Anyone familiar with Colorado House Bill 1331?
This is not directly Vectrix related, but definitely EV related. This morning on our local NBC news in Denver, CO they did a spot on electric motorcycles, specifically the Zero bikes (http://www.9news.com/life/programming/shows/mornings/article.aspx?storyid=135588&catid=229&GID=qIQ4ELa1T6Ayr/P49ujcCEz2jGmXo05xA...). During the story they mentioned about an amazing state tax credit in CO as it relates to the Zero. This is the direct quote:
"In Colorado right now, we actually have a really exciting tax credit as well that takes the $9,999 list price down to just $4,100 after the $4,800 state tax credit from Colorado and a $1,000 federal tax credit," said Pratt. "It's cheaper than the comparable gas bike, and a lot more environmentally friendly."
They did not explain how that rebate was calculated so I did a little searching today. I found this Colorado Dept of Energy website:
And this is the actual Bill signed into law:
If you look at the first referenced page above, it shows an 85% rebate on the purchase of an EV product or conversion product! What it does not explain what that 85% rebate is off of. It appears to me that the 85% is the rebate off the difference in cost of a comparable ICE vehicle. I looked around a bit more and found several articles about how a select few abused this law (before an amendment was made with a $6000 cap) with the purchase of a Tesla Roadster and were able to get $42,000 back from the State government! See this example:
So in this example with a new Vectrix assuming a $10,000 retail price and the comparable 250cc ICE scooter which retails for about $5000, leaves a difference of $5000. 85% off that is $4250 off. Add in the 10% Federal Tax credit that drops it another $1000, resulting in a final price of only $4750!!! This seems incredible. It also seems how they calculated the Zero price in the story above on 9news.com. They must be comparing the Zero to a $4500 ICE motorcycle.
Any tax professionals or law makers care to chime in on this?
I reposted Zero Motorcycles' press release here: Zero Motorcycles Offers All-New 2010 Zero DS and Zero S at Breakthrough Price of Just $4107 After Colorado Tax Credit