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

[mongo]

Is that still true for 2024 when income tax owed is no longer a factor?

Yah, the second line was specifically for 2024 Point of Sale. Otherwise, it would be all line one since there is no net refund ability under 2023 rules.

 

[JWhite65]

Does anybody know where this money is coming from? Is it just purely printed money from the fed? Now that it's just given away vs a reduced tax liability it seems like a different thing.

My understanding is that the only difference in 2024 vs 2023 is that you get the "credit" up front. You still have to qualify for it and, if you don't, you will have to pay the money back on next year's tax return.

 

[Knightshade]

My understanding is that the only difference in 2024 vs 2023 is that you get the "credit" up front. You still have to qualify for it and, if you don't, you will have to pay the money back on next year's tax return.

You still have to be below the income cap (they will claw the full $7500 back otherwise)

But you will no longer have to have $7500 in tax liability (they will NOT claw that back if you don't) if you take the POS credit.

 

[JWhite65]

You still have to be below the income cap (they will claw the full $7500 back otherwise)

But you will no longer have to have $7500 in tax liability (they will NOT claw that back if you don't) if you take the POS credit.

Thanks! That's good to know.

 

[pdx_m3s]

If I take the credit up front based on my 2023 income, but my 2024 income ends up being over the MAGI limit, will I have to repay the $7,500 when I file my 2024 taxes?

 

[MP3Mike]

If I take the credit up front based on my 2023 income, but my 2024 income ends up being over the MAGI limit, will I have to repay the $7,500 when I file my 2024 taxes?

No. (At least that is my understanding.)

 

[mongo]

If I take the credit up front based on my 2023 income, but my 2024 income ends up being over the MAGI limit, will I have to repay the $7,500 when I file my 2024 taxes?

Nope, you can qualify based on the year of purchase or the previous year.
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf

Topic B: Income and Price Limitations for the New Clean Vehicle Credit

Q1. Could my income level prevent me from taking the new clean vehicle credit? (updated October 6, 2023)

A1. Yes. You may not claim the credit if your modified adjusted gross income (AGI) exceeds certain thresholds. This limitation is based on the lesser of your modified AGI for the year that the new clean vehicle was placed in service or for the preceding year.

The relevant modified AGI thresholds are as follows:
• Married filing jointly or filing as a qualifying surviving spouse or a qualifying widow(er) - $300,000
• Head of household - $225,000
• All other taxpayers - $150,000

Your modified AGI is the amount from line 11 of your Form 1040 plus:
• Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income.
• Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa.

If your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year.

 

[golfcart]

I get why the RWD model lost the credit, but why did the long range awd lose it while the performance awd kept it? I thought they used the same batteries?

It is a strange situation now where the net cost of a performance model is now less than a regular dual motor and almost cheaper than a RWD as there are inventory performance models in the $46k range (~$39k net) where I live.

 

[Knightshade]

I get why the RWD model lost the credit, but why did the long range awd lose it while the performance awd kept it? I thought they used the same batteries?

It is a strange situation now where the net cost of a performance model is now less than a regular dual motor and almost cheaper than a RWD as there are inventory performance models in the $46k range (~$39k net) where I live.

LR AWD went off the menu for a good while-- when it came back it was using Chinese 2170s, not US ones.

 

[golfcart]

LR AWD went off the menu for a good while-- when it came back it was using Chinese 2170s, not US ones.

I didn't realize they had changed the battery. Good to know thanks.

 

[pdx_m3s]

Nope, you can qualify based on the year of purchase or the previous year.
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf

Thanks. Now let's hope Highland-P qualifies for the $7,500.

 

[mjwojtukiewicz]

Is that still true for 2024 when income tax owed is no longer a factor?

Yeah, but you can't buy anything> Thanks Joe Manchin

 

[MontyFloyd]

Possible the Model 3 Highland eligible for $7500 purchase tax rebate in future?
I see only 2 versions, no $7500 except for Lease (not willing to do that)
May there be a 3ed version?

Any idea why it lost the eligibility? Guessing its battery material source.

Thanks

 

[ucmndd]

Any idea why it lost the eligibility? Guessing its battery material source.

RWD and LR, as they existed pre Highland upgrade, used batteries from China, which is why they're no longer eligible in 2024.

I presume the same is true for the Highland RWD and LR.

 

[E90alex]

Possible the Model 3 Highland eligible for $7500 purchase tax rebate in future?
I see only 2 versions, no $7500 except for Lease (not willing to do that)
May there be a 3ed version?

Any idea why it lost the eligibility? Guessing its battery material source.

Thanks

It will not regain eligibility unless Tesla changes the batteries or the law changes again.

We will have to wait and see if the not yet released Performance keeps eligibility with the Panasonic battery or if they move that to the LG battery as well.

 

[Tezla1]

I placed order today for M3 RWD Highland. Opted for the Lease.

The monthly payment has the 7500 incentive baked in.

Is there any other EV rebates that I can get in CA ?

 

[Tam]

I placed order today for M3 RWD Highland. Opted for the Lease.

The monthly payment has the 7500 incentive baked in.

Is there any other EV rebates that I can get in CA ?

CVRP Home | Clean Vehicle Rebate Project

cleanvehiclerebate.org

 

[tyler_k1]

Rolling the dice on a discounted M3P with hopes that the POS credit gets sorted out in time. SA said it's on the IRS to fix their systems and that they would try to be flexible with delivery.

 

[ucmndd]

CVRP Home | Clean Vehicle Rebate Project

cleanvehiclerebate.org

CVRP is dead dead dead

 

[Tam]

CVRP is dead dead dead

Oh no!!!

I thought it always run out of findings then it would get more again.

Thanks for pointing out that it's dead! So sad!