Hi @pr8993 ,
1. If your filing status is Single or Married Filing Separately and your MAGI/AGI exceeds $150,000 in 2023, you cannot take the credit in that year but you can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
2. The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. Your tax liability is calculated first then IRS applies all payments (withholdings ) paid through the filing period and calculates balance due or refund due (if you paid more than your tax liability).
3. In Colorado , the incentive comes in the form of a reduced tax bill and possibly a tax refund depending on your personal tax situation. Beginning on July 1, 2023, the Colorado EV tax credit increases to $5,000 for vehicles with MSRP up to $80,000.
In 2024, EV shoppers will have the option to apply their federal tax credit as a rebate instead, providing immediate savings off the purchase price of an EV.
For more details regarding the EV credits for Colorado and Federal , please visit the following links:
Truck Credits for Electric and Plug-in Hybrid Electric Vehicles
Credits for New Clean Vehicles Purchased in 2023 or After
Thank you and good luck!
