Colorado Credits Updated
 

The Colorado Deptartment of Revenue has updated their vehicle chart for state income tax credits to include 2008 models.

The 2008 Ford Escape Hybrid information is missing, which is odd. The 2008 Escape Hybrid has the updated drive system and battery and gets better mileage than previous versions. And it was an early-release 2008 model, with production and sales starting in late January 2007. It was certified by the IRS almost one year ago.

http://www.revenue.state.co.us/fyi/pdf/income09.pdf

Check out the $13,779 credit for the Lexus 600h. That's just wrong on so many levels. But good for them for following the formula and applying it to all hybrids.

Re: Colorado Credits Updated
 

It has been updated again. Cha-Ching!!!!!

http://www.revenue.state.co.us/fyi/html/income09.html

Re: Colorado Credits Updated
 

Hi,
How does one go about claiming the Colorado Tax credit ---

I purchased a new HiHy in April (or March -- can't remember) of 2007.

Thanks
Andy

Re: Colorado Credits Updated
 

Go to the Colorado Department of Revenue website, www.taxcolorado.com
and get form 104 for filing taxes and form 104CR for claiming credits. Credits are listed in the "Income TAX FYIs", FYI #9, here,
http://www.revenue.state.co.us/fyi/html/income09.html

You can only claim enough to offset your total tax. If the credit is bigger than your tax, carry the remainder forward.

Here's an imaginary example: Let's say your HiHy gets a $3500 credit, your W-2 shows you paid $2500 in CO state tax in 2007, and your tax form 104 shows your total CO tax due is $3000. Normally you would have to pay $500. With the hybrid credit, you claim the first $3000 of your $3500 entitlement on line 42 of 104CR, offsetting all your tax and bringing it to zero. Instead of writing that $500 check on April 15, you get a $2500 refund.

In this example, you've only used the first $3000 of your $3500 entitlement. At the bottom of form 104CR in the area marked "Credits to be carried forward" you just write "$500 of Alternative fuel vehicle credit carried forward to 2008" and you're done.

Tax software will do most of this for you. If you don't pay Colorado income tax, you won't see any benefit.

Re: Colorado Credits Updated
 

Chances are your credit can't exceed your state taxes paid in so I doubt most will get the full amount. Only the REAL wealthy will get the whole credit which is even more counterintuitive. Then again with taxes what is intuitive? :D

Re: Colorado Credits Updated
 

Actually, most will get the full amount, just not all at once. Unlike the Federal credit, any entitlement not used in the current year is carried forward and may be used against next year's tax, and again the following year and so on, up to five years.

Anyone who can afford a 600h is likely making over $100K per year and liable for $3500 or more per year in State income tax.

True, most will not get the full amount this year but higher income taxpayers can easily use it all in 3 or 4 years.

Re: Colorado Credits Updated
 

Yeah! I guess so! Thanks for that info!

Re: Colorado Credits Updated
 

You've got to love the Hybrid credit the State of Colorado has. I used it on both the 2004 and 2007 Civic Hybrids I've purchased. In both cases it elimated my state tax liability in the year I bought them, 2003 and 2007 respectively, and reduced my tax liability in each of the following years.

Re: Colorado Credits Updated
 

Whoa! Too bad. Mild hybrid vehicles such as the Chevrolet Malibu and Silverado, Dodge Ram, GMC Sierra, and Saturn Aura and VUE do not qualify for the alternative fuel vehicle credit.
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