$7.5K FTC Still On If I Order Now?

[lkstaack]

I reserved a M3 27 months ago and received an invitation to design a model five days ago. The designer indicates that I am eligible to receive a $7,500 Federal tax credit. However, my understanding is that I will only be eligible for that amount if 1) Tesla hit the 200k mark after 01 April, and 2) I register my new M3 before 30 September. Are early registers guaranteed to receive their car prior to 30 September if they order now?

If I can get the full tax credit, I will order now. Otherwise, I'll wait until they sell the standard battery $35K model.

 

[Topher86]

All indications is that the 7.5k tax credit will last until Dec 31 2018, so if you configure now, you should have a 2-4 month estimate for delivery, which would get you the full tax credit. Don't forget, it decreases to $3750 credit from Jan 1 - June 31 2019, so you could possibly purchase the standard range with a $3750 credit

 

[Petra]

If Tesla delivered their 200,000th car in the US in the second quarter of 2018 (Apr.-Jun.), then the tax credit will be cut in half starting in the 4th quarter of 2018. However, if Tesla delivers the 200,000th US car in July (or any time in Q3, really), then the full tax credit will be available for deliveries through the end of calendar year 2018. At this point, nobody outside of Tesla knows for sure when or if the 200,000th car has been delivered--it's too close to call with the information that's available.

That said, I'm also inclined to think that Tesla, who is in total control of the delivery process, wouldn't blow this and that the full credit will be available until the end of the year... Then again, it's Tesla. *shrug*

*edit* As for your last question, I have a day 1 online reservation, am a current owner, and confirmed my order for a Performance Model 3 last Tuesday. I received an Aug.-Oct. delivery timeframe so, no, there's no guarantee.

 

[Trevor B]

I reserved a M3 27 months ago and received an invitation to design a model five days ago. The designer indicates that I am eligible to receive a $7,500 Federal tax credit. However, my understanding is that I will only be eligible for that amount if 1) Tesla hit the 200k mark after 01 April, and 2) I register my new M3 before 30 September. Are early registers guaranteed to receive their car prior to 30 September if they order now?

If I can get the full tax credit, I will order now. Otherwise, I'll wait until they sell the standard battery $35K model.

Not sure where to start ... but you need to do a lot of reading.

 

[EricUSC]

There will be a lot of angry customers if Inside EV's prediction is true: Why We Believe Tesla Passed 200k U.S. Sales in June

 

[TexasEV]

I reserved a M3 27 months ago and received an invitation to design a model five days ago. The designer indicates that I am eligible to receive a $7,500 Federal tax credit. However, my understanding is that I will only be eligible for that amount if 1) Tesla hit the 200k mark after 01 April, and 2) I register my new M3 before 30 September. Are early registers guaranteed to receive their car prior to 30 September if they order now?

If I can get the full tax credit, I will order now. Otherwise, I'll wait until they sell the standard battery $35K model.

Your understanding is not correct. Read any of the dozens of posts here explaining how the phaseout works, or Google it.

 

[lkstaack]

All indications is that the 7.5k tax credit will last until Dec 31 2018, so if you configure now, you should have a 2-4 month estimate for delivery, which would get you the full tax credit. Don't forget, it decreases to $3750 credit from Jan 1 - June 31 2019, so you could possibly purchase the standard range with a $3750 credit

If Tesla delivered their 200,000th car in the US in the second quarter of 2018 (Apr.-Jun.), then the tax credit will be cut in half starting in the 4th quarter of 2018.

Your understanding is not correct. Read any of the dozens of posts here explaining how the phaseout works, or Google it.

Lol. Yes, there are dozens of posts, but they do not agree with each other. Consider the posters on this thread.

One reports that the tax credit will last until the end of the year and another until the end of September. My understanding is that the credit will last through the end of the quarter preceding the quarter with the 200k car. If that is the case, and Tesla reached 200k in June (3rd Qtr), then the credit will be in effect until the last day of the 4th Qtr (30 September).

If that is incorrect, please point out the incorrect assumptions.

 

[Petra]

Lol. Yes, there are dozens of posts, but they do not agree with each other. Consider the posters on this thread.

One reports that the tax credit will last until the end of the year and another until the end of September. My understanding is that the credit will last through the end of the quarter preceding the quarter with the 200k car. If that is the case, and Tesla reached 200k in June (3rd Qtr), then the credit will be in effect until the last day of the 4th Qtr (30 September).

If that is incorrect, please point out the incorrect assumptions.

June is in Q2, not Q3, and Q4 covers October-December. September 30th is in Q3.

The full $7500 remains in effect for the quarter in which 200k is reached, plus one additional quarter. After which, the credit is halved for two quarters, then halved again for a final two quarters. This means that if Tesla hit 200k in June, then the credit is halved for deliveries starting in Q4. If Tesla hits 200k in July, then the full credit will be available for deliveries through the end of the year. Nobody actually knows for certain whether #200k was delivered in June or will be/has been delivered in July--we'll have to wait for some sort of announcement.

