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

[mpgxsvcd]

There is no holding requirement, but it is always best to get assurance from your tax professional. Here is a link to the IRS requirements

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

There is actually a holding requirement it just isn’t very specific. It says that you can’t get the tax credit if the vehicle is purchased for resale.

I don’t think they can actually enforce that though. I don’t know how they could possibly track that. They just put it in there to scare people.

 

[Tha_Ape]

I think it was put in there to prevent dealerships from abusing it.

It's not for people who sell 1 car a year

 

[mongo]

Let me start off by saying we loved our Tesla but decided to sell based practicality. It's a little too small for our family, otherwise we would keep it. Model Y is out of the question for the time being. With that said, I bought the car in March of 2023 and will be trading it in on a SUV. I've read through the IRS website but have not seen anything related to length of ownership in relation to receiving the 7500 tax credit. Im a little worried that there will be an issue if I trade the car in before receiving the tax credit in 2024. Anyone have any input on this?

Over 30 days, you should be fine.
Topic A, Q10:

In the case of a resale by the purchaser made within 30 days of placing the vehicle in service, the purchaser is treated as having purchased the vehicle with an intent to resell and cannot claim a clean vehicle credit with respect to the vehicle. Such vehicle was already placed in service by a taxpayer, and a new clean vehicle tax credit is not available to a subsequent buyer.

https://www.irs.gov/pub/taxpros/fs-2023-22.pdf

 

[mongo]

Let me start off by saying we loved our Tesla but decided to sell based practicality. It's a little too small for our family, otherwise we would keep it. Model Y is out of the question for the time being. With that said, I bought the car in March of 2023 and will be trading it in on a SUV. I've read through the IRS website but have not seen anything related to length of ownership in relation to receiving the 7500 tax credit. Im a little worried that there will be an issue if I trade the car in before receiving the tax credit in 2024. Anyone have any input on this?

Also, assuming sufficient tax liability, you can still get the 7,500 credit on a Y. If the Y holds eligibility in 2024, it's a point of sale credit which can act as down payment.

 

[KT93]

As many have stated.. We may see the full $7,500 at point of sale in 2024 after all on the Model 3 RWD. The Biden administration has discussed granting automakers a temporary reprieve from new rules poised to limit a consumer tax credit for electric vehicles that contain certain materials from foreign adversaries.

 

[whydontwe]

As many have stated.. We may see the full $7,500 at point of sale in 2024 after all on the Model 3 RWD. The Biden administration has discussed granting automakers a temporary reprieve from new rules poised to limit a consumer tax credit for electric vehicles that contain certain materials from foreign adversaries.

If this is the case, will the Highland get it?

 

[whydontwe]

As many have stated.. We may see the full $7,500 at point of sale in 2024 after all on the Model 3 RWD. The Biden administration has discussed granting automakers a temporary reprieve from new rules poised to limit a consumer tax credit for electric vehicles that contain certain materials from foreign adversaries.

If this is the case, will the Highland get it?

 

[pdx_m3s]

Tesla either figures out a way to access a tax credit for Model 3 or they suspend offering it as a product.

I think their recent communications about the credit ending are more to boost Q4 sales than anything.

 

[MP3Mike]

Tesla either figures out a way to access a tax credit for Model 3 or they suspend offering it as a product.

It only ends for RWD and LR. Model 3 Performance still gets the credit... Maybe they just sell a lot more performance models?

I don't think enough compliant batteries exist to enable the credit for the RWD. I'm surprised about the LR, Panasonic really needs to get their act together and increase the production of cells at GigaNevada.

 

[mongo]

Tesla either figures out a way to access a tax credit for Model 3 or they suspend offering it as a product.

I think their recent communications about the credit ending are more to boost Q4 sales than anything.

Leases still get $7,500.

 

[pdx_m3s]

It only ends for RWD and LR. Model 3 Performance still gets the credit... Maybe they just sell a lot more performance models?

I don't think enough compliant batteries exist to enable the credit for the RWD. I'm surprised about the LR, Panasonic really needs to get their act together and increase the production of cells at GigaNevada.

There's a lot that Tesla isn't sharing regarding Highland model line-up and how that intersects with the IRA. All we know is that the existing (old) Model 3 will lose the credit.

