Colorado Offers Tax Credits On Used EVs, PHEVs
Shopping for a used PHEV or EV in Colorado? You still may be able to take a tax credit, thanks to the state’s structuring of its EV purchase tax credit.
The credit — up to $6,000 — can be applied to used PHEV or EV purchases so long as it wasn’t claimed already via VIN registration, Green Car Reports says. Though most Colorado-based offerings likely already have the credit cashed-in, out-of-state imports are the biggest beneficiaries.
Per an anonymous source, a Colorado resident could purchase a vehicle registered out-of-state for at least three years after originally leaving the lot, then bring the car back home to register its VIN as used in Colorado, legally claiming the credit on their next tax return in so doing.
According to the publication, the used PHEV/EV credit is the only one of its type in the United States, as the focus of tax incentives is on new vehicles.
[Photo credit: Eric Lumsden/ Flickr/ CC BY-ND 2.0]
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This is a bigger deal than it probably appears at first. I live in WA where there's a substantial benefit to buying a new EV: no sales tax on new ones (~9% savings). Between that tax break and the federal tax credit that only apply to new sales, dealers have no hope of selling used EVs coming off lease because their new counterparts are effectively the same price. When shopping for my EV, the Nissan dealer told me that most off-lease Leafs end up on a ship to Norway. Regardless how you feel about tax credits, they haven't worked as designed. Your tax money essentially subsidies Norwegians getting cheap used EVs. At least now they can be shipped to Colorado. Merica!
Now I know where all the Leafs in Georgia are headed in two years when the leases are up.
How many times are the taxpayers going to be expected to pay for these cars?
For starters - at least this isn't anywhere near what they used to offer here. EV credits were percentage based. Why do you think Tesla took such a big hold in Boulder and Denver, back during the Roadster days? My office in the DTC just installed 6 complimentary EV chargers in the parking lot. With this tax credit, buying a used Volt out-of-state and just driving it to work and back is damn near a break even proposition after 2-3 years. I realize the free electricity isn't going to last, but it sure is tempting for the short term...