 

[markb1]

Lol. Yes, there are dozens of posts, but they do not agree with each other. Consider the posters on this thread.

One reports that the tax credit will last until the end of the year and another until the end of September. My understanding is that the credit will last through the end of the quarter preceding the quarter with the 200k car. If that is the case, and Tesla reached 200k in June (3rd Qtr), then the credit will be in effect until the last day of the 4th Qtr (30 September).

If that is incorrect, please point out the incorrect assumptions.

The last day of the 4th quarter is December 31. But otherwise correct. The full credit will either last until the end of Q3 or the end of Q4, depending on when Tesla makes their 200,000th US delivery. Only Tesla knows for sure when that is, and they aren't saying anything about it, yet.

 

[lkstaack]

We are talking about the U.S. Fiscal year, right? If so, the first quarter begins 01 October and ends 30 September of the following year. Where are you seeing that the 1st quarter begins in January? What Is the Current Fiscal Year?

 

[Petra]

We are talking about the U.S. Fiscal year, right? If so, the first quarter begins 01 October and ends 30 September of the following year. Where are you seeing that the 1st quarter begins in January? What Is the Current Fiscal Year?

Calendar year, as mentioned in my first post.

 

[markb1]

We are talking about the U.S. Fiscal year, right? If so, the first quarter begins 01 October and ends 30 September of the following year. Where are you seeing that the 1st quarter begins in January? What Is the Current Fiscal Year?

Some companies do it differently, but Tesla defines Q1 as starting on January 1st.

 

[R.S]

There will be a lot of angry customers if Inside EV's prediction is true: Why We Believe Tesla Passed 200k U.S. Sales in June

Sadly it would also not be totally out of character for Tesla...

But I still think that they didn't deliver 200k. It's too much money, even with their massive backlog they can't just brush over 3 months of full credits raising the average transaction price by several thousand dollar.

 

[lkstaack]

There will be a lot of angry customers if Inside EV's prediction is true: Why We Believe Tesla Passed 200k U.S. Sales in June

Yes, and the primary reason I am still on the fence about purchasing a M3. If Tesla reached 200k in June, the $7.5k FTC expires on 30 September. Despite putting down $1k 28 months ago, my uncompleted design window indicates delivery in 3-5 months. Meaning, I will probably not receive the full FTC. A $35K Tesla with $10K state and federal tax credits was the major motivator for me to put down my $1k. Since then, the $35K M3 became a $44K M3. Now, it seems tax credits will go down to $6.25k. If that is the case, I'll continue to wait for the standard battery model.

 

[Uncle Paul]

There is also a bill going through that would extend the FTC for up to 10 years.

There is no guarantee what will happen with the Federal Government.

Tesla will do what they can to get as many credits for their customers, but they still need to follow all the rules.

 

[Phillyasian]

It would also be helpful in calculations to see what your potential Federal Tax Liabilities for Tax Year 2018 would be.
Here is a calculator will quickly give you in information.
Yearly Federal Tax Calculator 2018/2019 | 2018 Tax Refund Calculator

Bottom line is if you are file Single and make under $45K or File jointly and make under $60K you don't need to worry about the full Federal EV Tax Credit.

 

[xyeahtony]

Tesla has been stockpiling Model 3s. There have been reports of people ordering in the last few days and having delivery scheduled in July.

 

[vigge50]

Maybe it’s just not updated or Tesla haven’t reach 200k yet because on this site EPA haven’t write any date yet for when the federal tax credit will be cut.

Federal Tax Credits for Electric and Plug-in Hybrid Cars

 

[ewoodrick]

It is a whole lot easier to go to the source of the credit, the IRS.
Plug In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service
It is calendar year
It is far vehicles built since Dec 31, 2009.
It includes a phase out that starts the second quarter after hitting 200,000.

 

[Waiting4M3]

I think Tesla has been stock piling M3 (11k) at the end of June to avoid delivering 200k cars in the US in June. I think they're successful since it's easy to just hold off selling cars. Also InsideEV's estimate only counted for <2k M3 deliveries in Canada, while we have reports that store in Toronto alone was doing 200 deliveries per day for 2 weeks in June. It's likely Tesla has sent 5000 M3 to Canada instead of the <2000 that InsideEV counted. Also Europe is showing higher than normal MS/X deliveries, diverting from US. Both of these combined could subtract several thousand deliveries from within US.

If Tesla hits 200k US deliveries in July, this means that the following FTC calendar should apply:

Q3-Q4 2018, $7500 off
Q1-Q2 2019, $3750 off
Q3-Q4 2019, $1875 off

If you order now you should get delivery estimate of 3-5 months, which should put you in Nov and should qualify for $7500 off.