Colorado Tax Credits

[freshpow]

Thanks Lpool63 for providing that info. I do see that the IRS publication you linked to only lists the 2022 and 2023 model years. I wonder though why the 2024 MY isn't listed. I assume it doesn't have any noteworthy changes that would disqualify it. But since it's not currently listed, I guess it would be risky to try to get the tax credit for a 2024 MY vehicle based on the pre-Aug 2022 criteria.

To be fair, that list only got updated recently with the 2023 model year for Rivian so my guess is it will get updated again next year to include 2024.

https://www.rivianforums.com/forum/...ded-2022-federal-tax-return.14839/post-360463

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[Warmoth]

Good point. I was just thinking of R1T. Did they say when you called that R1S would still be considered a truck? I would think you’re right and it would fall into the passenger column.

I believe the R1S falls under the Innovative Truck Credit. The Innovative Motor Vehicle Credit is for (in short) a vehicle with a GVWR 8,500 or less. The publication states that "a light duty passenger motor vehicle with a GVWR of more than 8,500 may qualify for the innovation truck credit."

The Innovative Truck Credit in relevance states that "The credit is also allowed for light-duty passenger motor vehicles that satisfy all of the preceding requirements and busses with a minimum seating capacity of 33, including the driver, that satisfy all of the preceding requirements. Light-duty passenger motor vehicles with a GVWR of 8,500 pounds or less may qualify for the innovative motor vehicle credit, rather than the innovative truck credit."

The preceding requirements in the truck credit are GVWR of 8,500 or more, along with the same requirements of a motor vehicle (excluding number of wheels).

Publication link: Income Tax Topics: Innovative Truck Credit (colorado.gov) / Income Tax Topics: Innovative Motor Vehicle Credit (colorado.gov)

Thus, in the innovative truck credit, I do not believe the chart is wrong. The light duty passenger motor vehicles with greater than 8,500 GVWR makes sense. (sorry, not sure how to capture a picture of the chart and post it... chart can be found on page 3 of the innovative truck credit).

 

[soumak]

hey guys. i was looking at this and didn't see my exact scenario. So i have pre-price increase pricing. I have not yet finalized my order even though i did sign the agreement when that came out last year. so based on reading this thread i should

1) Wait until 2024 to get the rivian @ the lower price due to pre-hike pricing.
2) should be able to get the 7500 tax credit
3) should be able to get the 5000 from colorado

can someone let me know if that is correct?

 

[Spaceball1]

hey guys. i was looking at this and didn't see my exact scenario. So i have pre-price increase pricing. I have not yet finalized my order even though i did sign the agreement when that came out last year. so based on reading this thread i should

1) Wait until 2024 to get the rivian @ the lower price due to pre-hike pricing.
2) should be able to get the 7500 tax credit
3) should be able to get the 5000 from colorado

can someone let me know if that is correct?

I think the only concern I'd have in your case would be if a 2024 model will still qualify for the binding agreement. I saw somewhere that only 2022 or 2023 models will qualify.

So unless you can get lucky and get a 2023 model delivered after January 1, I would maybe caution to just take the truck this year (if you can) and just take the smaller state rebate.

 

[Warmoth]

hey guys. i was looking at this and didn't see my exact scenario. So i have pre-price increase pricing. I have not yet finalized my order even though i did sign the agreement when that came out last year. so based on reading this thread i should

1) Wait until 2024 to get the rivian @ the lower price due to pre-hike pricing.
2) should be able to get the 7500 tax credit
3) should be able to get the 5000 from colorado

can someone let me know if that is correct?

Based on my prior post (#32), by waiting until 2024 you will be able to get both credits, as long as the MSRP is $80k or less...

As Spaceball mentioned, a wildcard part of the equation will be if the 2024 models will be added to the allowed vehicles per the IRS. There is a chance that the list of vehicles will be updated to include 2024 models. If there is no update to the IRS list, then you'd be relying on the critical battery/mineral, etc requirements, even though you have a binding agreement.

Edit: something to consider is even though you potentially get more money back by waiting to 2024, keep in mind that you will not be able to get that amount until 2025 when you file your 2024 tax return; versus buying today and come April 2024 filing and getting your Colorado tax credit sooner than later.

 

[mtberman]

There will always be a reason to wait. I am post-increase and grabbed a dual motor R1T from the shop for less than $80K, and I'm really glad I pulled the trigger.

