Alert

December 9, 2016

Colorado Department of Revenue Issues Innovative Motor Vehicle Tax Credit Election Statement

On December 6, 2016, the Colorado Department of Revenue ("DOR") issued an Innovative Motor Vehicle Tax Credit Election Statement to facilitate a consumer's election to transfer the tax credit to the entity that finances the purchase or lease of a qualifying vehicle. The DOR developed the Election Statement under the authority of HB16-1332 which, effective June 6, 2016, changed Colorado's innovative vehicle tax credit from a credit amount based on the battery capacity of the vehicle to a fixed credit amount for qualifying vehicles, and allows the purchaser or lessee of a qualifying vehicle to transfer the tax credit to the entity that finances the purchase or lease.

If a consumer elects to transfer the tax credit to the financing entity, the entity must credit the consumer's account the full value of the tax credit, minus an administrative fee not to exceed $150. The financing entity must file the completed Election Statement with the DOR within 30 days of the purchase or lease and with the financing entity's income taxes for the year in which the motor vehicle is purchased or leased.

The DOR has advised that electronic reporting for financing entities, any relevant proposed rules, and official guidance are still in development.

  2016 CO HB 1332 - Enrolled Version
  Election Statement