[hitsquad64]

It is refundable, as is my understanding. Meaning you do not need to have tax liability more than the rebate like you do for fed credit. I had to stop all fed withholding (claim 10 dependents on W4) in order to get enough liability by the end of the year to get max credit. Rules changed starting in 2017 to make CO credit a flat $5000 rebate for qualified vehicles. It can also be assignable, allowing dealer to take it off the purchase price and they collect it for you. Check address below.

colorado.gov/pacific/sites/default/files/Income69.pdf

 

[snorth]

You're incorrect about the fed credit. It's about how much tax you owe, not what your final liability is. If you do your taxes and are going to get a refund, and then are like "oh crap, I forgot to claim the $7500 credit", you can still get the full $7500, assuming your taxes paid throughout the year were high enough.

 

[hitsquad64]

Thanks snorth, that may be more correct. I asked my tax guy and he said that these different credits (child, education, etc) are compiled with different rules, and some are offset and some are cumulative. That being said, I believe it is correct to say that if you had a tax debt throughout the year of $7500 plus other deductions (which may adjust your taxable income lower) you would have a sufficient tax debt to claim the full credit. It wouldn't matter if you paid throughout the year via payroll withholding since that is just there to prepay your end of year debt. I stopped my withholding so I can use it for the first 7 months of car payments! Thanks for the clarification.

 

[snorth]

Some people have reduced their withholding as a way to get the $7500 early, kind of like an advance on their expected refund. Just be sure to calculate this carefully, and don't forget to increase them again as soon as the new year begins!

 

[shikataganai]

I think it is refundable, but this is only specified in Income 67:

https://www.colorado.gov/pacific/sites/default/files/Income67.pdf

Income 69 does refer to 67, though, and doesn't stipulate otherwise with regard to it being refundable.

Please see FYI Income 67 and FYI Income 68 for information regarding the innovative motor vehicle credit and innovative truck credit, respectively, for tax years prior to 2017.

 

[dotbot]

Yes, for the Fed, you need to owe at least 7500 in taxes to get full benefit. For CO, you get the money regardless of liabilities.

I just purchased a PacHy this week, and the Chrysler dealer here in CO did not agree to accept the 5K EV credit dealer transfer. This was odd, as I bought a Leaf last year and they had no problem taking the credit and knocking $5k off the purchase price. On pressing the issue, they recognized there was nothing legally preventing them, but that it was a Chrysler policy not to. Which is too bad. I'm going to completely stop withholding my state taxes, but I'll likely still end up getting a state refund in March next year. Not that I'll complain too much, since it's still eventually $5k off.

Has anyone had a different experience and get the $5k off at purchase?

Side note: It doesn't seem like there's much interest in PacHy's here in CO as I would think. They're an insane bargain at $12,500 off (plus normal negotiated discounts). But it's like most people don't even know about it!