$7500 gov tax rebate for order placed last year?

[James2023y]

I ordered a model Y in August 2022, and I’m about to take delivery soon. Will I qualify for the $7500 gov tax rebate if my order date was in August 2022 rather than 2023?

The reason I’m a little confused because I was reading the California tax rebate thread, and it’s talking about using the original order date rather than delivery date.

Thanks if anyone has good information on this topic.

 

[evannole]

I don't know anything about California's rebate, but the $7,500 federal tax credit is entirely based on when you take delivery. So you should be good.

 

[Happy Hippo]

I agree. it depends on when you take delivery and you should be good. How were you able to delay it sooo long?

 

[ItsNotAboutTheMoney]

The taxpayer-specific part for the Federal Tax Credit depends on :
(1) Having Title to the vehicle: you can't claim for it until you have Title. (Not the title. So if the Title is issued and you don't yet have the paperwork you can still file).
(2) When you started using it (putting the vehicle into service): that determines the Filing year
(3) Your taxable income: there are now income limits
(4) Your tax _liability_ for the filing year in (2). It is still a non-refundable tax credit (i.e. reduces your liability, which cannot drop below $0). The "refund" change is that from 2024 dealers will be able to claim and pass on the $7.5k at time of purchase, but it's still _your_ claim. If you cannot claim the whole amount at filing time, you will have to pay back the difference. That is, getting the $7.5k at the dealer effectively decreases the amount of tax you paid. (Probably figuring out how they'll treat the advance claim on the tax form. Presumably a deduction on taxes paid.)
(Under the old rules there was also The purchase date: the quarter of purchase determined whether you were in phase-out and what phase-out period you were in. That's where paying in full in advance at the end of a quarter could make a difference. Now it doesn't).

 

[Ciaopec]

I ordered a model Y in August 2022, and I’m about to take delivery soon. Will I qualify for the $7500 gov tax rebate if my order date was in August 2022 rather than 2023?

The reason I’m a little confused because I was reading the California tax rebate thread, and it’s talking about using the original order date rather than delivery date.

Thanks if anyone has good information on this topic.

I believe it is a tax CREDIT and not a rebate. If you don't owe at least $7500 in taxes you will not receive the full amount.

 

[Happy Hippo]

I believe it is a tax CREDIT and not a rebate. If you don't owe at least $7500 in taxes you will not receive the full amount.

I never owe taxes, I always get money back but I don't qualify anyway for the income cap. I got mine late December for basically the same price minus the tax credit..ohh well..

 

[240vPlug]

Its a federal tax credit so it doesn't matter what state your in. State credits are totally different. Federal tax credit is based on when you actually take delivery and pay for (purchase) the vehicle. As was stated previously it is a non-refundable credit. That means it will only reduce your tax liability they will not actually refund you that amount of money. In order to take full advantage of the credit you need to have at least $7,500 in federal tax due for 2023. Otherwise the maximum you will receive is equivalent to the total amount of your tax liability. In other words if you owe $3,000 in federal tax you will only see $3,000 in benefit from the credit.

 

[house9]

California still hasn’t updated their documentation based on the new 2023 pricing:

- Can I apply for a rebate for my Tesla Model 3 or Tesla Model Y? | Clean Vehicle Rebate Project

I think the only reason the ‘order date’ was a factor was because they would still give the rebate for older (lower priced) orders that were delivered later on. Guessing this is no longer a factor with new purchases at the lower price.

California rebate has nothing to do with the Federal tax credit.

 

[ItsNotAboutTheMoney]

I never owe taxes, I always get money back.

It's your total tax liability for the year that matters, not your balance at filing time.

but I don't qualify anyway for the income cap. I got mine late December for basically the same price minus the tax credit..ohh well..

That's the relevant bit.
I

 

[kingkong5]

I never owe taxes, I always get money back but I don't qualify anyway for the income cap. I got mine late December for basically the same price minus the tax credit..ohh well..

Whether you get money back after filing your taxes isn't really the issue, it's your tax liability. You may have gotten $5000 back with your return, but if it's because your tax liability was $10,000 but you had $15,000 withheld from your paychecks then you did have a tax liability greater than $7500 and could get the credit. But the income cap, yes, that would possibly disqualify you from getting the whole credit.

 

[berkserk]

I ordered a model Y in August 2022, and I’m about to take delivery soon. Will I qualify for the $7500 gov tax rebate if my order date was in August 2022 rather than 2023?

The reason I’m a little confused because I was reading the California tax rebate thread, and it’s talking about using the original order date rather than delivery date.

Thanks if anyone has good information on this topic.

In your case, depending on how IRS defines order date vs purchase date you may or may not be eligible for tax credit.

