Low Income Tax Payer for the $7500 Federal Tax Credit

Discuss here where you plan on buying a Volt, good and bad dealers as well as how to get rebates and incentives for the Volt!
Eric
Posts: 5
Joined: Fri Jul 13, 2012 8:28 am
Location: Colorado

Re: Low Income Tax Payer for the $7500 Federal Tax Credit

Postby Eric » Sat Jul 14, 2012 11:32 am

"So how does the tax rebate calculate out when you lease a Volt?"

That's a great question. We just leased our 2012 Volt using Ally Smartlease. The $7500.00 credit is not obvious anywhere in the lease agreement. But I trusted the dealer's word that it was factored into the lease -- a trust that was based on our attractive $299.00 lease payment (39 month lease). As I was signing the lease I did ask the dealership's finance guy where the credit was reflected in the lease agreement. He was uncertain, pointing to the most likely bucket (rebates and non-cash credits), but he did volunteer to look into it. I shoud have asked him to do the research, but I didn't pursue it -- I was very happy with my lease payment. The "Rebates and non-cash credits" bucket in my lease agreement shows an amount of $5045.00 -- admittedly not the $7500.00. I should also say that the $7500.00 credit was not "taken of the top". Our agreed-upon price ($42188.61) was in fact the number included in the lease agreement as the cost of the vehicle. (It wasn't reduced by $7500.00.) In retrospect, it's clear that the Chevy finance guy should have 100% known how/where the credit was applied. And I should have pressed him on it. I suspect that Ally may be passing on part of the credit, but also keeping a portion of it.

keninca
Posts: 2
Joined: Sun Oct 28, 2012 1:08 pm

Re: Low Income Tax Payer for the $7500 Federal Tax Credit

Postby keninca » Sun Oct 28, 2012 1:57 pm

The rebate is added to the residual value reducing the amount of principal you have to repay.

The Credit Union Leasing of America web site gives a 2013 Volt 49% residual value after 3 years.

In my case, I had a residual value of 66.7% of the purchase price on a 3 year lease (the 49% of Purchase Price + $7,500).

Check your residual value percentage by dividing the the residual value by the $42,188.

Ken

nyharvey
Posts: 1
Joined: Tue Mar 20, 2018 9:24 am

Re: Low Income Tax Payer for the $7500 Federal Tax Credit

Postby nyharvey » Tue Mar 20, 2018 9:36 am

The Federal Tax Credit for the Volt is actually an offset. In other words what ever the actual number is, it will offset the equal amount of US Federal Income Tax. The actual offset value is kinda complicated and based upon the sales of the vehicle and the plug-in offset. Full EV's are calculated differently for the Federal Tax Credit. In my state, NY, I was able to offset my final price of a 2017 Volt by a direct NYS payment of several thousand dollars . The matter of a charger and charger station is more complicated. If you have some business and use the Volt, than the charger and charger station are a partial deduction based upon a formula.


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