How your "innovative" vehicle can save you more money
On May 15th, 2013 the Colorado Legislature signed a bill that has the potential to significantly boost the tax benefit of owning or leasing alternative fuel and/or electric vehicles. House Bill 13-1247 extends the availability of credits for certain “innovative” vehicles and simplifies the calculation of these credits. Purchasers and lessee’s are now potentially eligible for up to a $6,000 credit on their individual or business Colorado income tax return for purchases/lease agreements made during the 2013 tax year through tax year 2021. The bill expands the availability of this credit to include the purchase of both new and used plug-in electric and plug-in hybrid electric vehicles. Also, non-plug-in vehicles with a minimum fuel efficiency of 40 mpg or greater, may qualify for the credit, if purchased during 2013.
It is important to note, however, that used vehicles are only eligible if the Colorado credit has not been previously claimed on that vehicle. The amount of the credit is dependent upon the vehicle specifications and purchase price, adjusted for any eligible credits, grants, and/or rebates. Also, for taxpayers that have already purchased a vehicle relying on information from the prior law, if that law provides more favorable treatment, it may still be utilized.
For those of you considering the purchase of a fuel efficient vehicle, for business use or pleasure, we would be happy to assist you with determining the potential tax savings available as a result of the newly modified credit. Please call Jordan Empey, Tax Manager, at (719) 630-1186 or email him at email@example.com.