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

Sounds like we are quite good agreement. I wish I would have known what you said about the credit going to E85 vehicles also. Here in North Virginia we are somewhat isolated from the natural gas activity, so I cannot comment. I believe nat gas makes good sense for some fleets, but as far as state incentive policy I am not up to speed.

 

...frankly, no one seems to care too much about it. If a few drivers implement the tips, no one will notice. I just registered my car thru to 2017, so that saves me about $250 in new annual fees. All I had to do was check off 3yrs in the annual registration paperwork.

 

VA and NJ are now soul brothers in that both states are about the lowest gasoline tax in the nation. VA now being lower than NJ with our new low gaso tax policy. This gives less incentive too. Gaso prices will likely still be cheaper in NJ, believe we probably see 10-20 cents higher wholesale prices here.

 

MARYLAND UPDATE

Finally some good news on the incentives front , it would appear MD has re-started a new program for Plug_in incentives ($600 for PiP). The older program ended (?) March 16, 2013. I am quite confused about when the old program actually ended and when the new 2014 program starts, but it looks like the new forms are available already for submission. BTW, these incentives programs seem to be have a lot of loose ends administratively...in Oregon for example, the hybrid credit program ended a few years ago, but a few folks here were still able to claim the credit because the rebate forms were still active on the internet.

innerpri said: ↑​

Bought my PiP in Frederick Md. Darcars. I paid tax. It states near the bottom as Title tax. Then I applied for the rebrusement of the excise tax through DMV. Got it in about 2 weeks. I photo copied my invoice ( I believe I called them to see if I needed any supporting material and that is what they told me to do). Also at the same time send in the HOV Sticker application, it is free and has just been extened to 2017....for free.​

2 links​

http://www.mva.maryland.gov/Resources/VR-334.pdf​

http://www.mva.maryland.gov/Resources/VR-335.pdf​

WJTracy said:
Does it sound like the excise tax credit was recently re-instated at a lower amount ($600 for PiP)?

Yes the good news is it sounds like there is a new Plug-In tax credit for fiscal 2014. But I don't know when fiscal 2014 starts (July_2013?) or if purchases between March 16 (end of 2013 program) and July 1 quality. Sounds like it's worth a try.​

​

http://www.mva.maryland.gov/Business-Services/Bulletins/legislation-2013-bulletin.pdf​

Read more: http://priuschat.com/threads/maryland-excise-tax-and-pip-invoice.127155/#ixzz2UoLsmIXD

 

Wow that is super...we get $2500 Fed and a few states give an extra $1000 or so.

 

Hopefully Mozdzen can answer, but my understanding is you can take the Fed $2500 tax credit as long as you owe at least $2500 tax for the year. If you have zero tax liability, then you are stuck with a credit you cannot take. If you owed say $1500 tax, then you could take a $1500 credit.

 

...hmm, that's a funny answer from IRS...not sure I agree.

FORM 1040, LINE46 is Tax Owed Before Credits = $2500 (for this example)
FORM 1040, LINE54 is Total Credits = $2500 (for this example PiP tax credit)
FORM 1040, LINE61 is Total Tax = $0 (in this example)

In this example, you owe $2500 in tax but this is exactly off-set by the PiP tax credit. There is no requirement that you would have had to pay IRS $2500 first and then they sent it back to you.

You can use TurboTax to do your own examples. If you do not want to pay for it, I think you can use TurboTax online to do a test calc for no fee. Sometimes I use TAXACT.com for that purpose too.

As alluded to by Mozdzen, he now realizes he might have found a way to create $2500 tax owed by various techniques such as converting IRA to Roth IRA etc. If you are worried about 2013 tax year, there is time to consider tax planning to maximize your PiP tax credit.

 

I am not following your concern exactly; we could do a TurboTax example. But your example is a case where the PiP tax credit is a no brainer. Keep in mind, the EV/Plug_in tax credit is designed to be a powerful tax credit, that is not impacted by AMT or other income high limits. You still get the credit even if you are rich and famous and buying a Tesla ( as long as you owe tax). The reason it is a powerful tax credit is that Congress learned thru experience with the earlier Hybrid tax credit (which was severely reduced by income level) and C4C credits, some of the mistakes.