Colorado Tax Credits

[gokcabaga]

ask for forgiveness later if it comes up....

Yeah, all very confusing and details not accessible so a lot of people will be doing that. At the same time it will be a chunk of cash the state will be interested in, plus penalties/interest.

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[freshpow]

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.

Not a tax professional but I think the R1T qualifies as a "light-duty electric truck" while the R1S is a "light-duty passenger motor vehicle". Having trouble finding anything definitive from the state but found this on the Boulder County site:

" Vehicle Type: The passenger vehicle category includes sedan (4 door), coupe (2 door), convertible (CV), hatchback or lift back (3 or 5 door) station wagon (SW), passenger van (PV), and passenger utility (UP) or sport utility (SUV). The light truck vehicle category includes open bed pick up (PK) trucks and cargo vans (VN) with an empty weight of 16,000 lbs or less."

Perhaps someone who took delivery in 2022 and already received the state credit can weigh in. I want to say there were many who successfully received the "light-duty electric truck" rebate for their R1T.

 

[gokcabaga]

Not a tax professional but I think the R1T qualifies as a "light-duty electric truck" ....

I got to my conclusion just by staying within the text of that one statute. But especially for low quantity early adopters it wouldn't surprise me if gov't employees aren't also confused by it and grant whatever, even the $5k for 2023 under the other law, and I say more power to you if that ends up working. But as volumes increase, the more likely this gets scrutiny, maybe eventually goes before a judge etc. at which point there will be more clarity by everyone, at which point would the state go back after even the 2022 deliveries? Maybe, if enough money were involved.

 

[freshpow]

I got to my conclusion just by staying within the text of that one statute. But especially for low quantity early adopters it wouldn't surprise me if gov't employees aren't also confused by it and grant whatever, even the $5k for 2023 under the other law, and I say more power to you if that ends up working. But as volumes increase, the more likely this gets scrutiny, maybe eventually goes before a judge etc. at which point there will be more clarity by everyone, at which point would the state go back after even the 2022 deliveries? Maybe, if enough money were involved.

There is a difference between a passenger motor vehicle and a truck. Nowhere in the definition of a "light-duty truck" does it say anything about needing to be commercial vs. private.

 

[waitingonanr1s]

Not a tax professional but I think the R1T qualifies as a "light-duty electric truck" while the R1S is a "light-duty passenger motor vehicle". Having trouble finding anything definitive from the state but found this on the Boulder County site:

" Vehicle Type: The passenger vehicle category includes sedan (4 door), coupe (2 door), convertible (CV), hatchback or lift back (3 or 5 door) station wagon (SW), passenger van (PV), and passenger utility (UP) or sport utility (SUV). The light truck vehicle category includes open bed pick up (PK) trucks and cargo vans (VN) with an empty weight of 16,000 lbs or less."

Perhaps someone who took delivery in 2022 and already received the state credit can weigh in. I want to say there were many who successfully received the "light-duty electric truck" rebate for their R1T.

This was my initial interpretation as well, however, what you've posted applies to registration and titling.

Definitions used for the innovative truck credit are governed by C.R.S. 39-22-516.8, originally posted by @gokcabaga (https://codes.findlaw.com/co/title-39-taxation/co-rev-st-sect-39-22-516-8.html , note the title of the section).

Also, just because someone's credit of any type was paid out doesn't mean it was correct. Generally these issues only come to light in audits or if caught by automated analysis/matching processes.

 

[Warmoth]

Here's the Colorado statutes in relevance.

C.R.S. 39-22-516.8
(ee)
(I) (excluded because it pertains to prior to Jan. 1 2017).
(II) “Truck”, for tax years commencing on or after January 1, 2017, has the same meaning as in section 42-1-102 (108), C.R.S., and includes a hybrid truck, a light-duty passenger motor vehicle, and a bus, has a maximum speed capability of at least fifty-five miles per hour, is licensed or subject to licensing for operation upon the highways of the state, is new, not used, unless the truck is being converted, and is either:
(A) Titled and registered in the state; or
(B) Registered under the international registration plan and base plated in the state.

C.R.S. 39-22-516.8
(y) “Light-duty passenger motor vehicle” means a private passenger motor vehicle, including vans, capable of seating twelve passengers or less; except that the term does not include motor homes as defined in section 42-1-102 (57), C.R.S., or motor vehicles designed to travel on three or fewer wheels in contact with the ground.

 

[obababoy]

Just realized this now. As an active duty military member would I even qualify for the Colorado credit? My home of record is Vermont and I don't pay state taxes for them. I may be SOL here AND there...They have a 5000 credit and less stipulation on weights it appears, but one requirement says "registered in vermont".

 

[TollKeeper]

Just realized this now. As an active duty military member would I even qualify for the Colorado credit? My home of record is Vermont and I don't pay state taxes for them. I may be SOL here AND there...They have a 5000 credit and less stipulation on weights it appears, but one requirement says "registered in vermont".

It applies to where you reside and pay/file taxes at..

 

[obababoy]

It applies to where you reside and pay/file taxes at..

I reside here...With a Vermont drivers license and pay local/county/homeowner taxes here but no state income tax here OR in Vermont. Do you still think I would be eligible here?

 

[Warmoth]

Now the tricky part or tax acrobats, piecing it all together based on what Colorado has published.

We know that the R1S is greater than the weight allowed for a EV vehicle (non truck). So the information on the Innovative Motor Vehicle Credit does not apply. See: Income Tax Topics: Innovative Motor Vehicle Credit (colorado.gov) However, in the same PDF, it states " A light-duty passenger motor vehicle with a GVWR of more than 8,500 pounds may qualify for the innovative truck credit, rather than the innovative motor vehicle credit"

Now going to the Innovative Truck Credit, and couple it with the C.R.S. 39-22-516.8, we know that a "A light duty passenger motor vehicle is included in the definition of a "truck".

