Federal and State of Oregon tax credits

Dear Fellow Leaf Owners:

I live in SE Portland, Oregon and am considering the purchase of a brand new 2015 Nissan Leaf.
According to the advertisements and dealership communications, consumers who opt to buy a brand new Leaf qualify for certain tax credits.
I have the following questions:
Does everyone qualify for these tax credits?
For the Federal portion: Does everyone receive the maximum allowed of $7,500? (Form 8936)
For the Sate of Oregon portion: Does everyone receive the maximum allowed of $750? (Form OR-ASC)
Is this a dollar-for-dollar type of tax credit?
Is there any reason a person wouldn't qualify for these incentives and tax credits?

My Federal taxes are simple. I withhold at a lower number (2) and I do itemize my deductions, so still receive a refund each year.
Same thing with State of Oregon taxes. I receive a refund each year.
My earnings are below 100,000 annually, if that helps.

Any feedback on this topic would be greatly appreciated.

BMode

The LEAF qualifies for the full $7500 federal income tax credit, but you have to owe at least that much in a single year's taxes in order to use it; that's one of the reasons some people are given in favor of leasing. If you only owe $5K in taxes for the year you decide to claim the credit, $5000 is all you get back on a purchase, but since a big corporation has a plenty big tax bill, the leasing company that buys the car can claim the full credit and lower the effective loan amount accordingly. To be clear: just because you might be due a refund on federal taxes doesn't mean you didn't owe any taxes; just that your payroll withholding paid more than was due. If you had $14K withheld and appear to be due a $2500 refund, but bought a LEAF (or other EV with a suitably large battery), you'll get a $10K refund instead, because the $11500 that you owed was more than the $7500 credit. At least, that was my experience.

When I bought a LEAF in 2011, Oregon was still allowing a similar credit of $1500 off their state income tax, but that incentive is no longer available (but on the bright side, the state's been involved in deploying a very nice network of DC QuickCharge stations ). The $750 incentive you mention is, I believe, intended to help with the cost of installing EVSE (Electric Vehicle Supply Equipment) at home. According to a quick Google, it's a refund of 25% of what a resident spends to purchase and install EVSE, up to a maximum refund of that $750 figure. Nowadays, pretty good EVSEs are available for about $500-$700, so the limit probably won't come into play.

So in essence, if Line 72 under "Payments" section on my Form 1040 states an amount in excess of $10,000, that would be preferable, since I am normally due a $3,000 refund and I would want this higher amount to be included on Line 72 for next years' taxes, in order to be eligible to claim the full amount of $7,500 being offered through the purchase of a brand new 2015 Leaf. Is that correct and an accurate interpretation of your posted reply?

Additionally, if my current payroll withholding through my employer is only a 2, I should probably consult them to reduce that withholding number to a 1 or a 0 , so that my total payment increases and I can receive the full benefit of the current Nissan incentive when I file with the I.R.S next year. Is that an accurate course of action?

And thank you for the clarification about State of Oregon tax credit information, with residential install, etc.

Make sure the home charger is not a plug in, it has to be wired to electrical box to get rebate in oregon.

Learned that the hard way last year.

Epi117 said:

Make sure the home charger is not a plug in, it has to be wired to electrical box to get rebate in oregon.

Learned that the hard way last year.

Click to expand...

Sounds like a stupid restriction. I would have just taken the plug off the device, the wires out of the outlet, and "hardwired" it.