I texted the Tesla number. They were able to at the time… I heard that some people weren’t able to now since everyone is doing it but I’m not 100% sure on that
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Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum
- Thread starter mapman
- Start date
TryingHard32
Member
Depends how bad you want the car. If you are waiting on a potential tax break then you may wait later on the car itself. Me I just got one this year with the intent on persuing the credit full on but preparing for the acceptance of my missing the threshold. Also depends what model and what package.
To OP, for what it’s worth I am in a similar boat. Ordered a M3 RWD on 8/1 because I have to start commuting again. EDD was originally stretched to 1/3/23 and has since come back to 12/16/22. I will try to push my delivery to early January once I get my VIN but to be honest with how inflation and demand for these critical battery elements has been going I think it’s a toss up to take my locked in price vs reorder. In my experience in this environment the price of many goods are never likely to return to where they once were. Tesla could increase prices today, tomorrow, or next month so it’s probably a gamble either way. So if there is too much uncertainty to make a decision it’s best to rely on what is factual about your individual situation. Need the car like me, then take delivery. If you can afford to wait and get back in line then do that. Too much speculation and analysis causes unnecessary worry and my sleep is more important to me than that. Trust me I had paralysis by analysis until this epiphany 
Looks like we still have a while until we know what’s qualifies. IRS is asking for comments before Nov 4 but hopes to have guidelines before the end of the year…
www.teslarati.com
US eager to implement Biden's updated EV tax credit
The US seems eager to start the implementation of the new $7,500 EV tax credit from the Inflation Reduction Act.
www.teslarati.com
Official release…Looks like we still have a while until we know what’s qualifies. IRS is asking for comments before Nov 4 but hopes to have guidelines before the end of the year…
US eager to implement Biden's updated EV tax credit
The US seems eager to start the implementation of the new $7,500 EV tax credit from the Inflation Reduction Act.
Could you help clarify few things regarding the Inflation Reduction Act?
1) If we take delivery of M3 in within 2022, there would not be 7500 Tax Credit, since Tesla has reached the cap for cars sold, correct?
(does the 200,000 cars-sold cap go away only in 2023 or did it go away when the Act was signed)?
2) If we take delivery in 2023, the only model that would be eligible for the credit is the standard range?
3) there is a requirement for North American assembly. Are all Tesla bought in the US qualify for this (we're in California)?
1) If we take delivery of M3 in within 2022, there would not be 7500 Tax Credit, since Tesla has reached the cap for cars sold, correct?
(does the 200,000 cars-sold cap go away only in 2023 or did it go away when the Act was signed)?
2) If we take delivery in 2023, the only model that would be eligible for the credit is the standard range?
3) there is a requirement for North American assembly. Are all Tesla bought in the US qualify for this (we're in California)?
1) Yes, the cap goes away only if you purchase the car in 2023
2) For Model 3, yes, it is the standard range only. Though Tesla might release a long range version just below $55K in 2023 but no word on that as of now
3) I am 99% certain this is the case, but there are also some requirements on the battery material/assembly, so I would check those out
Finally, make also sure that your income is below the adjusted gross income (AGI) level to qualify for the credit. It was $150K for single filers and $300K for married joint filing AFAIK
2) For Model 3, yes, it is the standard range only. Though Tesla might release a long range version just below $55K in 2023 but no word on that as of now
3) I am 99% certain this is the case, but there are also some requirements on the battery material/assembly, so I would check those out
Finally, make also sure that your income is below the adjusted gross income (AGI) level to qualify for the credit. It was $150K for single filers and $300K for married joint filing AFAIK
I didn't think it would qualify for anything because the battery components, and minerals, are all from outside of acceptable countries.
It starts in 2023. Actually it starts as soon as the guidance is released, which could be tomorrow.
I took a closer look, but am certainly not sure. From the AP: "One component of the bill would require that after 2024, no vehicle would be eligible for tax credit if its battery components came from China". Most electric vehicles won't qualify for federal tax credit
I also checked the bill itself: "
“(7) EXCLUDED ENTITIES.—For purposes of this section, the term ‘new clean vehicle’ shall not include—
“(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or
“(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).” https://www.congress.gov/bill/117th-congress/house-bill/5376/text
I read that as the 40% source materials applies before Jan 1 2024, but the banned countries provisions don't start until after Dec 31 2023 and after Dec 31 2024. But absolutely don't take my word for it.
The IRS is asking for public comments until Nov 4th. Don’t expect guidance until after then.
I wasn't talking about the banned country provision. The LFP battery in the Model 3 RWD comes from China, so it likely can't meet even the low sourcing requirements that start as soon as guidance is released.
Who knows? Perhaps Tesla will switch to different batteries for the M3 RWD in the US in 2023 so those cars will be eligible for incentives.
This would seem sensible, because if they arrange for a slight price cut to the M3 AWD to allow buyers to take advantage of those incentives - and fail to do so for the RWD - then the real-world price difference between the two might be small enough to really hurt RWD sales in the US.
This would seem sensible, because if they arrange for a slight price cut to the M3 AWD to allow buyers to take advantage of those incentives - and fail to do so for the RWD - then the real-world price difference between the two might be small enough to really hurt RWD sales in the US.
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