Tuna55
Member
Folks, I understand there to be confusion here. The federal tax on a lease is taken by Nissan and then given back over the course of the lease, causing low lease payments. Got it.
The state laws in SC have changed recently. Very. It used to be only on a sale and a certain percentage of the federal tax break, but the law is now as follows:
Plug-In Hybrid Electric Vehicle (PHEV) Tax Credit
For taxable years before 2017, an income tax credit is available for the in-state purchase or lease of a new PHEV. For the purpose of this incentive, a PHEV is a vehicle equipped with an internal combustion and an electric engine with an all-electric range of not less than nine miles and at least four kilowatt hours (kWh) of battery capacity. The credit is equal to $667, plus $111 if the vehicle has at least five kWh of battery capacity, plus an additional $111 for each additional kWh, with a maximum allowed credit of $2,000. Low- or medium-speed vehicles do not qualify for this credit. Total claims for all taxpayers in one year may not exceed $200,000 and are available on a first come, first served basis. (Reference House Bill 3059, 2012, and South Carolina Code of Laws 12-6-3376)
I called the SC tax folks in Greenville with the obvious question: Does this count every year for the lease or only the first?
They said it counts every year.
If this is right, it means the lease cost is $400 per year net plus the down payment. Is this right? Really? Can anyone speak to this with credibility? Any good tax lawyer contacts?
Thanks
-brian
The state laws in SC have changed recently. Very. It used to be only on a sale and a certain percentage of the federal tax break, but the law is now as follows:
Plug-In Hybrid Electric Vehicle (PHEV) Tax Credit
For taxable years before 2017, an income tax credit is available for the in-state purchase or lease of a new PHEV. For the purpose of this incentive, a PHEV is a vehicle equipped with an internal combustion and an electric engine with an all-electric range of not less than nine miles and at least four kilowatt hours (kWh) of battery capacity. The credit is equal to $667, plus $111 if the vehicle has at least five kWh of battery capacity, plus an additional $111 for each additional kWh, with a maximum allowed credit of $2,000. Low- or medium-speed vehicles do not qualify for this credit. Total claims for all taxpayers in one year may not exceed $200,000 and are available on a first come, first served basis. (Reference House Bill 3059, 2012, and South Carolina Code of Laws 12-6-3376)
I called the SC tax folks in Greenville with the obvious question: Does this count every year for the lease or only the first?
They said it counts every year.
If this is right, it means the lease cost is $400 per year net plus the down payment. Is this right? Really? Can anyone speak to this with credibility? Any good tax lawyer contacts?
Thanks
-brian
