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

[chek39]

The public comments that the IRS requested are due by 11/4. So then the question is how long will it take them to review the comments and produce the final guidance? All we know is that they are required to publish it by the end of the year. So it will be out sometime between 11/7 and 12/30.

But even then you won't know immediately which vehicles qualify. Manufacturers will have to review the guidance and figure out which of their vehicles qualify.

i doubt any vehicle will qualify the ev credit unless IRS/administration do some changes... may be delaying the battery requirements.
At this point ford or GM or tesla or VW ID4 qualify under "made in america" and they are atleast 2years away to match the other 2 portions of the law.
probably GM and ford lobbying again to come out their initial mistake where they lobbied the way law was written

 

[Snow Drift]

I wish Congress used 12/31 as a cut off point for tax credits and the IRS was quick to note the clarity around 2023 MY vehicles too. After the tax credit went away, I removed the Kia EV6 and Hyundai Ioniq from consideration, especially with the abhorrent "market adjustments" stealerships love to add onto the vehicles they sell.

It makes it so much easier to get a RWD M3 over a Polestar 2 with similar configured packages to include some of the features Tesla offers in a base M3 because the tax credit won't absorb the price differences anymore.

Tax credits should be instantaneous at the time of purchase, not some claim in 2024 for the 2023 tax year.

Yes, that would be a lot easier. FYI, I've heard that the Koreans don't pass onto a leasee the credit. Tesla does (or did in the past via residual inflation).

That would be a rebate and not a tax credit...

There is no way to 100% know that you are going to qualify for a tax credit until the year is over. (I suppose that isn't 100% true because you can qualify for the income limit on the prior years MAGI, but if you didn't qualify last year but think you will this year could cause a problem.) So even when the tax credit can be applied at purchase time , in 2024, some people are going to get nailed by it. (For example, if they are close to the income limit, and buy the car with the time of purchase credit early in the year, but they get a big raise, or bonus, that pushes them over the limit by the end of the year; they would then have to repay the credit they were given to the IRS when they file.)

Just lease and the income limits won't apply.

i doubt any vehicle will qualify the ev credit unless IRS/administration do some changes... may be delaying the battery requirements.
At this point ford or GM or tesla or VW ID4 qualify under "made in america" and they are atleast 2years away to match the other 2 portions of the law.
probably GM and ford lobbying again to come out their initial mistake where they lobbied the way law was written

Tesla should qualify for 50% of the credit on Jan 1, 2023. The LR Panasonic batteries are built in Nevada.

 

[chek39]

Yes, that would be a lot easier. FYI, I've heard that the Koreans don't pass onto a leasee the credit. Tesla does (or did in the past via residual inflation).


Just lease and the income limits won't apply.


Tesla should qualify for 50% of the credit on Jan 1, 2023. The LR Panasonic batteries are built in Nevada.

unless Telsa reduce the price below < 55k

 

[Snow Drift]

unless Telsa reduce the price below < 55k

Obviously, they will have a <$55k Model 3. The LR AWD is off menu until then.

 

[johnruiz94]

I, probably like many others, am looking to get the Model 3 delivered at or after January 1st for the potential of a $3,500 or $7,500 EV tax credit for the standard range version.

I have been refreshing the order page for the estimate delivery date and it has not moved from "Nov-Dec 2022" in weeks now. Back in October it use to say "Oct-Dec 2022".

Any general idea when deliveries will hit January 2023? When would be the best time to order? Any other tips on how to get a delivery as close to Jan 1st as possible? How many days/weeks can I ask Tesla support to delay my delivery?

 

[mat1990dj]

Currently have EDD of 12/1 - 12/29... keeping in mind the possible tax credit for RWD (or not because of LFP) and those 14 days. Will they attempt to deliver it before 12/15 so 14 days is still 2022? Or will I have a date after 12/15 and so I can bump it to 2023?

 

[Evpowerdan]

Currently have EDD of 12/1 - 12/29... keeping in mind the possible tax credit for RWD (or not because of LFP) and those 14 days. Will they attempt to deliver it before 12/15 so 14 days is still 2022? Or will I have a date after 12/15 and so I can bump it to 2023?

How do plan to bump if you get a VIN in mid December for another 2+weeks?

 

[mat1990dj]

How do plan to bump if you get a VIN in mid December for another 2+weeks?

Putting the delivery on hold when I get a delivery schedule

 

[Evpowerdan]

Putting the delivery on hold when I get a delivery schedule

Not sure how you accomplish that. I could not put mine on hold when the EDD got close and a vin. Only option was to have someone go get it or authorize release of the vin, and they put me back in line, which I received the 2nd Vin within 10 days. Tesla will not hold pickup longer than 3 days - they are in the business of making, selling and delivering the product to recognize revenue. A solid business practice to keep scaling.

 

[Rick3287]

I am in similar situation with base 2023 RWD. I just got today VIN but no confirmation of delivery date yet with est 11/13-11/22. A decent amount of lost gain from my Amazon RSU shares I held on in the past in few weeks that I didn't sell when they traded higher discourage me from withdrawing cash and that $3750 potential tax incentive next year incentivizes me even more to delay or cancel the order. I have Corolla 2011 for trade that still ok to drive but not as stable to drive over 70+mph on highway as newer cars. Altough I suspect loan interest rates may even go higher and Tesla may rise price.
Can I afford this car?

