Anyone know when/if there will be the $7k tax credit for ordering a new Tesla ?

[DougC20]

Anyone know when/if there will be the $7k tax credit for ordering a new Tesla ? I am axiously awaiting to get my first Tesla, but do not want to loose out on the $7k tax credit (if it happens). Anyone have any credible info on when this might get approved by Congress & POTUS ? thanks !

 

[Tam]

Anyone know when/if there will be the $7k tax credit for ordering a new Tesla ? I am axiously awaiting to get my first Tesla, but do not want to loose out on the $7k tax credit (if it happens). Anyone have any credible info on when this might get approved by Congress & POTUS ? thanks !

It was introduced last June in 2020 but was rejected.

It's now re-introduced in 2021 as HR 848 and is not rejected so far.

I think it needs to survive the US House Ways and Means Subcommittee on Select Revenue first then go to the House, then the Senate, then the President then you'll see your $7,000 after that.

If it survives the process long enough, I think it's good until the end of 2022 then if it's not approved, it'll have to be re-introduced in 2023.

Lately, the government has worked quite fast: 100 million Covid-19 vaccine injections were projected for 100 days from Biden's inauguration but the goal was achieved in just 58 days so you don't have to wait until 2023 for the reintroduction of the Green bill.

 

[DougC20]

thanks any restrictions in the bill - such as will it be retroactive and if so to when (i would hate to loose out on the $7k for not waiting to take delivery) or annual salary restrictions (if you earn over $XX,XXX you dont qualify).

thx!

 

[NikolaTs]

I think there're still a lot of unknowns. You can read the actual language of the proposed bill here GREEN Act of 2021 (H.R. 848) , but my understanding is this is just a proposed version, which hasn't been negotiated or voted on yet. And it likely won't look exactly like this after it's chewed up and spat out the DC machine months later. The section on electric vehicles is Title IV, section 401.

To answer your questions, I haven't see anything in there saying that it would be retroactively applied to purchases before the bill passed. But who knows... here's the section about applicability of dates "In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the GREEN Act of 2021—"

No income limit or car $ value cap from what I've seen (assuming you at least have a tax liability of $7k to take advantage of the credit).

I saw some rumormill type of article recently https://www.washingtonpost.com/us-policy/2021/03/22/infrastructure-biden-drug-reform/ stating that Biden will be pushing an infrastructure bill with some climate initiatives in it, so maybe this bill and his infrastructure bill will be combined... but really your guess is as good as anyone's unless they are directly speaking to the lawmakers.

 

[NikolaTs]

actually just re-read that bill, there's a new section for used EVs, which has an income and $ value of the used vehicle limit/cap. But AFAIK no limits on new EVs

 

[mtx450]

Great discussion here. I'm curious as well, but not banking on it since it seems so far away (if at all). We can all agree that loosing out on a $7k credit would suck, but you gotta break some eggs to make an omelette ya know? We're always going to be loosing out on something and at some point, you just gotta buy the damn thing.

 

[NikolaTs]

Great discussion here. I'm curious as well, but not banking on it since it seems so far away (if at all). We can all agree that loosing out on a $7k credit would suck, but you gotta break some eggs to make an omelette ya know? We're always going to be loosing out on something and at some point, you just gotta buy the damn thing.

Agreed. I'd love to find a way to get a $7k discount on one. Plus my state has a $2.5K discount on sub-$50K EVs that's expiring this year, so if I could line it up perfectly it would drop the price of a 49K EV to 39K... but it's impossible to know when to pull the trigger.

The other aspect of this proposed bill (and similar past bills) is that there's usually a limit of only a few hundred thousand cars delivered that can receive this credit after the bill passes before the credit phases out or ends ( per manufacturer or is it per model? I don't remember exactly). With Tesla ramping up delivery of vehicles into the 100s of thousands, there's a slim chance if you wait till the bill passes to order, then depending on the demand and delivery delays for the configuration you chose you might have missed out on the window when the credit was active by the time you take delivery. I'd think that'd be unlikely, but that risk is still there.

All this has convinced me that there's no use in waiting, too many unknowns. Or if you do wait be okay with not receiving the credit in the end.

 

[NikolaTs]

For future visitors to this thread, I found this other model S forum thread had some good details:

Federal Tax Credit may be coming back for Tesla purchases

• The proposal extends the $7,500 tax credit (the existing reduction of paid federal taxes, up to that amount, etc.) beyond the 200,000 vehicle per manufacturer limit that’s currently imposed (and that GM and Tesla have already surpassed) to up to 600,000 vehicles at $7,000 (so $500 reduction from the first 200,000)
• The vehicles sold between the time a manufacturer hit the 200,000 limit and the time the bill is passed don’t count for the new extension, i.e. the additional 400,000 vehicles eligible for the $7,000 tax credit start counting at the time the bill is passed
• It is unlikely that the vehicles sold between the two timeframes set above will be eligible

Guess this is an interesting economic experiment of need for a car vs delayed gratification, and getting your tesla/marshmallows later Stanford marshmallow experiment - Wikipedia

 

[OCJeff]

One way I look at it (while waiting for the tax credit to be approved before placing my order) is the money you can save on payments between now and delivery date. Of course this is assuming you aren't already sinking payments into another vehicle while you wait on the Tesla. That's the benefit to me while I sit back and wait...

 

[NikolaTs]

One way I look at it (while waiting for the tax credit to be approved before placing my order) is the money you can save on payments between now and delivery date. Of course this is assuming you aren't already sinking payments into another vehicle while you wait on the Tesla. That's the benefit to me while I sit back and wait...

that's a great way to look at it too - that helps me wait.

 

[PNWLeccy]

*losing

 

[DanDi58]

There is a long thread here - easy to find with a search. Tax credit (Green ACT)