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Discussion Starter #1
The WA state EV incentive exempts you from paying sales tax on the first $32,000 of the Pacifica. The exemption was set to sunset 7/2019 or after two months after 7,500 registrations.

I just checked the website today and they have updated it showing that the 7,500 cap has been met. If you live in WA and want to buy this (or any car that can go 30 miles on battery) better do it before 5/31.

WA State Licensing (DOL) Official Site: Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions
 

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The WA state EV incentive exempts you from paying sales tax on the first $32,000 of the Pacifica. The exemption was set to sunset 7/2019 or after two months after 7,500 registrations.

I just checked the website today and they have updated it showing that the 7,500 cap has been met. If you live in WA and want to buy this (or any car that can go 30 miles on battery) better do it before 5/31.

WA State Licensing (DOL) Official Site: Alternative Fuel Vehicles and Plug-In Hybrids Washington State Tax Exemptions
Aaaack!!! Thanks for posting this! I'm in WA State. Did you buy yours from there and if so, what dealer did you use? I'm talking to a couple but haven't found one I've decided to stick with yet.
 

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We bought a 2017 from Bud Clary in Auburn off the lot. The 2017 was bought back and we ordered a 2018 from Dick Hannah in Vancouver.

I'd recommend doing a search on Autotrader, there are several dealerships between Portland and Seattle with starting prices of $3-4k off MSRP. I'm willing to be they will be more inclined to sell stock as we get closer to the 5/31 date.
 

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We bought a 2017 from Bud Clary in Auburn off the lot. The 2017 was bought back and we ordered a 2018 from Dick Hannah in Vancouver.

I'd recommend doing a search on Autotrader, there are several dealerships between Portland and Seattle with starting prices of $3-4k off MSRP. I'm willing to be they will be more inclined to sell stock as we get closer to the 5/31 date.
I'm actually discussing a lease with Bud Clary in Auburn right now. Did you at least have a good experience working with them? Going through Costco that's where they referred me. I've read so many people who have purchased their car so far away and that idea sounds so strange to me. Because I get all service done at the dealership I lease a vehicle from (to me it seems like you get better service if you do that), Auburn seems even too far for me (it's about 30 miles from where I live/work). I considered bringing up the tax incentive expiration but am concerned that the dealer will actually be less flexible knowing that there will be a sense of urgency for the buyer.

Re Dick Hannah, when I look at their site all their Limiteds are over $50000...one is even over $53000. That's the highest I think I've seen on any site. Do they start high so when they come down it seems like you are getting a better deal?!
 

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I'm still breaking in our 2018. Got the state sales tax figured out, but what about the Federal? How does one get confirmation from Chrysler? (dealership knows less than i do!)
 

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I'm still breaking in our 2018. Got the state sales tax figured out, but what about the Federal? How does one get confirmation from Chrysler? (dealership knows less than i do!)
I've been wondering this as well and have an email to my accountant to get this figured out. A dealer told me it only applies to purchases, but the forms seem to indicate a lease or purchase. When you file taxes for that year, there's an additional form that needs to be completed and filed. The way I understand it is that you would you need to owe at least $7,500 to get the full tax credit. So this means you'd need to make sure to underpay during the year. This concerns me a little because I worry that I would end up owing and then the government decides to change something during the year and I end up not getting the credit, but get a tax bill. $7,500 is a lot of money but at this point I'm not really counting on it, especially since I'm going to lease. At this point, I'm focusing on getting the WA sales tax credit.

https://www.chrysler.com/pacifica/incentives/hybrid-incentives.html
 

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Discussion Starter #7
I've been wondering this as well and have an email to my accountant to get this figured out. A dealer told me it only applies to purchases, but the forms seem to indicate a lease or purchase. When you file taxes for that year, there's an additional form that needs to be completed and filed. The way I understand it is that you would you need to owe at least $7,500 to get the full tax credit. So this means you'd need to make sure to underpay during the year. This concerns me a little because I worry that I would end up owing and then the government decides to change something during the year and I end up not getting the credit, but get a tax bill. $7,500 is a lot of money but at this point I'm not really counting on it, especially since I'm going to lease. At this point, I'm focusing on getting the WA sales tax credit.

https://www.chrysler.com/pacifica/incentives/hybrid-incentives.html
Federal Credit:

If you buy the van then you claim the $7,500 non-refundable credit. If you lease then the leasing company is buying the van and they claim the credit. Depending on the leasing company/manufacture they pass the savings but in Chrysler's case it sounds like they don't.

There are many threads about the credit for buying and leasing.
 

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I'm actually discussing a lease with Bud Clary in Auburn right now. Did you at least have a good experience working with them? Going through Costco that's where they referred me. I've read so many people who have purchased their car so far away and that idea sounds so strange to me. Because I get all service done at the dealership I lease a vehicle from (to me it seems like you get better service if you do that), Auburn seems even too far for me (it's about 30 miles from where I live/work). I considered bringing up the tax incentive expiration but am concerned that the dealer will actually be less flexible knowing that there will be a sense of urgency for the buyer.

