Rebates and Credits

[modimum]

Hi all,

So I'm still very much in the exploratory stages here, and am looking at the incentives. Beyond zero emissions, which is, well, huge.

I see a lot of talk about how the IRS $7.5k rebate just means a credit against your taxes. Yet the rebate definition suggests otherwise:

"Generally speaking, tax credits only offset tax balances due - meaning if you have low income and owe nothing in tax, you get no benefit from a credit. Whereas, tax rebates are paid to a taxpayer regardless whether a tax is payable."

So. Is it a rebate or a credit?

I am in GA where we also have a $5k tax credit as well as a 10% credit on the fast charge station.

We're self employed, and generally pay a fairly substantial tax bill every year, certainly in excess of the rebate/credit amounts.

Am I correct in thinking that, provided we file early (1.1.12) to make sure the pot is not exhausted we would qualify for a reduction in our tax bill of $5,000 + 10% of charge station cost (which looks to be around $2k) from the state tax credit and what from the IRS?

Thanks much.

 

[jcesare]

Hi all,

So I'm still very much in the exploratory stages here, and am looking at the incentives. Beyond zero emissions, which is, well, huge.

I see a lot of talk about how the IRS $7.5k rebate just means a credit against your taxes. Yet the rebate definition suggests otherwise:

"Generally speaking, tax credits only offset tax balances due - meaning if you have low income and owe nothing in tax, you get no benefit from a credit. Whereas, tax rebates are paid to a taxpayer regardless whether a tax is payable."

So. Is it a rebate or a credit?

I am in GA where we also have a $5k tax credit as well as a 10% credit on the fast charge station.

We're self employed, and generally pay a fairly substantial tax bill every year, certainly in excess of the rebate/credit amounts.

Am I correct in thinking that, provided we file early (1.1.12) to make sure the pot is not exhausted we would qualify for a reduction in our tax bill of $5,000 + 10% of charge station cost (which looks to be around $2k) from the state tax credit and what from the IRS?

Thanks much.

It is a tax credit.
There is currently a bill trying to pass through committee in the Senate to make it a rebate.

As far as it running out, the current federal law is based on manufacturer and covers the first 200,000 plug in vehicles per manufacturer. Nissan is not going to sell 200,000 vehicles for a while

 

[charlie1300]

This has been extensively discussed on this forum; I would recommend the last four pages of this thread:

http://www.mynissanleaf.com/viewtopic.php?f=4&t=283&start=0

Happy reading

 

[RevBrent]

Something that you will have to be very careful about, however, is that the EV Federal Tax Credit only applies to Federal Tax and not to Self Employment taxes. I am self employed as well and that was the information that I received today.

 

[modimum]

thanks for the answers, all very useful.


interesting on the self employed tax distinction, I need to check with the tax guy since it's not my area of expertise.

seems though that a lease might make more sense.

thanks again, and sorry for rehashing an old topic. I saw so much talk about rebate and what that meant, when "rebate" means money back. will keep an eye on the Senate and see how this goes.

Am currently very happy with my Mini, but the next car will not be gas powered, so based on incentives, the switch may happen sooner than originally planned.

 

[TomT]

Same here. Another reason why I am leasing...

Something that you will have to be very careful about, however, is that the EV Federal Tax Credit only applies to Federal Tax and not to Self Employment taxes. I am self employed as well and that was the information that I received today.