Colorado passes bill granting $5000 tax incentive that can be immediately realized
64 replies, posted
[QUOTE]
Colorado official passed its bill HB 1332 to update its electric vehicle incentive program.
...
The Southwest Energy Efficiency Project (SWEEP) on the new program:
[QUOTE]It simplifies a complex formula, setting a flat $5,000 credit for the purchase of a light duty electric vehicle (EV). Most importantly, it makes the credits assignable to a car dealer or finance company, which will effectively turn them into a point of sale incentive. This makes the Colorado incentive the best in the nation, combining one of the highest tax credits with a point of sale option, and is expected to significantly increase EV sales. SWEEP proposed the concept of assignable tax credits and helped build broad support for the legislation.[/QUOTE]
[/QUOTE]
[URL="http://electrek.co/2016/05/16/colorado-officially-approves-5000-tax-credit-for-electric-vehicles-up-to-12500-with-federal-incentive/"]Source[/URL]
Combined with the $7500 federal tax incentive that's pretty good, if you make enough to pay that much tax.
so if you buy a model 3 in colorado you pay like $18k for a new tesla car instead of $30k
wow
Legalized marijuana overprofit is a hell of a drug.
[QUOTE=Wii60;50334522]so if you buy a model 3 in colorado you pay like $18k for a new tesla car instead of $30k
wow[/QUOTE]
Um no not really, the 30k price is adjusted for the tax credit, it's really a 37.5k car
You are still buying a very expensive car for 25k though which is significant
[QUOTE=Sableye;50334531]Um no not really, the 30k price is adjusted for the tax credit, it's really a 37.5k car
You are still buying a very expensive car for 25k though which is significant[/QUOTE]
It's $35k without incentives, it's GM's Bolt that is being advertised as $30k but is actually $37.5k.
[editline]17th May 2016[/editline]
You probably also need to be bringing a significant amount of income in to be paying $5000 state tax and $7500 federal tax. Perhaps someone more familiar with the local taxes can state exactly how much you would need to be making.
[editline]17th May 2016[/editline]
I guess since you can assign it though you could just assign it to Tesla (or your dealership for other brands) or your finance entity and just have them deduct the amount outright for you, rather than claiming it yourself on your state tax returns.. if I understand how it works.
More countries & american states should legalize marijuana
[QUOTE=Morgen;50334544]
I guess since you can assign it though you could just assign it to Tesla (or your dealership for other brands) or your finance entity and just have them deduct the amount outright for you, rather than claiming it yourself on your state tax returns.. if I understand how it works.[/QUOTE]
i think thats the point, when you get the sticker price, they can just deduct that $5,000 from it with a little * underneath
[QUOTE=SweetTea;50334801]More countries & american states should legalize marijuana[/QUOTE]
Bunch of states are gonna have it on the ballot this november.
Flat tax 4.63% in CO
Youd have to make $108k and that's after any other deductions such as retirement accounts
[QUOTE=POLOPOZOZO;50335594]Flat tax 4.63% in CO
Youd have to make $108k and that's after any other deductions such as retirement accounts[/QUOTE]
So, basically, it's the middle class subsidizing the rich to buy electric cars.
[QUOTE=SpaceGhost;50335305]Bunch of states are gonna have it on the ballot this november.[/QUOTE]
and a majority of them will fail
[QUOTE=sgman91;50335627]So, basically, it's the middle class subsidizing the rich to buy electric cars.[/QUOTE]
$108k is not rich.
[QUOTE=sgman91;50335627]So, basically, it's the middle class subsidizing the rich to buy electric cars.[/QUOTE]
Household income in the six figures is still middle class, especially considering the cost of living in some areas of colorado
but yes tesla is still a luxury brand
[QUOTE=geel9;50335946]$108k is not rich.[/QUOTE]
$108k a year is rich lol
[QUOTE=MissZoey;50336166]$108k a year is rich lol[/QUOTE]
depends where you are - your buying power. But yeah, more than my household for sure.
[QUOTE=MissZoey;50336166]$108k a year is rich lol[/QUOTE]
It's really not as much money as you think. What is "rich" to you?
[QUOTE=geel9;50335946]$108k is not rich.[/QUOTE]
That is twice what the average American makes. That is rich.
[editline]17th May 2016[/editline]
The upper fourth quintile of income in the US is 100k a year. Anything above that is the final quintile.
[QUOTE=ForgottenKane;50336200]That is twice what the average American makes. That is rich.[/QUOTE]
Again, what is "rich" to you? What do you think someone who is rich can do?
[QUOTE=geel9;50336213]Again, what is "rich" to you? What do you think someone who is rich can do?[/QUOTE]
Twice the average American income is most definitely rich.
[QUOTE=Map in a box;50336248]Twice the average American income is most definitely rich.[/QUOTE]
It's really not. Someone making $250,000 a year still stresses out about a mortgage, car payments, etc.
You're worrying about people who make 2x the average income versus people who make literally hundreds and thousands of times more. There's a huge, huge disparity. $100-200k is WAY, WAY closer to $50k than to anyone with a powerful amount of money.
It's assignable to your finance company or car dealer though, so they can give you a reduced price straight up if you give them the credit.
[QUOTE=geel9;50336256]It's really not. Someone making $250,000 a year still stresses out about a mortgage, car payments, etc.[/QUOTE]
If they suck at managing money, sure.
If I was bringing in quarter of a million every year, I could retire in less than a decade.
