California Tax Rebate ending for some...

[Spatters805]

Purchased my Tesla and waited for production. Picked up 2 days ago and have been living the dream since.

Thought I'd go to the California Rebate site to apply for my Rebate that Tesla clearly lists as an advantage to purchasing the car (they even calculate your "final price" by subtracting the Rebate and Tax Credit).

Found out that there are new income restrictions that disqualify you from the Rebate program. I now don't qualify and will not be getting the Rebate.

What's worse is that the $7500 Federal tax credit is not as straightforward as it seems either.

I think Tesla should update their advertising to notify buyers that they may not qualify for the rebate and/or credit.

To drop $100K thinking your effective cost is really $90K is not exactly truth in advertising if even the sales associates are telling you that.

Either way, I am going to enjoy the car but this is upsetting. If the point of the Rebate is to incentivize EV purchase and use for the environment, then what difference does it make what your income is? Why not base the Rebate on purchase and mileage driven in the first year. Seems to me the more you drive an EV the less greenhouse gases you emit.

Thoughts or comments?

 

[NikeWings]

The CA income restrictions were implemented over a year ago, and it's really our responsibility to research our purchase. Do you really make financial decisions based on a 25 year old geek in a showroom?

The Tesla site that estimates payments, also highlights the word Incentive as a link, along with a disclaimer that not everyone qualifies for the estimated payment displayed and they are for informational purposes only.

Yes, enjoy your car and in addition to the your other questions, you might add.......'why would CA add a road use tax to EV owners', since you may have missed that as well. Congrats on the car!!

 

[BerTX]

Texas rebates 100% of state income taxes to EV buyers.

And everybody else.

 

[Spatters805]

New The CA income restrictions were implemented over a year ago, and it's really our responsibility to research our purchase. Do you really make financial decisions based on a 25 year old geek in a showroom?

Well, of course I don't make decisions based on a 25 year old in showroom but I can admit that the advertisements and information given is a bit misleading.

I assume everyone who bought a Tesla on this forum didn't research the Rebate restrictions. I just got a rebate for my wife's Volvo XC90 T8 so i had no reason to believe the rebate was going to affect me a few months later.

A simple "income restrictions apply. Please check your state's rebate program" face up would make a difference.

If I spent my time seeking financial advice from 25 year sales geeks, I would probably qualify for the rebate because I'd likely be where they are financially.

 

[tenstringer009]

Not sure if you ordered your S online, but Tesla has been noting that the California incentive was subject to some limitations for a while now.

 

[azred]

Purchased my Tesla and waited for production. Picked up 2 days ago and have been living the dream since.

Thought I'd go to the California Rebate site to apply for my Rebate that Tesla clearly lists as an advantage to purchasing the car (they even calculate your "final price" by subtracting the Rebate and Tax Credit).

Found out that there are new income restrictions that disqualify you from the Rebate program. I now don't qualify and will not be getting the Rebate.

What's worse is that the $7500 Federal tax credit is not as straightforward as it seems either.

I think Tesla should update their advertising to notify buyers that they may not qualify for the rebate and/or credit.

To drop $100K thinking your effective cost is really $90K is not exactly truth in advertising if even the sales associates are telling you that.

Either way, I am going to enjoy the car but this is upsetting. If the point of the Rebate is to incentivize EV purchase and use for the environment, then what difference does it make what your income is? Why not base the Rebate on purchase and mileage driven in the first year. Seems to me the more you drive an EV the less greenhouse gases you emit.

Thoughts or comments?

There is nothing vague about the federal tax credit unless you don't understand tax credits. And if not, you should have a tax consultant because you are likely making some significant errors in your tax return.

 

[azred]

Texas rebates 100% of state income taxes to EV buyers.

And everybody else.

But that means the original poster would have to move to Texas.

 

[BerTX]

But that means the original poster would have to move to Texas.

Shh! Nobody from California has come up with that idea.

