Buying a Leaf out of state - still qualify for state rebate?

[LeafInColorado]

That doesn't invalidate or disagree with what I said, does it? Rebates can (in some cases) affect the cost at the time of the transaction, but income tax credits cannot. You can't even calculate how much tax credit you will receive until the end of your tax year.

Ray

No, you're correct, however the above paragraph refers exclusively to leasing a vehicle in Colorado, not purchasing one outright. If the leasing company factors in the $7,500 as a cap reduction, then wouldn't that mean that the Colorado IMVC rebate would be less for the lessee? (No wordplay intended.)

Thanks guys, yes, this is exactly the thing I need help with. This is a lease situation.

The basic formula is [(cap cost - residual) / cap cost] * IncrementalPriceDifference * .75

Where for the LEAF, per http://boulderhc.com/FYI_Income67.pdf" onclick="window.open(this.href);return false;:
Incremental price difference $13,920.00
Incremental price difference for comparison after FTC $6,420

So here's where it gets a bit odd. The instructions use IncrementalPriceDifference AFTER the 7500 Federal Tax Credit. So it seems to me that we either do

1. Cap Cost factors in FTC, but uses IPD that does not factor in FTC
2. Cap cost does NOT factor in FTC, but uses IPD that DOES factor in FTC

Some more terminology, "Base Cap Cost" does NOT factor in FTC, but "Adjusted Cap Cost" does.

So we have either:
1. [(38000-7500-22000) / 38000] * 13,920 * .75 = 2335
2. [(38000-22000) / 38000] * 6,420 * .75 = 2027

So it's reasonably close, but I'm trying to figure out which is correct. I feel like the correct option is (2), which uses Base Cap Cost (not Adjusted), and uses the Adjusted IPD after factoring in the FTC.

(And none of this factors in about (say) $2500 is dealer discount...)

 

[dgpcolorado]

That doesn't invalidate or disagree with what I said, does it? Rebates can (in some cases) affect the cost at the time of the transaction, but income tax credits cannot. You can't even calculate how much tax credit you will receive until the end of your tax year.
Ray

No, you're correct, however the above paragraph refers exclusively to leasing a vehicle in Colorado, not purchasing one outright. If the leasing company factors in the $7,500 as a cap reduction, then wouldn't that mean that the Colorado IMVC rebate would be less for the lessee? (No wordplay intended.)

Thanks guys, yes, this is exactly the thing I need help with. This is a lease situation.

The basic formula is [(cap cost - residual) / cap cost] * IncrementalPriceDifference * .75

Where for the LEAF, per http://boulderhc.com/FYI_Income67.pdf" onclick="window.open(this.href);return false;:
Incremental price difference $13,920.00
Incremental price difference for comparison after FTC $6,420

So here's where it gets a bit odd. The instructions use IncrementalPriceDifference AFTER the 7500 Federal Tax Credit. So it seems to me that we either do

1. Cap Cost factors in FTC, but uses IPD that does not factor in FTC
2. Cap cost does NOT factor in FTC, but uses IPD that DOES factor in FTC

Some more terminology, "Base Cap Cost" does NOT factor in FTC, but "Adjusted Cap Cost" does.

So we have either:
1. [(38000-7500-22000) / 38000] * 13,920 * .75 = 2335
2. [(38000-22000) / 38000] * 6,420 * .75 = 2027

So it's reasonably close, but I'm trying to figure out which is correct. I feel like the correct option is (2), which uses Base Cap Cost (not Adjusted), and uses the Adjusted IPD after factoring in the FTC.

(And none of this factors in about (say) $2500 is dealer discount...)

I really think that is a question for the DOR. My sense is that they would use option 2 by calculating the purchase tax credit first then adjust it for the capitalized cost of the lease. Technically the FTC is used as part of your down payment for the lease, not a capital cost reduction. Right?

Based on the really crazy way they calculate the IPD (2011 and 2012 models have the same value!) my guess is that they would use some sort of base MSRP or invoice cost not the dealer discounted price. But that's just a guess.

 

[planet4ever]

Rebates can (in some cases) affect the cost at the time of the transaction, but income tax credits cannot.

No, you're correct, however the above paragraph refers exclusively to leasing a vehicle in Colorado, not purchasing one outright. If the leasing company factors in the $7,500 as a cap reduction, then wouldn't that mean that the Colorado IMVC rebate would be less for the lessee? (No wordplay intended.)

Sorry, I had my head screwed on backward. Everything I said above applies only to purchase.

My assumption is that for a lease you should indeed subtract the $7500, but as dpcolorado says, you should get an official statement on that.

Ray