[QUOTE=MissZoey;50336166]$108k a year is rich lol[/QUOTE]
My brother-in-law is an electrician at a manufacturing factory. He's got a two year college degree from a cheap community college. He makes $84,000 a year with five years experience at the job. His wife, my sister, works at a local university in their administration. She makes $34,000 a year. Combined they make 118k a year before taxes. They are decidedly middle class, with a small ranch house in a cheap town in Indiana, driving used cars and have four kids. $108k a year is not rich. I wouldn't consider someone rich (in comparison to the average american) until they are making well over $200k a year.
[QUOTE=Morgen;50334514]Combined with the $7500 federal tax incentive that's pretty good, [B]if you make enough to pay that much tax.[/B][/QUOTE]
If being the operative word.
A lot of people on facepunch seem to genuinely have no idea how taxes work. Most people have at least something in deductions, but 1099 contractors and small business owners in particular frequently have gargantuan deductions. It's not all all uncommon for them to write off 30-50% of their gross income because of things like depreciation. That can easily push the benefits of these tax credits well into the 150-200k a year range.
The problem with state refunds is that they encourage abuse. The federal one doesn't really have this problem, but state ones allow wealthy people to setup a proxy of some sort, register a luxury vehicle in a state without sales tax/and or better incentives, at which point they can sit on it for a while before moving it, and re-registering it in another state ultimately winding up with them entirely avoiding paying sales taxes on it. Sometimes this means that they don't get to drive the car for a month or two, but that's a relatively minor annoyance for someone who's planning things out ahead of time. For something like a Model S/X, could cost them under 2000 dollars to save [i]easily[/i] 10,000 or more.
It would be better if they wrote it up as a tax refund (or even a credit), but split it over multiple years. This would solve multiple problems. By splitting up the rebate/credit into smaller chunks, you not only make it more beneficial to lower income groups, but you can easily prevent a good chunk of abuse, and you encourage people to keep the vehicles for years.
[QUOTE=MissZoey;50336166]$108k a year is rich lol[/QUOTE]
Not in Denver, where rent for a one bedroom starts at around $1500 (and continues to skyrocket outside of Denver as new light rail projects start progress.)
Source: My girlfriend and I make about $100k combined and still barely scrape by on bills. Don't know how poorer folks do it.
[QUOTE=Protocol7;50338137]Not in Denver, where rent for a one bedroom starts at around $1500 (and continues to skyrocket outside of Denver as new light rail projects start progress.)
Source: My girlfriend and I make about $100k combined and still barely scrape by on bills. Don't know how poorer folks do it.[/QUOTE]
That's just short of a mortgage payment on a 3br 2ba split level home where I am. But we have some of the highest household incomes outside of the east coast
[QUOTE=Code3Response;50338217]That's just short of a mortgage payment on a 3br 2ba split level home where I am. But we have some of the highest household incomes outside of the east coast[/QUOTE]
In all fairness though, rent doesn't just cover the mortgage. It covers property taxes, and ongoing maintenance to the house. It is frequently cheaper to own a house than to rent, but the price differences are very rarely that extreme. Location matters a lot more than rent vs own.
[QUOTE=Zephyrs;50338271]In all fairness though, rent doesn't just cover the mortgage. It covers property taxes, and ongoing maintenance to the house. It is frequently cheaper to own a house than to rent, but the price differences are very rarely that extreme. Location matters a lot more than rent vs own.[/QUOTE]
Houses also generally have much higher utility costs.
Straight rent vs mortgage is generally favorable towards mortgages but in reality the total monthly costs of the home aren't too vastly different.
[QUOTE=Zephyrs;50338114]If being the operative word.
A lot of people on facepunch seem to genuinely have no idea how taxes work. Most people have at least something in deductions, but 1099 contractors and small business owners in particular frequently have gargantuan deductions. It's not all all uncommon for them to write off 30-50% of their gross income because of things like depreciation. That can easily push the benefits of these tax credits well into the 150-200k a year range.
The problem with state refunds is that they encourage abuse. The federal one doesn't really have this problem, but state ones allow wealthy people to setup a proxy of some sort, register a luxury vehicle in a state without sales tax/and or better incentives, at which point they can sit on it for a while before moving it, and re-registering it in another state ultimately winding up with them entirely avoiding paying sales taxes on it. Sometimes this means that they don't get to drive the car for a month or two, but that's a relatively minor annoyance for someone who's planning things out ahead of time. For something like a Model S/X, could cost them under 2000 dollars to save [i]easily[/i] 10,000 or more.
It would be better if they wrote it up as a tax refund (or even a credit), but split it over multiple years. This would solve multiple problems. By splitting up the rebate/credit into smaller chunks, you not only make it more beneficial to lower income groups, but you can easily prevent a good chunk of abuse, and you encourage people to keep the vehicles for years.[/QUOTE]
Don't most states have a "use" tax that covers buying things out of state? I'm sure it's possible to abuse but that goes for just about any tax differences between the states.
I don't think the way Colorado have implemented this state tax incentive is bad since it allows you to assign it to your car dealer, so they can discount that for you. I would think low income groups would prefer $5k now over $5k over several years? It would be nice if the federal tax incentive was done in a similar way so that poorer people didn't get less of an incentive than rich people.
[QUOTE=ForgottenKane;50336200]That is twice what the average American makes. That is rich.
[editline]17th May 2016[/editline]
The upper fourth quintile of income in the US is 100k a year. Anything above that is the final quintile.[/QUOTE]
What do you consider middle class then?
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