 

[No2DinosaurFuel]

Purchased my Tesla and waited for production. Picked up 2 days ago and have been living the dream since.

Thought I'd go to the California Rebate site to apply for my Rebate that Tesla clearly lists as an advantage to purchasing the car (they even calculate your "final price" by subtracting the Rebate and Tax Credit).

Found out that there are new income restrictions that disqualify you from the Rebate program. I now don't qualify and will not be getting the Rebate.

What's worse is that the $7500 Federal tax credit is not as straightforward as it seems either.

I think Tesla should update their advertising to notify buyers that they may not qualify for the rebate and/or credit.

To drop $100K thinking your effective cost is really $90K is not exactly truth in advertising if even the sales associates are telling you that.

Either way, I am going to enjoy the car but this is upsetting. If the point of the Rebate is to incentivize EV purchase and use for the environment, then what difference does it make what your income is? Why not base the Rebate on purchase and mileage driven in the first year. Seems to me the more you drive an EV the less greenhouse gases you emit.

Thoughts or comments?

It really doesnt matter if you get a few grand off if you are committed to buy the tesla. The progressive way to do things that doesnt amount to a handout is to make the credit more available to lower income. IMO $150K per year income limit single filer is still way too generous but it is a step in the right direction.

Imagine when they first implemented it without any income limits. Then it was limited to 250K or something ridiculous and now 150K for single filer.

We need to get everyone to go EV, not just the rich. Since the cap and trade credits is finite, if we subsidized the rich, there will little to nothing for the poor. And IMO it is the poor that rake up the miles more compared to the rich.

 

[Spatters805]

Thanks for the refresh @tenstringer009 . I don't remember if that was there when I ordered at the end of last year.

I agree completely with subsidizing less financially well off individuals for EV purchases. But people with lower incomes are not likely to buy a new Tesla, all things considered. They are likely buying Bolts, Volts, Fusions, Hyundai's, Leafs and the Prius plugin. They may get a Model 3. Back to my original point, because there are vehicles that cross all income lines, why not incentivize EV purchased in general to stimulate the move to more EV use?

Tesla just happened to pioneer a successful EV model in a versatile form with size, range, and an ideal charging network. They took pure EV's out of the "novel commuter car" class because in short time, they produced something that was not ugly, had great utility, had performance, and could travel across the country.

Also what some are missing is that there are many people who worked their butts off in school, racked up a mortgage sized college debt and now make a great income on paper but have a much lower net because of the costs to get the degree and the associated income. I know doctors with lower take-home pay than some sales associates at some car dealerships. Their gross pay disqualifies them from a rebate after buying even a Leaf. Something wrong with that in my opinion.

 

[No2DinosaurFuel]

Thanks for the refresh @tenstringer009 . I don't remember if that was there when I ordered at the end of last year.

I agree completely with subsidizing less financially well off individuals for EV purchases. But people with lower incomes are not likely to buy a new Tesla, all things considered. They are likely buying Bolts, Volts, Fusions, Hyundai's, Leafs and the Prius plugin. They may get a Model 3. Back to my original point, because there are vehicles that cross all income lines, why not incentivize EV purchased in general to stimulate the move to more EV use?

Tesla just happened to pioneer a successful EV model in a versatile form with size, range, and an ideal charging network. They took pure EV's out of the "novel commuter car" class because in short time, they produced something that was not ugly, had great utility, had performance, and could travel across the country.

Also what some are missing is that there are many people who worked their butts off in school, racked up a mortgage sized college debt and now make a great income on paper but have a much lower net because of the costs to get the degree and the associated income. I know doctors with lower take-home pay than some sales associates at some car dealerships. Their gross pay disqualifies them from a rebate after buying even a Leaf. Something wrong with that in my opinion.

1) the new lower income incentives car manufacture to make EV affordable. We are pass the point where we need to subsidize EV manufacture in sales to get them to produce EVs.

