Colorado Tax Credits

[Spaceball1]

Obviously I’m in Colorado and have been digging into the tax credits here. I actually bought a used R1T in February but still have my order that I switched to an R1S for now. Anyway, thought I’d share some info I’ve learned regarding the new/upcoming Colorado tax credits.

Colorado Truck Credit PDF

Innovative Motor Vehicle Credit

As of July 1, 2023, the tax credit for light duty vehicles (8500 lb GVWR or less) is upped to $5k. Most people know this now. But Light duty trucks with GVWR above 8500 doesn’t go up to $5k until January 1, 2024. Word of caution to those expecting their R1 this year! no word yet that I can find if the dual motors will be the same GVWR or not.

Also note that with the Innovative truck credit there appears to be no price cap, which I found interesting. There is a note that the credit cannot be more than the MSRP difference between an equivalent ICE version of the truck (so a Tacoma/4Runner for us, I guess?).


So, in summary, if you’re in Colorado and like me have a binding agreement for purchase, you can maximize tax credits in the following ways:

• Purchase Jan 2024 or late: Get full $5k CO credit and amend Federal 2022 to get the $7500 federal credit.
• Purchase between July 2023 and January 2024: Binding agreement gets you the $7500 fed no matter what, but CO credit will be by old rules which is $2800 for the light duty truck above 8500 GVWR.

If you don’t have binding agreement, unfortunately you’ll be stuck with $80k price caps for the federal credit on any scenario.

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[Warmoth]

Starting 2024 you can transfer the CO credit to Rivian, instead of waiting to file your tax return.

 

[freshpow]

You sure about that? Pretty sure they both have the same GVWR and are both over 8500

 

[Mygrain]

You sure about that? Pretty sure they both have the same GVWR and are both over 8500

Correct. GVWR is 8532 pounds for all R1 vehicles to date (S, T, quad, dual).

By curious coincidence, setting the GVWR slightly over 8500 exempts Rivian from the US law that requires automakers to publish the US+Canadian percent content on the window sticker of every new vehicle.

 

[Ozmt]

The gvwr on my title is 8150. R1t quad

 

[Thedude]

The gvwr on my title is 8150. R1t quad

Interesting. That’s wrong but if the state takes it and uses it I guess that’s their problem.

 

[Spaceball1]

Starting 2024 you can transfer the CO credit to Rivian, instead of waiting to file your tax return.

Good ppint! I added that to the OP. Though, I did read it’s an option for the dealer to offer this, so may be up to Rivian if they want to deal with that.

You sure about that? Pretty sure they both have the same GVWR and are both over 8500

You are correct! With more research I do see the R1S has the same 8532 GVWR as the R1T (initial Google search gave me bad info). At least in quad setup. Curious if the dual will be the same as well. I’ve updated my OP to reflect this.

 

[waitingonanr1s]

The gvwr on my title is 8150. R1t quad

Edited after looking at another vehicle title.

I believe that's the actual empty weight of the vehicle (although Google shows 7,148) - my 2016 4runner shows 4,600 while the GVWR is actually 6,100.

 

[alextakesphotos]

Does anyone know if you can amend your CO taxes to claim the $2500 credit if you were on a binding contract? I took delivery just last week but I am post-price hike so I would not qualify for the 5k sadly.

 

[Spaceball1]

Does anyone know if you can amend your CO taxes to claim the $2500 credit if you were on a binding contract? I took delivery just last week but I am post-price hike so I would not qualify for the 5k sadly.

I have been wondering this as well, and I dug into it and cannot find a clear answer. I presume it may need to be something that you'd have to contact the DOR to get a clear answer on, unfortunately.

 

[zefram47]

Colorado is quite clear that you can only claim the tax credit for the tax year that you purchased in. Similarly, I took delivery in March, so I can't take advantage of the credit that went into effect on 1 July even though my purchase price was below $80k.

 

[alextakesphotos]

Colorado is quite clear that you can only claim the tax credit for the tax year that you purchased in. Similarly, I took delivery in March, so I can't take advantage of the credit that went into effect on 1 July even though my purchase price was below $80k.

So you are saying they don't take the binding contract into consideration like the IRS does?

I can only assume this is what you are referring to?

 

[alextakesphotos]

I have been wondering this as well, and I dug into it and cannot find a clear answer. I presume it may need to be something that you'd have to contact the DOR to get a clear answer on, unfortunately.

I am going to contact them just to be sure. I dont want to leave any money on the table thats for sure.

 

[Spaceball1]

Colorado is quite clear that you can only claim the tax credit for the tax year that you purchased in. Similarly, I took delivery in March, so I can't take advantage of the credit that went into effect on 1 July even though my purchase price was below $80k.

You should be able to get the $2800 credit, though. The $5k credit doesn't go into affect for Rivians until 2024 anyway, since they fall into the "over 8500 lb GVWR" anyway.

 

[Spaceball1]

I am going to contact them just to be sure. I dont want to leave any money on the table thats for sure.

Oh, BTW you don't have to worry about the price cap for Colorado Truck credit. Per my OP there is no price cap, so you should at least be able to get the $2800. The question is, can you amend 2022 and get the higher $3500 they had last year (plus get it quicker!) The $5k still has to wait until 2024 deliveries.

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