Amount of cash available for downpayment	$5000 (min) (may stretch to 10k from already sold shares)
Value of my 130k 2011 Corolla for sale at Carvana (fair cond with scratches)	$5000
Trade-in value proposed by Tesla on my Corolla	$3600
Est cost of the car + delivery before taxes	$48,400
Potential CU lender and interest loan rate at 72 months	3.5%
Average loan market rate	5%
Income	125,000k / year
student loan	$300-400 (federal) per month (>10k left)
rent (bay Area)+ utilities	$2600-2800 a month

 

[Kjustin]

Hey Guys,

Just wondering if now is the best time to purchase a 2023 Tesla Model 3 Long Range? Currently they are offering $3750 off and that would bring the cost to 55,690. I currently have ordered one and haven’t gotten a delivery date yet. Should I wait until 2023 or should I take advantage of this offer now? Having trouble deciding

 

[parrainx]

I guess the only thing is that when it comes to LR you can’t custom order and have to choose from inventory that might not have the combo of options you want.

 

[RandyS]

If I had to make a bet, I would say that Tesla will raise prices at the first of the year to capture some of that tax credit money...Wouldn't it be a co-ink-a-dink if they raised it about $3,750? Prices were higher before when the previous tax credit was active and they lowered prices when the tax credit ran out. Of course, not everyone or every car qualifies for the new tax credit (income limits, car price limits, etc.), so the current $3,750 credit sounds pretty good to me...And you don't have to wait 15 months to actually get that credit like you would for the first year's new tax credit...

 

[Kjustin]

If I had to make a bet, I would say that Tesla will raise prices at the first of the year to capture some of that tax credit money...Wouldn't it be a co-ink-a-dink if they raised it about $3,750? Prices were higher before when the previous tax credit was active and they lowered prices when the tax credit ran out. Of course, not everyone or every car qualifies for the new tax credit (income limits, car price limits, etc.), so the current $3,750 credit sounds pretty good to me...And you don't have to wait 15 months to actually get that credit like you would for the first year's new tax credit...

Hmm that’s a good point but for the LR M3 to qualify it needs to be under 55k currently it’s sitting at about 58 so they would need to lower the cost. Do you think it would qualify for the full 7500? I can live with missing out on 3750 but idk about 7500

 

[RandyS]

Hmm that’s a good point but for the LR M3 to qualify it needs to be under 55k currently it’s sitting at about 58 so they would need to lower the cost. Do you think it would qualify for the full 7500? I can live with missing out on 3750 but idk about 7500

You're right, the particular model you're interested in would have to be below $55K. It might end up just being the Model 3 SR+ that is under that price...Is your federal tax obligation over $7500? Some people don't think about that, and can't capture the full $7500 credit. And on the other side of the equation, do the income limits apply? If you can get the entire $7500, that's great! Or you can get the $3750 now without having to wait...The $3750 will reduce the price of the car and will also reduce sales tax and vehicle registration, so that's a plus...The $7500 tax credit doesn't, and you have to wait until March/April 2014 to get that...Tough choice, as we don't know what Tesla will do with pricing on January 1.

 

[hodad66]

Long time lurker here as I drove 4 Chevy electric vehicles. That ended this month with the discount and actually having vehicles in stock! Model 3 rear wheel delivery date 12/20......

 

[cbigfoot]

I just want to say I pulled the Trigger had a Blue M3 RWD 18" custom ordered was being shipped when the tax credits where announced in September so I made what felt like the most painful decision ever and canceled as I was not going to throw out the 3750-7500. instead i tossed out 250...But then Dec 1 they announced the discount, and I Went to order, I was disappointed the Blue RWD with 18" black was sniped while verifying with an Adviser how the discount worked...so went with my 2nd choice MSM so TECHNIALLY I saved $4500...Ordered 12/2 Delivered 12/7 with 8 Miles on the odometer. Today was the First time i saw it in Full sun light Stupid TN Weather...

with that rant being over if you want a RWD and can still get it this year i would...

 

[Tim Roland]

Please keep in mind that the the

Hey Guys,

Just wondering if now is the best time to purchase a 2023 Tesla Model 3 Long Range? Currently they are offering $3750 off and that would bring the cost to 55,690. I currently have ordered one and haven’t gotten a delivery date yet. Should I wait until 2023 or should I take advantage of this offer now? Having trouble deciding

Do you normally get a tax return at the end of the year or do you normally owe the IRS? If you always get a return then take the $3,750 off the car now in December.

The 2023 EV tax credit is NOT REFUNDABLE. That means you can only take advantage of it if you owe the IRS for underpayment. You will not get a bigger return because you bought an EV. Doesn’t work that way.

Also there are income limits to consider with the 2023 tax credit. So make sure both your tax burden will be high enough to make $7,500 credit worth while and make sure you fall under the income threshold.

 

[honkbahh]

Please keep in mind that the the

Do you normally get a tax return at the end of the year or do you normally owe the IRS? If you always get a return then take the $3,750 off the car now in December.

The 2023 EV tax credit is NOT REFUNDABLE. That means you can only take advantage of it if you owe the IRS for underpayment. You will not get a bigger return because you bought an EV. Doesn’t work that way.

Also there are income limits to consider with the 2023 tax credit. So make sure both your tax burden will be high enough to make $7,500 credit worth while and make sure you fall under the income threshold.

Not Refundable only applies if the tax credit is larger than your tax liability. It has nothing to do with whether you get a refund or owe the IRS. That has to do with your withholdings.

 

[davelv]

With the IRS delaying the battery material rule until March, will Tesla reduce the price of the 3 with 4D radar below the $55k MSRP limit to qualify it for the full $7500 ev credit if bought by March?