2) if doctors indeed makes less than sale associates after their take home pay then maybe they should choose a different path or spend less somewhere else if they want the tesla/leaf/etc. Everyone makes sacrifices to buy big ticket items.

Not hating on a group of people but I am tired of hearing people complaining about high tuition cost of medical school and how they now have to pay high loan back. Well guess what? I have a huge loan payment for my tesla. But I knew that when I made the decision to buy the tesla. I made sure I am fine with the high monthly payments.

 

[Spatters805]

2) if doctors indeed makes less than sale associates after their take home pay then maybe they should choose a different path or spend less somewhere else if they want the tesla/leaf/etc. Everyone makes sacrifices to buy big ticket items.

Not hating on a group of people but I am tired of hearing people complaining about high tuition cost of medical school and how they now have to pay high loan back. Well guess what? I have a huge loan payment for my tesla. But I knew that when I made the decision to buy the tesla. I made sure I am fine with the high monthly payments.

@No2DinosaurFuel, that sounds pretty sad when you think that there aren't enough doctors in this country given the increase in the number of people who now have access to healthcare and the fact that despite our technology, we still deliver poorer healthcare than some 3rd World nations because of access issues. I would think you're smart enough to come up with a better solution than "find a new profession." If you had even a tiny idea of what type of sacrifice and dedication it takes to enter that profession, you would not make such a poor comment.

To your other point, our point about spending less somewhere else is silly because a Prius, Leaf, Hyundai PHV, etc. are all very affordable cars by the general population. They also qualify for rebates in California. Most people live on some type of budget and make hopefully make decisions based on needs vs. wants. I don't see a $27K Ford C-Max Energi or a $25K Chevy Spark EV as a big ticket item, but again they qualify for rebates that some won't qualify for.This is not a case of wealthy people buying expensive cars. The whole point is that situations like these are overlooked because everybody assumes that if you have a high gross income, then you have loads of disposable cash for high end homes and high end cars, so then $2,500 is not a big deal. That may be the case for some, I'll concede, but I hope I have illustrated that it's not the case for others.

I don't think you're trying to hate on others, but I think your rationale is misguided, that's all.

 

[SMAlset]

Won't get into the EV subsidy incentive discussion but will add that when we ordered our MS back in December our guy told us about the Federal credit and said that as far as the Calif one he found that most of his Bay Area customers don't qualify for it due to the limits set for it now. I do think I recall seeing it on the Tesla calculator page under the Cash option. Some states don't offer anything. We will take advantage of the PG&E incentive. Some Calif cities also offer an incentive, but not many. So definitely take a look at your power company and city programs. I'm guessing that when you guys purchased your wife's car it was prior to the Calif incentive changes in income? Definitely sucks to lose the 2500 though.

 

[Spatters805]

@SMAIset, you are correct. It had not changed yet and since I don't stay on top of every legislative change, I had no reason to think that it would change. I had not seen anything during my research on the car itself to indicate California was changing, then again, I started my research quite early (around the time we took delivery of the Volvo).

As I stated in my post, I am definitely going to enjoy the car and don't feel like $2500 will make or break the process, but in looking at the factors in the decision, I still don't see the rationale if you want more people to buy EV's. I could just as easily picked up a Bimmer 7 series or a Panamera for the money. I believe in Tesla and love the company mission and trajectory so the decision was set for me. Would have been nice to reduce the final cost a bit, though.

No incentives in Ventura County from power company. Can get a reduced energy rate at night for charging, so maybe that helps.

As far as the Federal Tax Credit, the $7500 credit does not translate to $7500 in your pocket at tax filing for many people.

 

[182RG]

As far as the Federal Tax Credit, the $7500 credit does not translate to $7500 in your pocket at tax filing for many people.

Many people? I doubt there are many people who can afford a new Tesla, who don't have at least $7,500 in Federal tax liability?