But Yes, you are right in thinking that you could potentially be eligible for the $3750 higher tax credit if you wait. As said above, this is assuming the 2024s qualify.

 

[soumak]

Update: NM i think answered my own question. the original was for "cars" (weigh less than 8500). Trucks $5k starts in 2024. rivian is (8532ish)

So i know everyone keeps saying that the colorado tax credit increases to 5k in 2024...however, i found this from colorado.gov site. wouldn't this mean we qualify now?

https://tax.colorado.gov/sites/tax/files/documents/ITT_Innovative_Motor_Vehicle_Credit_Jun_2023.pdf

 

[mtberman]

Yes, prior to 7/1 the credit was phasing out and had dropped to $1500.

It was extended by the legislature with an effective date of 7/1/23. You get the full $5000 refundable state credit as long as you bought after 7/1.

 

[Spaceball1]

Yes, prior to 7/1 the credit was phasing out and had dropped to $1500.

It was extended by the legislature with an effective date of 7/1/23. You get the full $5000 refundable state credit as long as you bought after 7/1.

that only applies to lighter vehicles. Rivians fall into the Truck category and that part of the law (for some reason) doesn’t go into affect until 1/1/24. See the posts above.

 

[alextakesphotos]

that only applies to lighter vehicles. Rivians fall into the Truck category and that part of the law (for some reason) doesn’t go into affect until 1/1/24. See the posts above.

Thats right! So I believe anyone who got a Rivian in CO for this whole year gets $2800

 

[gokcabaga]

Thats right! So I believe anyone who got a Rivian in CO for this whole year gets $2800

Not a tax professional but looking at the statutes referenced by the Innovative Truck Credit tax publication, I think privately owned GVWR>8500 like the typical R1T and R1S are due $2000 in 2023, not $2800. C.R.S. 39-22-516.8(1)(x) says a “Light-duty electric truck ... does not include a light-duty passenger motor vehicle", then C.R.S. 39-22-516.8(1)(y) says a "Light-duty passenger motor vehicle means a private passenger motor vehicle ... capable of seating twelve passengers or less;  except [stuff irrelevant to Rivians]."

R1S and R1T can both fit in that last definition, the key word being private, i.e. non-commercial.

Anyway the statute and the tax publication both say $2000 in 2023 for "Light-Duty Passenger Motor Vehicles (greater than 8,500 lbs. GVWR)".

Maybe a Rivian licensed for commercial/business use could get $2800 this year under the credit for "Light Duty Electric Trucks (8,500 – 10,000 lbs. GVWR)"

 

[alextakesphotos]

I guess I missed the fine print but yeah sounds like you are correct.

 

[waitingonanr1s]

Not a tax professional but looking at the statutes referenced by the Innovative Truck Credit tax publication, I think privately owned GVWR>8500 like the typical R1T and R1S are due $2000 in 2023, not $2800. C.R.S. 39-22-516.8(1)(x) says a “Light-duty electric truck ... does not include a light-duty passenger motor vehicle", then C.R.S. 39-22-516.8(1)(y) says a "Light-duty passenger motor vehicle means a private passenger motor vehicle ... capable of seating twelve passengers or less;  except [stuff irrelevant to Rivians]."

R1S and R1T can both fit in that last definition, the key word being private, i.e. non-commercial.

Anyway the statute and the tax publication both say $2000 in 2023 for "Light-Duty Passenger Motor Vehicles (greater than 8,500 lbs. GVWR)".

Maybe a Rivian licensed for commercial/business use could get $2800 this year under the credit for "Light Duty Electric Trucks (8,500 – 10,000 lbs. GVWR)"

I am a tax professional, and agree, you're correct - $2,000 credit applies for 2023 Rivian deliveries. I hadn't spent extensive time searching for the definitions (briefly looked, but didn't have much luck), and was thinking they were basing it on the EPA definitions (which would make it a truck), but that code section clearly defines it as a light-duty passenger vehicle.

It's very annoying, but still worth the extra $3,000 to have my Rivian - especially since I was happy with the trade in value they gave me, which could easily have gone down by 3k before 2024.

 

[gokcabaga]

Hummer EV has an even bigger GVWR, 10550, but if private they don't get any more than the Rivian. If commercial seems they would fall under the Medium Duty column to get $4k this year or $12k next year!

 

[teartags]

Well bollocks. So I miss out on $3k by 30 lbs. or 2-3 months? Imma maybe go for the passenger vehicle definition and ask for forgiveness later if it comes up....

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