Viktor wrote:Another 1 week old Colorado Leaf owner here )) what are U guys getting back from the state on your leases. I had spoken to 2 guys here and for 2 years lease we should get only part of the rebate. So far got 2 numbers - 1999$ and 700$. Anyone with accounting degree aroun here? What to expect in tax rebate?...
The Department of Revenue document on the tax credit, "FYI Income 67: Innovative Motor Vehicle Credit", is currently being revised. You can take a look at the older document "FYI Income 9: Alternative Fuel Income Tax Credits"
to get an idea of how the credit works for leasing. [Be aware that this older FYI also includes information on the previous tax credit, now expired. FYI Income 67 will be specific to the current credit.]
The general idea is that the credit is first calculated then adjusted for the capitalized cost of the leased vehicle. They give this example:
Can a leased vehicle qualify for this credit?
Yes, lessees of qualifying vehicles are eligible for the alternative fuel vehicle credit. The available credit is calculated by subtracting the value of the vehicle when the lease expires from the cost of the vehicle to the lessor at the time of
the lease transaction (capitalized cost), and dividing that amount by the cost of the vehicle to the lessor at the time of the lease transaction. This percentage is then multiplied by the qualifying expenses to determine the amount of the
expenditure that can be used in computing the amount of the credit. Only the lessor or lessee of the vehicle may claim the credit. If the vehicle is converted at the factory, the lessor has the option of claiming the credit or passing the right to claim the credit to the lessee. If the lessee converts the vehicle, then only the lessee may claim the credit.
Example: John leases a 2010 Toyota Prius valued at $23,550. The vehicle will have a value of $16,750 when the lease expires. The credit is computed as follows:
a. Value at time of lease $23,550
b. Value at end of lease $16,750
c. Line a minus Line b $6,800
d. Line c divided by Line a 28.9%
e. Full credit for vehicle $2,448
f. Credit available on lease line d times line e $707.00
Interpret this as you will. I believe the current tax credit for a purchased LEAF is $4815, so that would be your baseline (unless the calculation changes with the "FYI Income 67" revision). It should be the maximum $6000 but the DoR uses calculations of a comparable vehicle that are flat wrong
and my attempts to get them to correct it were futile. If you live in the Denver metro area perhaps you can give it a try; it was too far away for me to pursue.
If you'd like to look at the actual law concerning the tax credits it is CRS 39-22-516.5. Tax credit for innovative motor vehicles