Now look at the Dept. Rev. PDF. See: Income Tax Topics: Innovative Truck Credit (colorado.gov). In there you will find the Credits Amount by Tax Year. This is broken into Light Duty Passenger/ Light Duty Truck/ etc. (See below)

The Light Duty Passenger is listed, but it's for vehicles with a GWR in excess of 8,500. This is where the R1S would fall. So $2,000 for 2023. The R1T is a light duty truck, so $2,800 for 2023.

 

[TollKeeper]

I reside here...With a Vermont drivers license and pay local/county/homeowner taxes here but no state income tax here OR in Vermont. Do you still think I would be eligible here?

Thats a loaded question.. If you dont file state taxes.. Then you are owed no refund.. Do you pay state taxes thru a payroll deduction?

It may seem trivial, but it really isnt. They use a state tax filing to verify residency. Otherwise people would be filing for the tax credit in all 50 states!

Then depending on where the Riv is titled at, you again my disqualify yourself from said rebate.

 

[gokcabaga]

Yes, C.R.S. 39-22-516.8(ee)(II) defines a "truck" but the more applicable definition is 39-22-516.8(1)(x) which defines the particular phrase tied to the $2800 rule.

(x) “Light-duty electric truck” means an electric truck with a gross vehicle weight rating less than or equal to ten thousand pounds but does not include a light-duty passenger motor vehicle.​

So for the R1T to be called a Light-duty electric truck means it cannot be called a light-duty passenger motor vehicle, and from (y) the only way I can see the R1T being ruled out of the light-duty passenger motor vehicle class is if it is not a private passenger motor vehicle.

But now we're arguing over what the law says like a bunch of lawyers, and even touching into interpretation questions like a judge would, e.g. does "private passenger motor vehicle" not imply "non-commercial passenger motor vehicle". Doing it over the internet no less, not gonna be productive.

 

[waitingonanr1s]

Now the tricky part or tax acrobats, piecing it all together based on what Colorado has published.

We know that the R1S is greater than the weight allowed for a EV vehicle (non truck). So the information on the Innovative Motor Vehicle Credit does not apply. See: Income Tax Topics: Innovative Motor Vehicle Credit (colorado.gov) However, in the same PDF, it states " A light-duty passenger motor vehicle with a GVWR of more than 8,500 pounds may qualify for the innovative truck credit, rather than the innovative motor vehicle credit"

Now going to the Innovative Truck Credit, and couple it with the C.R.S. 39-22-516.8, we know that a "A light duty passenger motor vehicle is included in the definition of a "truck".

Now look at the Dept. Rev. PDF. See: Income Tax Topics: Innovative Truck Credit (colorado.gov). In there you will find the Credits Amount by Tax Year. This is broken into Light Duty Passenger/ Light Duty Truck/ etc. (See below)

The Light Duty Passenger is listed, but it's for vehicles with a GWR in excess of 8,500. This is where the R1S would fall. So $2,000 for 2023. The R1T is a light duty truck, so $2,800 for 2023.

No both are light duty passenger vehicles per the statute, qualifying for the 2,000 credit.

(x) “Light-duty electric truck” means an electric truck with a gross vehicle weight rating less than or equal to ten thousand pounds but does not include a light-duty passenger motor vehicle.

(y) “Light-duty passenger motor vehicle” means a private passenger motor vehicle, including vans, capable of seating twelve passengers or less;  except that the term does not include motor homes as defined in section 42-1-102(57), C.R.S., or motor vehicles designed to travel on three or fewer wheels in contact with the ground.

 

[waitingonanr1s]

Yes, C.R.S. 39-22-516.8(ee)(II) defines a "truck" but the more applicable definition is 39-22-516.8(1)(x) which defines the particular phrase tied to the $2800 rule.

(x) “Light-duty electric truck” means an electric truck with a gross vehicle weight rating less than or equal to ten thousand pounds but does not include a light-duty passenger motor vehicle.​

So for the R1T to be called a Light-duty electric truck means it cannot be called a light-duty passenger motor vehicle, and from (y) the only way I can see the R1T being ruled out of the light-duty passenger motor vehicle class is if it is not a private passenger motor vehicle.

But now we're arguing over what the law says like a bunch of lawyers, and even touching into interpretation questions like a judge would, e.g. does "private passenger motor vehicle" not imply "non-commercial passenger motor vehicle". Doing it over the internet no less, not gonna be productive.

Yeah, ready for next year when everything is $5k. Glad I haven't had any clients take delivery of a Rivian yet. lol

 

[Warmoth]

No both are light duty passenger vehicles per the statute, qualifying for the 2,000 credit.

(x) “Light-duty electric truck” means an electric truck with a gross vehicle weight rating less than or equal to ten thousand pounds but does not include a light-duty passenger motor vehicle.

(y) “Light-duty passenger motor vehicle” means a private passenger motor vehicle, including vans, capable of seating twelve passengers or less;  except that the term does not include motor homes as defined in section 42-1-102(57), C.R.S., or motor vehicles designed to travel on three or fewer wheels in contact with the ground.

You could be right... part comes down to what is a truck. The cross reference is C.R.S. 41-1-102. It defines a truck as:

(108) “Truck” means any motor vehicle equipped with a body designed to carry property and which is generally and commonly used to carry and transport property over the public highways.

I can see this definition applying only to vehicles like a flat bed truck, etc., that is not commonly used to carry people over public highways.

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