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Some residents qualify for a local rebate of $3,000

The state pushing the hardest to transition drivers from gasoline-powered vehicles to electric vehicles and hybrids is California. Part of the state’s push to get people to adopt electric vehicles has come by way of tax credits and rebates (which are in addition to rebates available at the federal level).
 
All of those rebates can be combined making for a significant discount off the purchase price of an electric vehicle. The state of California offers a $2,500 rebate on the purchase of an electric car. The federal tax credit for buying an electric vehicle is $7,500. However, the San Joaquin Valley Air Pollution Control District recently announced that it is offering drivers in the district another $3,000 to purchase an electric vehicle.
 
When combined the local, state, and federal tax rebates, this represents a total of $13,000 off the price of an EV. To compare, in the state a new gasoline-powered Toyota Corolla has a sticker price of just under $18,000. By comparison, the electric Mitsubishi iMiEV has a sticker price of $29,975. That is a huge difference between factory MSRPs for the vehicles, but when you knock off the $13,000 in credits, the purchase price of the Mitsubishi EV is a more palatable $16,975.
 
Despite the significant discount, most drivers still stay away from electric vehicles. The biggest reason is range anxiety and long charging times. However, electric vehicles can be cheaper to operate. An example would be to drive the gasoline-powered Corolla mentioned before with a travel distance of 40 miles a day with gasoline at $3.95 per gallon would cost the driver $150 a month. Charging the electric car to drive the same distance each day would cost about $50.
 
President Obama is also seeking to expand tax credits for EVs by bumping the federal credit from $7,500 to $10,000, making the price gap even less if approved.

Source: CBS47.tv



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RE: Credit
By FITCamaro on 8/24/2012 11:01:05 AM , Rating: 3
Nothing he said is incorrect.

The $7500 is a tax credit. You don't get it back until you file your taxes. I'm not sure how the California credits work, but they definitely can't afford it.


RE: Credit
By RufusM on 8/24/2012 11:33:44 AM , Rating: 2
And a text credit is deducted from the final tax amount owed, unlike a tax deduction which just reduces the rate at which your taxed.

A tax credit goes like this:
After everything is calculated, I owe $3K in taxes. Subtract the $7.5K and I get back $4.5K as a refund.

Tax credits are typically just free money from the Government delayed until tax time.


RE: Credit
By FITCamaro on 8/24/2012 12:47:33 PM , Rating: 2
And he called it a credit.


RE: Credit
By jimbojimbo on 8/24/2012 11:39:22 AM , Rating: 2
No, the initial poster has no idea what he's talking about.
quote:
just can write off $7,500 on your taxes at the end of the year

Writing it off is a tax deduction. A tax credit means that if at the end of the year you've paid $12,000 in taxes and wind up you did owe $12,000 for that year, which makes you even, then that $7500 will be credited right back so you'll get a fat $7500 refund check. A deduction means the amount you declare becomes nontaxable so a $7500 deduction will net you maybe $2000 back, assuming you are above the standard deduction already.

To those of you saying most people can't benefit from this consider the fact that you only need to make about $35,000 a year to wind up paying about $7500 in taxes, assuming you don't contribute anything to tax deductible items like IRA and charity and such. If you don't make that much you have no business trying to buy a $30,000 car.


RE: Credit
By Spuke on 8/24/2012 12:05:15 PM , Rating: 1
None of you know what you're talking about. You ONLY get the entire $7500 IF you have at least that much in tax liability. AND it only goes to reduce your liability. YOU DO NOT GET ANY CASH, REBATES OR OTHERWISE!!!! How hard is this to understand?


RE: Credit
By FITCamaro on 8/24/2012 12:45:39 PM , Rating: 2
Pretty sure you get the full amount regardless of whether or not your liability is greater than or equal to the full amount. At least other credits have worked that way.


RE: Credit
By toffty on 8/24/2012 1:23:42 PM , Rating: 2
As someone who actually bought a Leaf I can tell you it's not a refund. If your liability is less than $7500, you don't get any extra money back: If someone owed $4000 in taxes, $4000 would be covered by the credit and the government would keep rest - $3500 in this case.

This is unlike Colorado where it is a rebate after federal credits. I probably will not owe more than $12,500 after my other credits this year so Colorado will be giving me a check for the difference of its $5000 rebate.


RE: Credit
By Spuke on 8/24/2012 2:12:01 PM , Rating: 2
quote:
As someone who actually bought a Leaf I can tell you it's not a refund. If your liability is less than $7500, you don't get any extra money back: If someone owed $4000 in taxes, $4000 would be covered by the credit and the government would keep rest - $3500 in this case.
This.


RE: Credit
By Ammohunt on 8/24/2012 7:49:30 PM , Rating: 2
you bought a leaf in Colorado? i guess you don't do much driving....just in town driving around Boulder?


RE: Credit
By JPWhite on 8/25/2012 8:47:50 AM , Rating: 2
This is true if buy outright. Those who's tax liability is significantly below the full tax credit amount CAN get the full value, by leasing the vehicle instead.

I believe Obama wants the credit to go up to $10,000 and be an instant credit at point of sale rather than through tax filing. If that passes (fat chance) then EV sales will pick up nicely.


RE: Credit
By FITCamaro on 8/24/2012 12:49:30 PM , Rating: 2
His terminology may have been off but I think he mean exactly what you are saying as well.

I say its a write off too when explaining it.


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