Prius Prime Preliminary State Tax Credit Discussion

Discussion in 'Prime Main Forum (2017-Current)' started by wjtracy, Mar 28, 2016.

  1. Susan4ET

    Susan4ET Member

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    Also, I think my Central Oregon dealer regarding any Federal tax incentives/rebates is acting a little dumb about it and leaving it all up to me. He suggested I ask my tax person about it and how to apply, etc. Will Toyota automatically give me the $500 rebate or will the dealer just hope I forget about that? So if there is an Oregon expert around...?
     
  2. wjtracy

    wjtracy Senior Member

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    The Federal Tax Credit (and I am confused if it is still $4502 for Prime or recently went up to $5000) is definitely your responsbility to claim on your tax return next year. hopefully you actually have an tax owed because it is a tax credit not an automatic rebate.
     
  3. JimN

    JimN Let the games begin!

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  4. bill188

    bill188 Junior Member

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    I got the $5,000 from Colorado but I had to buy the car in Rochester, NY and the drive the car back home to Colorado
    Then I registered the car and got the $5k back on my State tax return.

    Posted via the PriusChat mobile app.
     
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  5. AnneLW

    AnneLW Member

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    I got $4502 tax credit from the Feds.
    $1500 direct rebate from CA --took about 3 months to get the check.
    $450 direct rebate from the electric company (mine is SCE but others have similar programs) -- took about two months to get the check.
     
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  6. Vikrant

    Vikrant New Member

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    I am about to buy a Prius prime advanced trim and debating between 2017 and 2018 model. I apologize if this is not the best thread to ask this question but I did not want to create a thread.

    there are the two best quotes from a dealer.

    2017 Prius Prime Advanced
    MSRP: $ 34,638
    Price before TTL: $ 28,577

    2018 Prius Prime Advanced
    MSRP: $ 34,638
    Price before TTL: $ 30,677

    I have three questions.

    1. If I buy a 2017 model (new car) in 2018, do I still get tax incentives from both Fed and State?

    2. Is it advisable to buy a 2017 model in 2018 considering the car has been sitting on the lot for about 7 months without being charged?

    3. Is 2k price difference in between 2017 and 2018 model enough to justify the depreciation?

    If anyone of you could please help me with this, that will be awesome. Thanks.
     
  7. wjtracy

    wjtracy Senior Member

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    You still get the Federal $4502 tax credit as long as you are the first owner.
    Not sure about local Oregon rules. State rules can sometimes be unclear.
    Not sure about the cost difference ...My cursory understanding is on the East Coast there may be more price incentive for the 2017.
     
  8. Vikrant

    Vikrant New Member

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    Thanks a lot. I will check on Oregon rules.
     
  9. triggerhappy007

    triggerhappy007 Active Member

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    2. Probably no data for this exist so it would be a minute difference.

    3. If you plan on keeping it forever, buy the 2017 and save the $2000. If you plan on selling it, you will get more for a 2018, but not $2000.
     
  10. Glenn G

    Glenn G Member

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    Per Kearsarge's post a while ago - Massachusetts offers $1,500.00 towards a Prime purchase (and a lease, I believe).
    I purchased my Prime on 6-5-18 & sent in the rebate application a few days later. I just received a notification that I will
    receive my $1,500.00 rebate within 75 days.

    Kind of a slow process, but fairly easy. The Federal Government is a tax credit that is not considered until
    taxes are filed. Also - you must owe at least $4,502.00 (or whatever north of $4,500.00) in Federal income tax
    for the applicable year to claim the full credit.

    Not an issue for me, but it's different than a state issued rebate, where regardless of your tax status, you receive a rebate.
    And...you must submit it within 90 days of purchase, vs. the US Govt. where this is taken care of when you file your taxes.
     
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  11. ziggy29

    ziggy29 Member

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    It appears that there is a pending (possible) $1500 rebate for PHEVs purchased in Oregon on or after January 1, 2018, but the funding for it has not been finalized yet:

    I can't post a link yet, but Google "oregon rebate plug in hybrid" and the link to this information should appear at the top of the search (it did for me).
     
