Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum

[farmerinnorth]

I live in South Dakota and I am considering career direct as a delivery option.

I am wondering if it is a good idea of ordering a Tesla 3 RWD now, I assume I won't get delivery before March 2023. And If I won't get delivery before march then how much credit I would get, I mean would it be less than 7500

 

[Clover]

It is rumored that $3,750 would no longer qualify when they release those requirements. However, II I think the problem is that nobody would qualify right now for that side of the credit and how do they want to handle that. If you can get it by Feb. you should be safe.

 

[GermanKief]

IRS page was updated today, still no M3P listed...

 

[zimm17]

Tesla's webpage says the 3P qualifies for the $7,500 tax credit until March. However on the IRS webpage, the performance is suspiciously absent from the list of qualified vehicles. Anyone know the truth? I'd hate to toss away $7,500 if it doesn't qualify.

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Tesla Model 3 Rear Wheel Drive	$55,000
2022, 2023	Tesla Model 3 Long Range	$55,000
2022, 2023	Tesla Model Y All-Wheel Drive - 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y Long Range - 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y Performance - 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y All-Wheel Drive - 5 seat variant (2-rows)	$55,000
2022, 2023	Tesla Model Y Long Range - 5 seat variant (2-rows)	$55,000
2022, 2023	Tesla Model Y Performance - 5 seat variant (2-rows)	$55,000

 

[Operator64]

Maybe it didn’t qualify before the recent price decrease?

 

[zimm17]

Maybe it didn’t qualify before the recent price decrease?

That's a very likely scenario. So now it comes down to a bean counter at the IRS saying, "sorry, it's not on the list", or they say, "OK, the price dropped, so now it's covered".

 

[Operator64]

That's a very likely scenario. So now it comes down to a bean counter at the IRS saying, "sorry, it's not on the list", or they say, "OK, the price dropped, so now it's covered".

Never called them bean counters, I usually use much more colorful names

 

[Clover]

Maybe it didn’t qualify before the recent price decrease?

It did not qualify before the recent price decrease, however, they have updated their list since then. Plus, the Model Y is listed which had the price drop at the same time. I'm nervous and don't really know where to get a real answer on this.

 

[MacO512]

File taxes and claim the credit. I don't believe the IRS will challenge it. Their website doesn't say it's a definitive list or that vehicle must be on their list for the credit.

 

[Clover]

File taxes and claim the credit. I don't believe the IRS will challenge it. Their website doesn't say it's a definitive list or that vehicle must be on their list for the credit.

While that is probably what I am going to end up doing, for me $7,500 is a big bet that there is nothing I'm missing in a new law that is obnoxiously complex with unclear implementation. You're not wrong, it just sucks to not know right now. I sure hope to find something more solid before my delivery. I also don't want to trigger an audit and a VIN check is a super easy automated test the IRS likely runs. Do you really want to get flagged, even if your right and justified?

 

[Fifthmonkee]

I could ask my accountant this, but he'd probably charge $100 to answer.

I bought my Model 3 last year (2022) when there was no tax credit. But this year, the 2022 is listed as eligible: EV Tax Credit: 2022 & 2023 - Which Cars Qualify & How It Works

Does that mean my 2022 would only be eligible if I bought it this year? Or will I be able to get a tax credit on my 2022 return now in preparation? In other words, am I out of luck or in luck?

Thanks for any help.

 

[jjrandorin]

I could ask my accountant this, but he'd probably charge $100 to answer.

I bought my Model 3 last year (2022) when there was no tax credit. But this year, the 2022 is listed as eligible: EV Tax Credit: 2022 & 2023 - Which Cars Qualify & How It Works

Does that mean my 2022 would only be eligible if I bought it this year? Or will I be able to get a tax credit on my 2022 return now in preparation? In other words, am I out of luck or in luck?

Thanks for any help.

Tesla was not eligible for tax credits last year so you are out of luck.

 

[yankees25]

While that is probably what I am going to end up doing, for me $7,500 is a big bet that there is nothing I'm missing in a new law that is obnoxiously complex with unclear implementation. You're not wrong, it just sucks to not know right now. I sure hope to find something more solid before my delivery. I also don't want to trigger an audit and a VIN check is a super easy automated test the IRS likely runs. Do you really want to get flagged, even if your right and justified?

I just think the IRS fat fingered it. They list the Tesla Model Y Performance - 5 seat variant (2-rows) but there is no build from Tesla available for under $55K. I would think as long as you have a M3P order agreement that shows sub-$55K, you are fine. Still bummed Black took it over $55K, but Blue will do just fine.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service

You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

www.irs.gov

 

[nickg_6]

here is the IRS page for 2022 EV's

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2022 and Before | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2010 and 2022.

www.irs.gov

Expand for Tesla to see.

Cheers

 

[johnzm]

hey guys,

talked to my tax guy who told me about plenty of people who bought ev's that didnt qualify after the dealer assured them they would. i am in the same boat wanting to pickup a M3P, and the list on irs.gov is very clear in which cars do qualify. i am going to wait and watch to see if the M3P gets added. it does note at the bottom of the page it was edited just 1 week ago, so i suspect they are making adjustments as needed.

 

[BigNick]

Note the IRS also lists the 7-seat MYP which doe snot exist. The MYP is available only as a 5-seater.

 

[nickg_6]

if this guy gets his way they will remove Tesla from the rebate (well at least for the battery component). He wants to make it retroactive.

Sen. Joe Manchin bill would cut off $7,500 EV tax credits allowed by loophole

Senator Joe Manchin is introducing a bill to close a loophole that allows EVs to qualify for the $7,500 tax credit without meeting battery source rules.

us.yahoo.com

Cheers

 

[Clover]

if this guy gets his way they will remove Tesla from the rebate (well at least for the battery component). He wants to make it retroactive.

Sen. Joe Manchin bill would cut off $7,500 EV tax credits allowed by loophole

Senator Joe Manchin is introducing a bill to close a loophole that allows EVs to qualify for the $7,500 tax credit without meeting battery source rules.

us.yahoo.com

Cheers

He is just mad his other bill to line his pockets got blocked and is lashing out. This new bill has little chance of getting through. Last I saw, he could not even find a cosponsor for this bill.

 

[nickg_6]

Manchin proposal was blocked by other senator:

U.S. Senator blocks bid to close EV tax window

 

[discodanman45]

I am waiting a few weeks to see what CVRP does with Tesla going under $45,000. My income is just below the 400% by $31, so I might be able to get a $7500 rebate. I wanted a Model Y, but if I qualify for the Model 3 with $7500 federal, $7500 CVRP, and $3000 Air Pollution District, I might have to live with a second Model 3.