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Last week we received our 2018 federal tax refund that included the $4,543 Kia PHEV tax credit. Feels good to finally have the last part of our Niro purchase completed.
 

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It's funny how does the US owners has to get the credit by them self and on their own. In Quebec, we have 2 tax credit on our PHEV and EV.s by our provincial and federal government, and they are deducted directly on the sale price at the dealer. Plus, the dealer takes the "lead" on the money and they get paid after.
 

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Yah, our government makes us work really hard for our $ here in the lower 48! ;-)
 

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It's funny how does the US owners has to get the credit by them self and on their own. In Quebec, we have 2 tax credit on our PHEV and EV.s by our provincial and federal government, and they are deducted directly on the sale price at the dealer. Plus, the dealer takes the "lead" on the money and they get paid after.
Yeah, if we lease (as I did) it comes straight off the price of the car. If we purchase, you have to claim it on your end of year tax return AND you have to have a tax liability at least as much as the credit to get the full amount. If the credit was the max of $7500, but you only owed $5000 in federal tax, you'd only get $5000 for the credit and the remaining $2500 would not be carried over to the following year.
 

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Yeah, if we lease (as I did) it comes straight off the price of the car. If we purchase, you have to claim it on your end of year tax return AND you have to have a tax liability at least as much as the credit to get the full amount. If the credit was the max of $7500, but you only owed $5000 in federal tax, you'd only get $5000 for the credit and the remaining $2500 would not be carried over to the following year.
Just out of curiosity, also a question that I have been thinking for quite some time, I would imagine anyone that is looking at purchasing the Niro EV or PHEV probably would have tax liability more than a few grand and would get the full benefit of the federal tax rebate?
 

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Just out of curiosity, also a question that I have been thinking for quite some time, I would imagine anyone that is looking at purchasing the Niro EV or PHEV probably would have tax liability more than a few grand and would get the full benefit of the federal tax rebate?
fyi,

Withdrawing 50k from a retirement account creates a ~5k tax liability. Useful if your other income doesn't.
 

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Just out of curiosity, also a question that I have been thinking for quite some time, I would imagine anyone that is looking at purchasing the Niro EV or PHEV probably would have tax liability more than a few grand and would get the full benefit of the federal tax rebate?
I'm not a CPA, but I think the short answer is no. If your total taxes are only $2,000, and your PHEV credit is 4,500, you can actually only utilize $2,000 of it. Additionally I don't believe there is any possibility of carry over to another year.
 

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I'm not a CPA, but I think the short answer is no. If your total taxes are only $2,000, and your PHEV credit is 4,500, you can actually only utilize $2,000 of it. Additionally I don't believe there is any possibility of carry over to another year.
Correct.

A lease wherein the dealer gets the credit and lowers your cost by the same amount is a workaround. So is buying a used car as market forces push the seller to reduce the price by a similar amount as the credits.
 

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Just out of curiosity, also a question that I have been thinking for quite some time, I would imagine anyone that is looking at purchasing the Niro EV or PHEV probably would have tax liability more than a few grand and would get the full benefit of the federal tax rebate?
Yes, you need a tax liability equal to or higher than the EV tax credit. Usually not a problem for the majority of people that can afford such a vehicle in the first place, but does need to be considered. And of course, if you lease you get the entire tax credit as a price reduction on the car, without needing to have any sort of tax liability.
 
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