  12. wjtracy

    wjtracy Senior Member

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    Oregon is sales tax free, right?
    I consider that a huge incentive for green cars.
    You would simply not believe annual car taxes on a Tesla in northern Virginia
     
  13. The_Ronald

    The_Ronald New Member

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    Ok. I never owe money. I always get money back .I usually pay around 15000 combined , state and federal, and I get like 5,000 back. I pay taxes simply through payroll deductions. So how will I benefit from buying a phev? Will my taxable income go down 7500 so I save that way? I read people say you have to owe the IRS money in order to get the tax benefits and it's confusing
     
  14. ziggy29

    ziggy29 Member

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    Yes. Saves a couple grand compared to most other states with a sales tax.
     
  15. ziggy29

    ziggy29 Member

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    The way tax credits generally work is this: If there's a $4,502 tax credit for Prius Prime, if the calculations on your 1040 indicate a tax owed of more than $4,502, you will get the full credit. The credits are subtracted from the tax otherwise due. For example, if you would have otherwise owed $10,000 in federal income tax, the $4,502 comes off of that and the tax owed is now $5,498. If you had $11,000 in taxes withheld, you'd get a refund of $5,502 (11,000 - 5498). If your tax owed before the credit is **less** than $4,502, your tax owed becomes zero and you lose the "extra" (i.e. you don't get a negative tax owed).

    So if your federal income tax due before the credit is greater than the amount of the credit, yes, you will get all of the credit, and the refund will be increased by $4,502.
     
  16. triggerhappy007

    triggerhappy007 Active Member

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    In your example, you will get $9,502 back if you buy a Prime. The Prime only gets a $4,502 tax credit. The $7,500 is for the Volt, Pacifica Hybrid, or most other EVs.

    I think people are confused because 'owe' is used in the following two situations. First is the total amount of taxes owed to the IRS at the end of the year. This is the number you're looking for to see if you qualify for the whole rebate amount. (In your example, you pay $15,000 in taxes and get a $5,000 refund so you owe the IRS $10,000, aka your tax liability.) Your tax liability is the number you use to calculate your EV tax credit.

    The second is when you're done doing taxes and you haven't paid enough taxes during the year so you owe the IRS money. This is the incorrect 'owe' amount to use to calculate your EV tax credit.

    I hope that clears things up. I'm not a tax expert, but I am a money expert. :)
     
  17. The_Ronald

    The_Ronald New Member

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    Thanks to those who helped me understand how the tax incentive works.
     
  18. DonnaPA

    DonnaPA New Member

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    I live in PA...I just got my $750 rebate check from the state of PA!
    REBATE AMOUNTS
    Electric and Electric Hybrids
    • $1,750 rebate for a Plug-In Hybrid Electric Vehicle (PHEV) or Battery Electric Vehicle (EV) (battery system capacity must be equal/greater than 20 kWh).
      • Examples: Chevrolet Bolt, Nissan Leaf, Tesla Model 3
    • $1,000 rebate for a PHEV or EV (battery system capacity must be between 10 kWh and 20 kWh).
      • Examples: Audi A3 e-tron, Chevrolet Volt
    • $750 rebatefor a PHEV or EV (battery system capacity less than 10 kWh).
      • Examples: Ford C Max Energi, Ford Fusion Energi
    Note: All rebate levels can include: electric motorcycles, electric ATVs and low speed electric vehicles if registered in Pennsylvania
     
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  19. utsug

    utsug Member

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    Were you on the waiting list for the CA rebate when you first applied for it? I'm trying to know if this rebate is still available. Thanks.
     
  20. ziggy29

    ziggy29 Member

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    The Oregon Supreme Court has ruled that the rebate program for $1500 to $2500 for PHEVs and EVs (depending on battery capacity) purchased since January 1, 2018 are constitutional and the rebate program will go on as planned. Anyone who has purchased such a vehicle in Oregon since then it encouraged to sign up for 'phase 1' applications for rebate. At a later date they will send out notifications to enter the 'stage 2' process where the rebates can start to be processed.

    Pamplin Media Group - State rebates for electrified vehicles approved


    State of Oregon: AQ Programs - Oregon Clean Vehicle Rebate Program
     
    #60 ziggy29, Aug 3, 2018
    Last edited: Aug 3, 2018
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