What is the current assessment of the likelihood of Tesla vehicles again qualifying for the the $7,500 US federal government tax credit or possibly $10,000 if including made in America provision? What purchase/pickup date would one have to have to qualify for the credit? I've seen various thoughts on whether that would be retroactive to late May, the date the legislation passes, or not until January 1, 2022. Assuming it could go into effect in July/August (passing this summer) why would anyone be purchasing a car now unless literally have nothing else to drive, his or her tax liability won't require the credit, certain it will take months to get the car with the increased demand the credit will drive, and/or Tesla will generally raise the price to offset much/all of the credit? I am currently in the 8 - 12 week window (placed M3 order at end of May) and want the car now but can't imagine my frustration if I had waited a couple of weeks/month and would have had a massive tax benefit.
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2021 EV Tax Credit
- Thread starter DLK1974VA
- Start date
t.e.s.l.a_dude
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This is the latest situation on the EV tax credit after yesterday's bill. They are planning to get the reconciliation done by Thanksgiving, fingers crossed but there will be certainly a lot of back and forth on this one:
www.voltequity.com
The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
www.voltequity.com
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Wait...This is interesting. So the credit (at least the base $7,500 of it) *is* retroactive for cars purchased in 2021 but is only *refundable* for cars purchased in 2022 – meaning you could still see a significant increase to your 2021 tax refund depending on your income/circumstances.This is the latest situation on the EV tax credit after yesterday's bill. They are planning to get the reconciliation done by Thanksgiving, fingers crossed but there will be certainly a lot of back and forth on this one:
The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
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The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
www.voltequity.com
Guys - If you read this article, it indicates that the $7500K tax credit would retroactive for Tesla bought after May 24th 2021. Is that true?
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The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
www.voltequity.com
The confusing para:
This cap is eliminated retroactively for vehicles sold after May 24, 2021 (Chairman's Mark, p. 30). This means that any cars sold by GM and Tesla after May 24, 2021 will be eligible for up to a $7,500 tax credit. In sum: the 200,000 cap removal would be retroactive and applied to Tesla cars bought after May 24, 2021. A $7,500 tax credit would apply to 2021 taxes that are filed in 2022, so buyers would receive the credit when they file taxes in 2022.
So is it a good idea to take the delivery in Dec. or continue with hold till Jan 2022. Any suggestion?
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This is the latest situation on the EV tax credit after yesterday's bill. They are planning to get the reconciliation done by Thanksgiving, fingers crossed but there will be certainly a lot of back and forth on this one:
The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
That image they use is pretty out of date. There's lower income limits and the price for qualified EVs are now $80K and $55K in the house version(which is briefly mentioned in the text below but folks are going to assume the chart is correct when it is very wrong).
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This is an interesting situation. I wonder if it simply removes the 200,000 cap from the previous credit rules for 2021, with the new credit rules beginning in 2022.The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
The confusing para:
This cap is eliminated retroactively for vehicles sold after May 24, 2021 (Chairman's Mark, p. 30). This means that any cars sold by GM and Tesla after May 24, 2021 will be eligible for up to a $7,500 tax credit. In sum: the 200,000 cap removal would be retroactive and applied to Tesla cars bought after May 24, 2021. A $7,500 tax credit would apply to 2021 taxes that are filed in 2022, so buyers would receive the credit when they file taxes in 2022.
So is it a good idea to take the delivery in Dec. or continue with hold till Jan 2022. Any suggestion?
This would mean Model S and M3P purchases in 2021 would qualify for $7500 even though those same cars purchased in 2022 will not qualify for anything due to the price cap on the new set of rules.
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The Tesla EV Tax Credit
The Clean Energy Act for America would have a positive impact on Tesla by making most Tesla cars eligible for an $8,000 (House version) or $10,000 (Senate version) refundable tax credit and handicapping Chinese EVs from entering the US market. However, Tesla does not employ unionized labor, so...
The confusing para:
This cap is eliminated retroactively for vehicles sold after May 24, 2021 (Chairman's Mark, p. 30). This means that any cars sold by GM and Tesla after May 24, 2021 will be eligible for up to a $7,500 tax credit. In sum: the 200,000 cap removal would be retroactive and applied to Tesla cars bought after May 24, 2021. A $7,500 tax credit would apply to 2021 taxes that are filed in 2022, so buyers would receive the credit when they file taxes in 2022.
So is it a good idea to take the delivery in Dec. or continue with hold till Jan 2022. Any suggestion?
No.... just more misinformation.
The latest House bill is drastically different.... which hasn't even passed yet and passing the Senate is a much bigger obstacle.
Also CBO needs to calculate a cost/score. My loose estimate - if 1M Teslas are produced each year that's $7.5B refundable tax credits per year just for Tesla buyers and if this bill last 10+ years... that's $75B alone. In the past, costs were capped at 200K units (per manufacture)... now the costs are astronomical because there are no limits until we hit 50% of new sales (or 10 years).
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In the past, costs weren't capped at 200k units per manufacturer. Once a manufacturer hit 200k units sold, their credits were gradually reduced over the following year. By ramping up production in the final year, Tesla was able to greatly exceed 200k vehicles which received all or part of the $7500 tax credit.
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You are correct... they did ramp down to 50% for two quarters, then 25%, etc.
They were not exactly hard cap, my bad.
With the current bill, we don't have any such limits. Only lower income limits and new EV MSRP/price limits. It is significantly more expensive.
We should completely nuke any talk of retroactive credits. The cost of the EV section will freak out politicians when they see the CBO estimate.
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Don't worry about the costs. Biden says they are somehow all covered
Tax Elon 10% to pay for our EV tax credit. Problem solved.
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Or go the way of the dodo when Congress figures out the tab (hopefully not a global depression before they see the bill)... Just like that beloved "Home Affordability Act" no one wants credit now. Not Bill Clinton for sure, even though he signed it.
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I'm seeing about the same amount as mid-October so no real change. I'm on Discord channels that monitor the inventory (which is how I found the demo MYLR 3 weeks ago) and there used to be 50 M3SR+ dumps in a day. And random some locations get an inventory dump of cars... like the 8+ M3LR in Tampa which all sold out in a day.
MYLR cars still only last 5 minutes or less. They are snatched up instantly. All delaying does is allow those who don't want to wait to get their cars earlier. The demand is still insane. If the tax credit gets passed... the wait times will be long for those who unhold.
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