ZEV tax question

[blackbeasst]

i'm in the process of doing my taxes and i'm stumped on one particular part:

"The credit for a new zero emission vehicle is the lesser of 20% of the vehicle cost or $5,000. "

is that 20% of the msrp, the amount after the rebates and whatnot, or the amount of my 3 year lease?

 

[hybridbear]

There is no tax credit if you leased. The tax credit only applies to purchases.

The IRS explains it quite well here.

 

[blackbeasst]

There is no tax credit if you leased. The tax credit only applies to purchases.

The IRS explains it quite well here.

maybe my original post wasn't clear, but this is for state tax credit, not federal

 

[Trey]

I bought an FFE and did not worry about it because 30k x .2 = $6k so I qualified for Georgia's whole $5k rebate. Which state are you in? there may be variances for each state.

 

[blackbeasst]

I'm in Georgia as well. I didn't see anything in the link hybrid posted about state credits.

 

[hybridbear]

Your original post did not specify that you're talking about the GA credit. I thought that was a full rebate and not a credit. The federal program is a tax credit, i.e. you must have sufficient tax liability to claim the credit. California does their state program as a rebate, i.e. no tax liability required. I thought Georgia's program was similar. The wording choice of "credit" or "rebate" can also cause confusion.

 

[Olagon]

While we are on the subject of tax credits, Obama is trying again to increase the federal rebate to $10,000 and make it a rebate everyone can take regardless of tax liability. Hope it passes.

http://www.detroitnews.com/story/business/autos/2015/02/02/white-house-seeks-nearly-triple-nhtsa-defect-budget/22755261/

 

[Olagon]

FFE tax credit blogged about today

http://www.greencarreports.com/news/1096629_irs-electric-car-tax-credits-reporting-discrepancies-remain

 

[blackbeasst]

Interesting info, which shows that lease vehicles apply, but im still stumped on the 20% or $5000 question for my taxes.

http://www.afdc.energy.gov/laws/all?state=GA

Edit: nevermind, I started playing with the numbers and the the amount I got back was $1440 regardless if I put $5000 or $2500. So I went with $2500 which is 20% of my 3 year lease price.