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

Q8: If I purchase a new clean vehicle in 2022 that was made by a manufacturer that had already reached the manufacturer sales cap but it is not delivered until 2023, does the manufacturer sales cap still apply? (added December 29, 2022)

A8: Yes, the sales cap of 200,000 vehicles applies to vehicles sold before January 1, 2023. If you purchased a vehicle that is subject to the sales cap, it is not eligible for the credit regardless of when you place it in service.

 

[240vPlug]

I would talk to your accountant or tax professional and see what they say. I hear about so many folks who buy an EV and then are upset because they counted on getting 7500 and we're only able to get 3,000 or 5,000 ish out due to lower tax liability.

Income limits are AGI not gross income. You really need to talk to whoever prepares your taxes to get the correct answer for your specific situation.

 

[James2023y]

In your case, depending on how IRS defines order date vs purchase date you may or may not be eligible for tax credit.

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

Q8: If I purchase a new clean vehicle in 2022 that was made by a manufacturer that had already reached the manufacturer sales cap but it is not delivered until 2023, does the manufacturer sales cap still apply? (added December 29, 2022)

A8: Yes, the sales cap of 200,000 vehicles applies to vehicles sold before January 1, 2023. If you purchased a vehicle that is subject to the sales cap, it is not eligible for the credit regardless of when you place it in service.

Yes, this is the part I’m most concerned about. Does IRS treat order date the same as the purchase date?

 

[mjwojtukiewicz]

Its a federal tax credit so it doesn't matter what state your in. State credits are totally different. Federal tax credit is based on when you actually take delivery and pay for (purchase) the vehicle. As was stated previously it is a non-refundable credit. That means it will only reduce your tax liability they will not actually refund you that amount of money. In order to take full advantage of the credit you need to have at least $7,500 in federal tax due for 2023. Otherwise the maximum you will receive is equivalent to the total amount of your tax liability. In other words if you owe $3,000 in federal tax you will only see $3,000 in benefit from the credit.

It USED to be where it was deducted from your income on the front of 1040A

 

[evannole]

Yes, this is the part I’m most concerned about. Does IRS treat order date the same as the purchase date?

I mean, this is pretty clear, no?

"Q5. If I order a new clean vehicle in one year and don’t receive it until a subsequent year, when do I claim the credit? (added December 29, 2022)
A5. The new clean vehicle credit is claimed in the tax year that the vehicle is placed in service, meaning the tax year that includes the date the taxpayer takes delivery of the vehicle."

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

 

[mjwojtukiewicz]

I mean, this is pretty clear, no?

"Q5. If I order a new clean vehicle in one year and don’t receive it until a subsequent year, when do I claim the credit? (added December 29, 2022)
A5. The new clean vehicle credit is claimed in the tax year that the vehicle is placed in service, meaning the tax year that includes the date the taxpayer takes delivery of the vehicle."

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

2023 income tax

 

[berkserk]

If order date=purchase date then Tesla's orders before 1/1/2023 can become ineligible because of the 200,000 vehicles sales cap. See my prior post which quotes the IRS FAQ.

 

[house9]

If order date=purchase date

It does not.

See post above:

> The new clean vehicle credit is claimed in the tax year that the vehicle is placed in service

If you purchase a Tesla in 2023 and register it in 2023 then it will be eligible for 2023 Federal tax credit; But you might not be eligible depending on your income.

The only time you could possibly get into trouble is if you purchased the vehicle in 2022 but did not ‘place in service’ until 2023, in that rare case the vehicle would not be eligible.

—

The only ‘open’ question is the California rebate, documentation still has not been updated but it appears the issue there is just cost of vehicle which many models are now below the cut offs.

 

[mlkirch77]

I received my Model 3, LR in August of 2022. I'm a retired person in Orange County, California. Just had my taxes done by a CPA and I'm told I do not qualify for the $7500 credit because I didn't pay enough taxes. Anyone have any idea how to get this $$$. Guess it's my own fault, I thought of it as a rebate, not a credit. Maybe I can use it when I start taking my 401K out. Anybody know an answer?

 

[240vPlug]

I received my Model 3, LR in August of 2022. I'm a retired person in Orange County, California. Just had my taxes done by a CPA and I'm told I do not qualify for the $7500 credit because I didn't pay enough taxes. Anyone have any idea how to get this $$$. Guess it's my own fault, I thought of it as a rebate, not a credit. Maybe I can use it when I start taking my 401K out. Anybody know an answer?

There may be some California state incentives that you can take advantage of. Your CPA should be able to help there. If your talking about the federal rebate of $7,500 that's only if you took delivery after 1/1/2023. It sounds like, based on what your CPA told you, that even if you took delivery in 2023 you wouldn't be able to take advantage of it. You need to also have a tax obligation of at least $7,500 to take full advantage.