CaptUAL
Member
Wonder if delaying ordering for any tax break, would be better than the inevitable price increases?
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Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum
- Thread starter mapman
- Start date
yerEVan
Active Member
1) sorry if I sound ignorant but is it definite that 2022 purchases will not qualify?
2) if yes to 1 then will you owe the fed $7,500 or more in your 2023 tax return?
2) if yes to 1 then will you owe the fed $7,500 or more in your 2023 tax return?
Soul Surfer
Cancervivor, tech geek & musician
Such a conundrum. I would say that NOTHING is garanteed in life, with the exceptions of death and taxes. Having said that and hitting 70 next month, I personally don’t let these matters weigh me down. I believe in "burning-the-day", while one still can. It is called the "present" for a reason. Tomorrow is no garantee for me, anyway.
Sorry to sound so morose, but as we age, we face our mortality and realize that we want to make it count.
Sorry to sound so morose, but as we age, we face our mortality and realize that we want to make it count.
ATPMSD
Active Member
Need to consider how much more you will pay to order the replacement Model 3. Go to the Tesla site and start an new order to get new pricing. And make sure the price for your new Model 3 is less than $55K otherwise you do not get a credit. Also, make sure you will be under the AGI limits in 2023.
Tam
Well-Known Member
It's still a big confusion.
Where will Tesla critical materials such as Lithium, Nickel, grahite, and others come from?
It will need to get them from North America. How will car companies compete each other to get a contract to source the minerals from North America?
It might be much more expensive to do that than giving up the tax credit and continuing the present source from China.
Knightshade
Well-Known Member
Currently nobody knows for sure which, if any, Model 3s will qualify (msrp) or for how much of the rebate (sourcing restrictions), so it's a total crap shoot right now.
Right. The car's price already rose by 2K since I ordered so my maximum profit here would be 5.5K. And with the sourcing limitations and all the confusion in the bill might lead to even less than that so I believe I would stick to my order and ignore the noise.
How often do people get their car sooner than their initial EDD? If I wait until the order page is estimating Jan-Mar 2023 delivery then it’s pretty safe to say it’ll be delivered in 2023 right? Unless a ton of people cancel their 2022 delivery. I figured the LFP battery M3 will have a 10% change getting half federal credit next year.
Tam
Well-Known Member
Currently Tesla gets LFP from China which is an automatic disqualification. No matter how small the mineral percentage comes from China, that's an automatic disqualification.
How does the figure of 10% change would help?
Sometimes it's a complete fluke. Someone with your exact same specs in your area gets their VIN shipped to the local service center, that someone ends up not taking delivery for some reason, local store then matches you up with that VIN as you are in the area and the specs match, and boom, now you have a VIN even if your EDD was 6 months away.
They will be subject to the 40% "free trade" mineral and 50% "free trade" pack component requirements. (And it actually starts as soon as the details are released, which is to be no later than 12/31/2022. If they were released tomorrow, Tesla vehicles delivered the for rest of the year could possibly qualify.)
1.reset cap of 200k starting on 1/1/2023 (so tesla,ford,gm cars do not qualify in 2022)
2. 40% minerals requirement gets you $3750. at this point no car qualify unless biden administration provides some provision
3. battery manufactured OR battery assembled in US. this gets you other $3750. even though LFP battery is manufactured in china the pack is assembled in US and as per window sticker tesla showing as US battery. unless tesla changes the window sticker people are eligible to get the $3750. so good chance and more than 10% chance
The cap is eliminated, not reset, when the final details are released. Which could be tomorrow, but no later than 1/1/2023.
I thought I read that it is based on 50% of the battery components being made/assembled in NA. Just assembling it in Fremont with all Chinese modules will get you nothing. From: https://www.congress.gov/bill/117th-congress/house-bill/5376/text3. battery manufactured OR battery assembled in US. this gets you other $3750. even though LFP battery is manufactured in china the pack is assembled in US and as per window sticker tesla showing as US battery. unless tesla changes the window sticker people are eligible to get the $3750. so good chance and more than 10% chance
A module made in China and put in a pack here would not count. (There is no way that the modules account for less than 50% of the value of the pack.) So I think the Model 3 RWD will get no credit. (Nor will any other Model 3 at this time.)
tesla showing M3 RWD in monroney sticker as "battery assembled in fremont,CA" no mention of china parts any where in the monroney sticker. we have to see if tesla modifies the monroney sticker. until that point we should assume m3 rwd qualifies the $3750. as per federal law, monroney sticker is gold copy record
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