IRS Federal Tax Credit; 2020 update?

welcome!
or consider flying east and driving one home. see the pricing thread for others experience for co.

 

Not sure when the .gov site information gets updated. My guess is it won't get updated at least until next year, 2020 when you can actually start filing the tax. I don't know about 2019 model, but for 2017 model I did not get the correct form available until sometimes in March IIRC.

I don't know how the CO state incentive works, but for federal, you must have at least $4502 federal income tax liability to be able to get the full credit, otherwise, you will only get up to the tax liability you have for 2019 income tax return.

 

Salamander's point is important. Look on your 2018 form 1040, on line 15. That is your total tax for that year. Will 2019 be similar? The maximum $4502 nonrefundable credit is off that 2019 line 15 total tax amount (and the 2019 line number might be different). If your year-of-purchase total tax is, say, $3000, then your credit is that amount, $3000. The nonrefundable remainder is lost.

If the credit is valid in 2019 (it is, isn't it?), and if the car is essentially unchanged (it is), then the 2019 credit on a 2020 model will most likely work the same as what we've had in the past years. The IRS us underfunded and understaffed. Expect things to be late.

 

We have no information that the credits have been revoked, and Congress usually doesn't do ex-post-facto repeals of such things.

While Tesla and someone else have reached their phaseouts, Toyota and most others have not.

 

hmm.. wait.. doesn't the credit go by when the purchase was made? I got a 2020 model in Sept, so I should be able to go by what has already being published for 2019, right?

Why is it that there is no state incentives for PHV in NJ?????

 

The IRS has a very specific list of qualifying models. The Model Year 2020s are not yet on it.

You should be good. It would be very highly unusual for you to get rejected now. But the IRS doesn't yet have the necessary qualifying list posted.

 

SOB.. they better not change it.. I already lost out on nearly $10K on incentives and rebates choosing Prius over Leaf (which I found out about a week after I got the Prius).. another $4500 would really break my heart.

 

It is rare for them to do so retroactively. It can happen, but is rare.

The necessary law to get the credit is in place and doesn't expire this year, so if they don't mess with it, you'll be good.

The information has been out there for several years ...

 

Gee thanks.. that made me feel so much better.
I did know about the higher tax credit and no state sales tax on EV, but still chose Prius over Leaf.. later I found out a $5000 rebate off MSRP offered by JCP&L on the last day before it expired. That would have made a world of difference in the final choice.

 

that's why you should buy these cars for environmental reasons, instead of financial

why doesn't nj have a tax credit? ask your rep

 

Incentives at that level are often less well, or even outright poorly, publicized, so missing them is much more understandable than missing the federal and state offers.

But maximizing short term incentives is not necessarily the best long term approach. I've intentionally skipped some good looking ones.

 

Even if its not listed yet, it should still be eligible. As long as the vehicle is a qualified plug-in vehicle (see Notice 2009-89 if you want a cure for insomnia) and the auto manufacturer has not reached 200,000 sales, the vehicle will still be eligible.

So far, the only ones reaching that limit are GM and Tesla (from Federal EV Tax Credit Phase Out Tracker By Automaker – EVAdoption):


At the 2019 monthly rate of qualified EV sales, it would take Toyota another roughly 5.5 years to hit the limit.

 

FYI, the Colorado tax credit is refundable, meaning you still get the full benefit even if you pay less than $5000 in state tax. It's pretty generous.

I think Xcel has a $3000 rebate on the Leaf, in addition to all the other credits. But the Prime still made more sense for me.

 

FYI as of 10/28/29 the irs site does include the 2020 Prius Prime in the listing of qualifying cars.

 

2029?

 

hey guys. I've been trying to search online but couldnt find an answer. Is there an income limit to claim the federal tax credit? In California I see the state rebate is capped at 150k for single filers.

 

No limit, you just need enough tax liability to cover it... which most households commonly do.

Remember, it reduces what you pay to the government, rather than being a monetary gift.