://tax.colorado.gov/sites/tax/files/documents/ITT_Innovative_Motor_Vehicle_Credit_Jun_2023.pdf

If Tesla gives me a temporary tag to drive back on, does that count as being "titled or registered" in another state?

 

[Ostrichsak]

No, you're not titling/registering it in Utah.

 

[PNWLeccy]

No, you're not titling/registering it in Utah.

thanks, the language in the bill made me nervous but the fact that it says it can be acquired outside of Colorado and that a temp reg permit is not sufficient means I still qualify.

 

[MOD3LR]

I am following but if I am reading correctly the colorado 5k rebate is like the federal 7500 pos ?

A purchaser or
lessee of a qualifying motor vehicle can assign the credit to
the financing entity or, for purchases or leases on or after
January 1, 2024, to the motor vehicle dealer.