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2020 Tax Credit - Slight loophole in CO for early January?

Mach-E VLOG

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This is specifically for Colorado, but I thought I'd post it here since other states/governments may have similar loopholes.

Of course, I'm not a tax expert, so I may be wrong about this. But from what I'm reading in the Colorado tax code, if we enter into an agreement at the very end of December but take ownership in the first few days of January, we may still be able to qualify for the $4,000 Colorado EV tax credit in 2020 (it drops to $2,500 in 2021). It could give us just enough wiggle room if our Mach-E's arrive right around the cutoff. I'm going to ask an tax accountant I know.

Here is the info I am basing this on (from Colorado EV tax credit website):


The credit is determined, in part, based upon the tax year that includes the date of purchase, lease, or conversion. For the purchase or lease of a qualifying motor vehicle or truck, the date of purchase or lease is the date the purchaser or lessee enters into a legally binding purchase or lease agreement, so long as the purchaser or lessee takes possession of the motor vehicle or truck within 10 days of that date. If the purchaser or lessee does not take possession of the motor vehicle or truck within 10 days of the execution of the purchase or lease agreement, the date of purchase or lease is the date the purchaser or lessee takes possession of the motor vehicle or truck.
 

solarmoo900

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I've thought about this a lot too for the $7500 but the problem will be is, assuming that there are no test vehicles and you are test driving the car your gonna buy, you'd have to enter an agreement to buy a car that you've never been in.

I really would love that tax credit for this year but can't imagine the dealer would agree to paperwork with a promise that they might cancel if I decide to back out
 
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Mach-E VLOG

Mach-E VLOG

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I've thought about this a lot too for the $7500 but the problem will be is, assuming that there are no test vehicles and you are test driving the car your gonna buy, you'd have to enter an agreement to buy a car that you've never been in.

I really would love that tax credit for this year but can't imagine the dealer would agree to paperwork with a promise that they might cancel if I decide to back out
I'm hoping we do get to test drive something in December. But I have also talked to my dealer and they said they would gladly accept the car if I canceled. They are desperate to get Mach-E's to sell.
 

MattG

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That’s good to know, thanks! Not sure I could bring myself to do that though...hopefully it arrives sooner!
 



 









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