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Nice! hopefully a good incentive for some that may not have the tax liability. Wonder if it also will knock down the sales taxes a bit then as well or affect the cost of tabs (not sure how CO handles that)
 

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Nice! hopefully a good incentive for some that may not have the tax liability. Wonder if it also will knock down the sales taxes a bit then as well or affect the cost of tabs (not sure how CO handles that)
In the past, Colorado's tax credit has been fully refundable regardless of tax liability. I would guess that there is no change there. However, I think I read somewhere that the CO EV tax credit is going away for used vehicle purchases??
 

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That is pretty cool. Could you imagine if the Federal Government streamlined the $7,500 rebate the same way? "Yes, I'll take two Bolts to go please. No, no. I'll pay the balance in cash."
 

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Volt buyers sometimes don’t understand they don’t get the entire $7,500 in federal tax credits unless their taxable income is high enough to owe that much or more in taxes. $5,000 sounded to me like a rather high figure for state income taxes, so I looked at a copy of the Colorado income tax form. This form seems to indicate the tax rate for taxable incomes over $50,000 is 4.63% of the Colorado taxable income. One would thus need to have a taxable income of nearly $110,000 to benefit fully from a $5,000 tax credit if applied to the taxes owed (unless the unused state credit can be carried forward until used - I didn’t scan the instructions to check that).

If everyone gets $5,000 by signing away their credit at time of purchase, that makes it sound less like a tax credit reward for car buyers than a windfall to the dealerships and finance companies, paid for by the taxpayers of Colorado.
 

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Volt buyers sometimes don’t understand they don’t get the entire $7,500 in federal tax credits unless their taxable income is high enough to owe that much or more in taxes. $5,000 sounded to me like a rather high figure for state income taxes, so I looked at a copy of the Colorado income tax form. This form seems to indicate the tax rate for taxable incomes over $50,000 is 4.63% of the Colorado taxable income. One would thus need to have a taxable income of nearly $110,000 to benefit fully from a $5,000 tax credit if applied to the taxes owed (unless the unused state credit can be carried forward until used - I didn’t scan the instructions to check that).

If everyone gets $5,000 by signing away their credit at time of purchase, that makes it sound less like a tax credit reward for car buyers than a windfall to the dealerships and finance companies, paid for by the taxpayers of Colorado.
Colorado's alternative fuels tax credit, unlike the federal tax credit, is fully refundable. It is not limited by tax liability.
 

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Now, the Colorado Legislature needs to update the statutes to protect the access to electricity for condominium owners with parking access to general elements only in unassigned parking areas.
 

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Colorado's alternative fuels tax credit, unlike the federal tax credit, is fully refundable. It is not limited by tax liability.
That’s my point. The tax credit is not based on the car buyer’s taxable income. A significant number of residents using this program will be citizens whose taxable state incomes are below $100K, and whose average state income tax bill, it appears, might be around $3K. What dealership would not want to sell a car at MSRP on the paperwork by locating for the buyer a "financial entity" willing to accept the reassigned $5K tax credit and credit $5K to the buyer as a payment on the loan? Many such buyers will likely think it’s a great deal to get $5K off the price they’re paying for the car, ignoring the $3K they’ll still owe in taxes.

But for every 100 cars sold to such citizens, giving a $5K tax credit to the "financial entity" who finances the car instead of an estimated $3K average tax credit to the buyer with a less than six figure income suggests the Colorado taxpayers are giving up $200K in state income tax revenues to encourage banks to make car loans.
 

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That’s my point. The tax credit is not based on the car buyer’s taxable income. ... But for every 100 cars sold to such citizens, giving a $5K tax credit to the "financial entity" who finances the car instead of an estimated $3K average tax credit to the buyer with a less than six figure income suggests the Colorado taxpayers are giving up $200K in state income tax revenues to encourage banks to make car loans.
The Colorado tax credit has *always* been refundable, that's not new. The only change is it takes effect immediately, rather than waiting until you file taxes next year.
 

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The Colorado tax credit has *always* been refundable, that's not new. The only change is it takes effect immediately, rather than waiting until you file taxes next year.
The change is that by assigning your tax credit to the financial entity when arranging a loan, your $5K tax credit morphs into a tax refund. This refund is then applied to the price of the car and the tax credit gets reassigned to the loan company.

You get $5K off the price of any new car or truck on the approved hybrid list, the dealer gets the full price, and the loan company gets a tax credit! Everybody wins!

Then you pay the loan company $150 to process the paperwork, and later repay "up to" $5K of this refund when you pay your taxes. And the loan company takes $5K off their taxes.

Does it benefit Colorado to give the loan company this tax credit if the buyer’s state income tax obligation is not enough to offset it? Isn’t the $5K tax refund to the buyer via the vehicle loan vendor sufficient incentive to increase sales of such vehicles?
 
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