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Federal and State Incentives for Plug-Ins, EV's

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by wjtracy, Sep 24, 2012.

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  1. wjtracy

    wjtracy Senior Member

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    ...Well of course Andy if you want to instead invest in mutual funds that's fine. If you want to have some portion in savings bonds, you can only buy a limited amount of savings bonds per year, but one way to get extra savings bonds is via tax refund.
     
    #221 wjtracy, Dec 17, 2013
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  2. CharlesH

    CharlesH CA HOV Decal #5 on former PiP

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    The $1500 CA rebate is a check in the mail. It is not related to tax. Sort of like a mail-in-rebate.
     
    #222 CharlesH, Dec 18, 2013
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  3. PriusC_Commuter

    PriusC_Commuter Active Member

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    I'm in the boat of losing about $500 for the federal tax credit. I will owe about $2000 for this year. I thought about increasing the number of deductions I have to about 10 and hoping it gets updated in my last paycheck of the year then dropping it back down, but I'm not sure how legal that is. I might just lose the $500 :(
     
    #223 PriusC_Commuter, Dec 18, 2013
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  4. ksstathead

    ksstathead Active Member

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    Your credit is not a function of withholding. It is the tax liability for the year, "Total Tax".

    You need more income or fewer deductions, such as the Roth conversion suggested above, in order to increase tax liability for the year and fully realize the credit.
     
    #224 ksstathead, Dec 18, 2013
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  5. wjtracy

    wjtracy Senior Member

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    First of all (like KSS said above) the only thing that matters is Tax owed on "Form 1040 LINE 44 Tax." needs to be $2500 or more to get the full credit. There is a common mistake some folks think it is "Line 76 Amount you Owe" but Line 76 is just the residual amount you owe that you have not paid already via payroll deduction or quarterly payments. If you do not understand, you must do a sample calculation on TurboTax or TacAct.com to see how it works or visit a tax advisor.

    Assuming you do understand that, yes you could just lose $500, if Line 44 = $2000.
    Here are some 2013 year end tax moves you might consider to bump up your income and tax owed:
    • Convert a portion of any IRA to Roth IRA
    • Take some profits on stocks or US Savings bonds or other investments
    • Any other moves? A few more IRA games, if you usually put money in IRA you could put it in Roth IRA instead.
    Disclaimer- I am not a tax expert so you need to get an assist from someone if you do not undertsand how to do some of this.
     
    #225 wjtracy, Dec 18, 2013
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  6. wjtracy

    wjtracy Senior Member

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    Andy...I was glad you had responded to the thread because I became aware of some posts I had missed...thank you!
     
    #226 wjtracy, Dec 18, 2013
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  7. Andyprius1

    Andyprius1 Senior Member

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    . I Thank YOU for your response. Merry Christmas.
     
    #227 Andyprius1, Dec 19, 2013
  8. Andyprius1

    Andyprius1 Senior Member

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    The credit is really not sensible the way it is parceled out. I was fortunate in being able to take the whole thing in 2012 because of a Roth conversion in 2010. Or maybe unfortunate because I was subject to more taxation. Anyway it is only inspiring to certain groups, BEV purchasers and income that is qualifiable.:)
     
    #228 Andyprius1, Dec 19, 2013
  9. Andyprius1

    Andyprius1 Senior Member

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    . That is a real benefit. my car is still absorbing those funds in the form of petrol.
     
    #229 Andyprius1, Dec 19, 2013
  10. wjtracy

    wjtracy Senior Member

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    PiP Incentives - 2013 Review
    In this thread, the goal is to try to keep folks up to date on PiP/Prius incentives. We do this is by reports from PriusChat members, so please keep us up to date where possible.