RWD will be tough unless they can utilize a 4680 pack. I'll be a happy camper if the IRA forces Tesla to switch the LR back to US-Panasonic cells from CN-LG cells.

 

[mongo]

RWD will be tough unless they can utilize a 4680 pack. I'll be a happy camper if the IRA forces Tesla to switch the LR back to US-Panasonic cells from CN-LG cells.

And what product are they taking cells from to achieve that goal? Panasonic cells get a $35/kWh credit, modules an additional $10. Hard to see why Tesla woukd be throttling cell production.

 

[MP3Mike]

There's a lot that Tesla isn't sharing regarding Highland model line-up and how that intersects with the IRA.

How so? The Model 3 Highland uses the exact same battery pack as the pre-Highland...

 

[JCtx]

Hey gang, please let me understand what's happening with the batteries. I was told by my (admittedly clueless) dealer that the LR and P right now have the same (78.1 kWh?) battery pack, and it's an LG. Is that true? And then reports say RWD and LR won't qualify for the rebate in '24, so that tells me the P has a different battery pack, no? And which one? I'm considering a P, and want the reportedly better Panasonic pack, which I believe it's 82 kWh, right? Finally, the newer models having more Chinese parts/materials: Is it a bad thing, other than losing the rebate? Thank you.

 

[KT93]

How so? The Model 3 Highland uses the exact same battery pack as the pre-Highland...

How do we know Tesla isn't going to use different batteries in the US Model 3 Highland version? Doubtful, but possible? A strategy to help maximize current Model 3 sales (and 2023 total sales) by saying the $7,500 is going away come January 1, 2024. While the credit stands at $0 in the early parts of Q1, Tesla could later announce Highland with orders opening and deliveries beginning in Q2 WITH the full $7,500 or $3750 at point of purchase.

 

[whydontwe]

How do we know Tesla isn't going to use different batteries in the US Model 3 Highland version? Doubtful, but possible? A strategy to help maximize current Model 3 sales (and 2023 total sales) by saying the $7,500 is going away come January 1, 2024. While the credit stands at $0 in the early parts of Q1, Tesla could later announce Highland with orders opening and deliveries beginning in Q2 WITH the full $7,500 or $3750 at point of purchase.

Another time of drama in December. I remember a couple of years ago when people bought a bunch of Ys in December since Tesla was pushing incentives like free supercharging for 10k miles, only to lower the price on Jan 1 by $$$.

 

[pdx_m3s]

How so? The Model 3 Highland uses the exact same battery pack as the pre-Highland...

The Shanghai Highland does, yes. I think U.S. may be different due to IRA.

 

[pdx_m3s]

Hey gang, please let me understand what's happening with the batteries. I was told by my (admittedly clueless) dealer that the LR and P right now have the same (78.1 kWh?) battery pack, and it's an LG. Is that true? And then reports say RWD and LR won't qualify for the rebate in '24, so that tells me the P has a different battery pack, no? And which one? I'm considering a P, and want the reportedly better Panasonic pack, which I believe it's 82 kWh, right? Finally, the newer models having more Chinese parts/materials: Is it a bad thing, other than losing the rebate? Thank you.

RWD = CATL LFP (china)
LR = LG NMC (china)
P = Panasonic NCA (nevada)

The Panasonic cells are the highest performing in terms of energy density and charging performance.

 

[JCtx]

Thanks a lot for that detailed info; greatly appreciated. So P it is.

Hey gang, I read somewhere that Tesla was almost at the 1.8M units for '23 a couple of weeks ago, so it's probably there by now, no? Any idea where they are in sales? I was hoping for crazy deals at the end of the year, but I'm not very optimistic I could even get one locally for the $46K advertised in Dallas, but have cash on hand to buy one at the last minute. I was hoping a little lower than that, since I'd have to immediately dump the freaking summer tires for UHPA/S ones (Pilot A/S4s). We'll see what happens. Right now all the Ps showing locally available (with white interior) have zero discount.

 

[MP3Mike]

The Shanghai Highland does, yes. I think U.S. may be different due to IRA.

Where do you think they are going to get the batteries from? If they are available now, why aren't they using them already?