Colorado State Tax Incentive

[CO Proud]

Colorado owners:

I will be ordering my X in the next few days. My understanding of the state (not federal) tax credit is that you receive the credit in the tax year it is registered. So if I buy my X in 2018 but register it in 2019 then I can claim the credit on my 2019 taxes. The State requires proof of registration whereas the bill of sale is sufficient for federal taxes. Anyone else in Colorado have a different experience?

 

[sidmini]

Hi have sent you a PM. I believe it’s date of registration

 

[manitou820]

It's based on date of purchase. You submit a copy of the purchase agreement with your taxes.

Here is a link to the actual law:

https://www.colorado.gov/pacific/sites/default/files/Income69.pdf

"A taxpayer, whether they are a purchaser, lessor, owner of a converted or modified vehicle, or a financing entity, must claim the credit on their income tax return for the tax year that includes the date of purchase, lease, conversion, or modification.

The income tax return on which the credit is claimed must include the following attachments:

• A completed Form DR 0617;
  
  
• A copy of the invoice, purchase agreement, or lease agreement for the qualifying motor vehicle;
  
  
• For financing entities that accept assignment of the credit, a completed Form DR 0618."
  

 

[CO Proud]

agree but what about this line??
"Colorado titling and registration is a requirement for both the innovative motor vehicle and innovative truck credits."

 

[jboy210]

agree but what about this line??
"Colorado titling and registration is a requirement for both the innovative motor vehicle and innovative truck credits."

Sounds just like an extra hoop to jump through to prevent experimental or non-road worthy vehicles from getting the credit.

" must claim the credit on their income tax return for the tax year that includes the date of purchase, lease, conversion, or modification" is pretty clear on which tax year the credit must be claimed.

 

[manitou820]

If you claim the tax credit, you are agreeing that the vehicle will be registered in the state of Colorado. Prevents someone claiming the Colorado tax credit but registering in another state. The only time you would need to show registration is if you were audited.

The tax credit itself is for the tax year the vehicle was purchase. I purchased an EV in December of 2016 and claimed the credit on my 2016 taxes, The vehicle was not registered until roughly February of 2017 when I received the title paperwork.

 

[CO Proud]

If you claim the tax credit, you are agreeing that the vehicle will be registered in the state of Colorado. Prevents someone claiming the Colorado tax credit but registering in another state. The only time you would need to show registration is if you were audited.

The tax credit itself is for the tax year the vehicle was purchase. I purchased an EV in December of 2016 and claimed the credit on my 2016 taxes, The vehicle was not registered until roughly February of 2017 when I received the title paperwork.

Interesting. I purchased a Prius and my husband said Colorado required proof of registration, not the Bill of Sale.

 

[manitou820]

Here is a link to the tax form for the 2017 tax year (2018 forms aren't out yet).

https://www.colorado.gov/pacific/sites/default/files/DR0617.pdf

Page 3, Line 6:

"Date of purchase, lease, or conversion (mm/dd/yyyy):"

Doesn't mention or ask for a registration date.