    PiP incentives actually became less juicy and a little less fun in 2013:
    • West Virginia eliminated $7500 PiP tax credit:(
    • Maryland reduced PiP incentives to $600 (had been up to $2000)
    • Virginia added +$64/yr Hybrid and Plug-In extra annual fee (going backwards)
    • I think Colorado reduced PiP incentives, but I still do not understand CO PiP incentives
    Here is on-going summary and info we'd like to get:
    • CA retains $1500 PiP credit; NOTE 2014 may see last green HOV stickers as 40000 limit is close
    • I assume PA still has $1000 rebate but someone from PA please udpate
    • I think Hawaii may have a a PiP credit ...somone pls aloha back on this
    • CO I never understood how much if any $$ the PiP/Prius credit is worth (it's a % of the incremental cost over non-hybrid vehcile but I am foggy on how that works...Colorado remains among the best incentives for Volt, Leaf approach $6000 tax credit but I believe PiP credit is less lucrative)...we do not have too many CO PiP owners so that's why we have a little less info. Believe CO also retains the best conversion tax credits for converting hybrid to Plug_in.
    • NY has HOV access for PiP/Prius on Long Island Expressway HOV...important for some
    • US Federal $2500 tax credit still good for PiP
    So overall slow year in 2013. I had thought PiP would roll-out nationally and we would hear from more states. Keep us informed of updates or corrections in your states.
     
    #230 wjtracy, Jan 15, 2014
  11. drinnovation

    drinnovation EREV for EVER!

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    Colorado has changed its process, for new cars is no longer the differential. As detailed athttp://Alternative Fuels Data Center: Colorado Laws and Incentives for Vehicle Owner/Driver
    The Credits for EVs and PHEVs are equal to the actual cost incurred to purchase or lease the vehicle, multiplied by the battery capacity, and divided by 100. That amount must be multiplied by a factor to determine the credit amount, as follows: 1.0 for 2013-2018, 0.75 for 2019, 0.50 for 2020, and 0.25 for 2021.

    For a PiP costing $32000, with a 4.4kWh battery the rebate is about $1400. There is a cap of $6000 which impacts only a few cars.

    For PHEV conversions its 75% of the installed cost (at least through 2018), so at Boulder Hybrid Conversions you can get a 10kWh upgrade to your Prius Gen 3, for 5800 after the rebate.. or a 4kWh upgrade for $2600 after rebate of $7150. Thus the rebate for the 4kWh upgrade is much better than the rebate on the PiP.
     
    #231 drinnovation, Jan 17, 2014
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  12. Lunnara

    Lunnara Junior Member

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    Tax credit noob here. If I buy a PiP this weekend, can I file for the fed tax credit in my 2013 tax return or do I have to wait for next year's taxes? Thanks in advance!

    Update: Checked through TurboTax..looks like I have to wait for next year. Poop!
     
    #232 Lunnara, Jan 18, 2014
  13. wjtracy

    wjtracy Senior Member

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    Sorry yes as far as I know 2013 IRA contrib is one of the few things you can do after the tax year is over.
     
    #233 wjtracy, Jan 18, 2014
  14. fortytwok

    fortytwok Active Member

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    FYI
    Today I was told that for the first time TurboTax will accommodate this electric car credit with its online filing.
     
    #234 fortytwok, Jan 21, 2014
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  15. Lunnara

    Lunnara Junior Member

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    Did TurboTax not before?
     
    #235 Lunnara, Jan 21, 2014
  16. fortytwok

    fortytwok Active Member

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    correct - I called during the year and in 2013 they didn't support that form 8936
    They said you'd have to print and mail but issue resolved...
     
    #236 fortytwok, Jan 21, 2014
  17. wjtracy

    wjtracy Senior Member

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    I think you are saying Turbo Tax always had the form, but for some reason there was an efile issue with it.
     
    #237 wjtracy, Jan 21, 2014
  18. fortytwok

    fortytwok Active Member

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    yes - heck anyone can get the form but for me anyway the reason I used TurboTax was to do everything online and have them store stock carryover losses...
    So last year when I heard they couldn't accommodate that filing I wasn't pleased - now its not an issue
     
    #238 fortytwok, Jan 21, 2014
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  19. reddavid

    reddavid Junior Member

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    TurboTax says cannot file form 8936 electronically until 2/6/2014. Not so bad.

    Got a 1099-misc for PA State rebate of $1,000. Taxes gonna eat about $250 of that!
     
    #239 reddavid, Jan 28, 2014
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  20. fortytwok

    fortytwok Active Member

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    Wait - so you get a PA state rebate of $1,000 to presumably encourage people to not pollute ?
    and then the Feds take $250 of that ? :censored:

    and then the Feds give you $2500 because they'd also like you to not pollute ?
    Will PA then tax that $2500 ? this is making me dizzy
     
    #240 fortytwok, Jan 28, 2014
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