How long does the $7000 federal rebate last? Also, does anyone know if NJ gives a state rebate?
I think these rebates are always subject to chage, here is what I found for New Jersey and the reference link...
A tax rebate of up to $4000 is available for purchasers of an electric car
Electric car purchases are not subject to state sales tax
Electric car owners can use the state's HOV lanes without meeting the occupancy restriction
Oklahoooooma! 50% of full purchase price of all pure EVs as refundable tax credit. Residency required.
There are days when I hate you Americans :P
Still waiting for Canada to get in on the act.
how easy is it to get residency in oklahoma? i am in california at the moment. 50% off sounds too good to be true ;D
You have paid and filed state taxes in that state for the past year.
In order to get the full benefit your STATE tax burden must be 50% of the cost of the car.
Vawlkus, although there is no federal Canadian rebate program, some provinces do have rebate programs.
For example, Ontario has an $8500 EV rebate program. (In fact I was the very first person to make a qualifying purchase!)
Correct Doug, but it's time for our Fed to get off the pot...I can see no reason why the Feds can't help by eliminating the HST on EVs...serial hybrids excluded ;-)
You think the Tories are gonna do that? More likely they'll provide tax incentives for oil sands development...
LOL...Well, I sure don't think a clown like Ignatieff & his tax & spend libs will do anything...they're more interested in spending other people's money...
I agree, but we digress...
There may be a hidden problem in the tax credit. I read in another forum that the tax credit can be claimed only if you owe that amount in taxes. As an example, if you were going to receive a tax refund, then you would not collect any of the $7,500 of the EV-related credit. The $7,500 tax credit CANNOT be used to increase the amount of your refund.
This can be a little tricky. Those who pay estimated tax must have paid 80% of their taxes in advance. Failure do so results in a penalty. If attempting to take full advantage of the $7,500 tax credit, one must plan to owe a full $7500 in taxes, but at the same time, prepay 80% of your taxes in advance. Too much math for me. Hopefully, my accountant will help in this regard.
Yes and no. It comes off your tax liabilty. If you owe at least $7500 on your taxable income the credit would reduce the taxes owed to zero. If you had no taxes withheld through the year (in this case)you owe nothing. For example, your taxable income is $75000. After allowable deductions you're left with say $50000. The tax due on that amount is maybe $4000. You can only get a credit for $4000. If you had $5000 withheld through the year (or prepaid estimated taxes) you would get all of it back as a refund. Without the tax credit you would owe $4000 and get a refund of $1000. In other words you cant get back more than what you would owe Uncle Same before the credit. To take advantage of the full credit you obviously have to have a higher taxable income. So yes it will increase the size of your refund but only if you have had enough withheld or prepaid in the first place. Make sense or did I just totally confuse you?
To keep it simpler: forget about refund(s), pre-payment(s), witholding(s), etc.
Instead use the term "tax liability" (as Klaus already mentioned). It is the line on page 2 of Form1040 that says "This is your total tax"; for the 2009Form1040 it was line 60. You can reduce the amount of that tax liability by $7,500, but not below zero.Happy New Year! :-)
Reading your conversation about taxes it sound quite complex procedure in US. In here I didn't even need to do anything, just check that everything in pre-filled form are in place and (because of unusual circumstances this year) add one number and explanation in place clearly marked for it. Next year that part will be pre-filled for me so I again just need to check that everything is OK.
So in other words,its the US govt normal red tape that ends up costing the middle class more. Why cant they just give a $7500.00 rebate like a normal company would do. If we owe money fine then deduct,if we dont owe, then credit us for future tax payments !