Re Dick Hannah, when I look at their site all their Limiteds are over $50000...one is even over $53000. That's the highest I think I've seen on any site. Do they start high so when they come down it seems like you are getting a better deal?!
When I bought the 2017 for BC Auburn they had the only two hybrids within a 200 mile radius of Portland so there wasn't much room for negotiation. I was able to get them down $500 off MRSP which at the time was just about as good as anyone was getting. My experience was good enough but for a cash purchase with no trade in I was still at the dealer for 3-4 hours. A couple months ago they did have a few listed for $3k under MSRP.

I don't recommend buying from Dick Hannah. We ordered ours for %800 under MSRP and now they are charging thousands over MRSP - which they could have gotten away with in the early days but not now. This is why they have 5 on the lot. There are two dealers in Portland for $4k under MSRP.
 

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Thank you! That link is awesome... I can start putting the pieces together for next year's taxes. You're right, not a comfortable position to be in. These tax exemptions/rebates are a lot of money. And, frankly, the tipping point in buying the PHEV Pacifica instead of the Sienna. I still plan on reaching out to Chrysler - "The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle." Once this topic came up, our dealer/sales team were useless. Two of my least favorite things - buying cars and doing taxes!
Thanks again.
 

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When I bought the 2017 for BC Auburn they had the only two hybrids within a 200 mile radius of Portland so there wasn't much room for negotiation. I was able to get them down $500 off MRSP which at the time was just about as good as anyone was getting. My experience was good enough but for a cash purchase with no trade in I was still at the dealer for 3-4 hours. A couple months ago they did have a few listed for $3k under MSRP.

I don't recommend buying from Dick Hannah. We ordered ours for %800 under MSRP and now they are charging thousands over MRSP - which they could have gotten away with in the early days but not now. This is why they have 5 on the lot. There are two dealers in Portland for $4k under MSRP.
I have a trade-in (lease with time still left) so I'm trying to get the most out of that. I don't want to put much $$ down so in addition to a good price on the van, I need a good value on my trade in. I'm trying to do as much via email as possible so I don't spend too much time at the dealer, though I know that's inevitable. I haven't even driven one yet! BC has already spent time looking around the area for what I want, and did find one, but I'm not going to buy it without driving it so that probably means either they'll need to get it delivered to them first or I can test drive it at the other lot.

Have you dealt with the service department at BC yet, either for routine maintenance or something else?
 

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Thank you! That link is awesome... I can start putting the pieces together for next year's taxes. You're right, not a comfortable position to be in. These tax exemptions/rebates are a lot of money. And, frankly, the tipping point in buying the PHEV Pacifica instead of the Sienna. I still plan on reaching out to Chrysler - "The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle." Once this topic came up, our dealer/sales team were useless. Two of my least favorite things - buying cars and doing taxes!
Thanks again.
To me, the documents in the link don't necessarily sync up with what I'm hearing in these threads and from the dealer. But the way it's advertised so prominently on the Chrysler website you would think the dealers would know if/how it can be applied. I'm interested to hear back when you get in touch with Chrysler so hopefully you can report back. :)
 

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Thank you! That link is awesome... I can start putting the pieces together for next year's taxes. You're right, not a comfortable position to be in. These tax exemptions/rebates are a lot of money. And, frankly, the tipping point in buying the PHEV Pacifica instead of the Sienna. I still plan on reaching out to Chrysler - "The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle." Once this topic came up, our dealer/sales team were useless. Two of my least favorite things - buying cars and doing taxes!
Thanks again.
I found out more through the Facebook Pacific PZEV page. The $7,500 tax credit goes towards your total amount due for the year, so whatever amount is on line 47 on your 1040, you would subtract $7,500 from that. If you didn't owe that much, then you'll get back whatever the difference is. Or you may end up overpaying (once the credit is applied) and get a credit that way. There is a separate form (#8936) that you fill out. I thought that the $7,500 would apply to anything that you would owe at the end of the year (not what you've already paid). That's where I was confused.
 

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Absolutely, I will share what I find out. So far, I have the four pieces to share with my tax person; Bill of sale, completed form 8936, and the letters (2) from Chrysler (in the link you sent yesterday). The Chrysler letters, one for WA and the other for Federal, should "acknowledge the certification of the vehicle." Fingers crossed!

Still wrapping my head around that $7,500. I heard the same thing - credit is applied to what you owe/burden for the entire year. Not sure about getting anything back if I owe less than $7,500 for 2018. Ugh.
 

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Still wrapping my head around that $7,500. I heard the same thing - credit is applied to what you owe/burden for the entire year. Not sure about getting anything back if I owe less than $7,500 for 2018. Ugh.
I'm not really sure either. This article says you can only get credit for what you owe in the same tax year you purchased the vehicle, so if you owe $3000, that's your credit. You're not going to get a $4500 check from the government for the difference. https://cars.usnews.com/cars-trucks/how-does-the-electric-car-tax-credit-work
 

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I'm a WA resident and considering a Pacifica Hybrid. Do you know if this means that I would have to wait until Aug. 1st to buy the car to get the sales tax credit? Unfortunately we have a road trip coming up and we don't want to wait that long, and that's real money!
 

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Discussion Starter #17
Yes, you'd have to wait until after 8/1/19 to have the first $25k sales tax exempt assuming your pursuance price is under $45k.

Maybe you can use this to get the dealer to bring the price down close to what that tax savings would be for you. I'm guessing they wont be selling as many before 8/1 due to this.
 
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