Does the Roadster qualify for the $7500 tax credit?

[DaveD]

I went searching for information on the irs.gov website about the tax credit for buying a Roadster.

I found this page: Tax Breaks Available for Taxpayers Who Purchase Qualified Plug-In Electric Vehicles, which has a link to this page: Plug-In Electric Vehicle Credit (IRC 30 and IRC 30D)

Tesla Motors isn't on the IRS's list of Qualified Vehicle manufacturers.
Am I missing something?

 

[tennis_trs]

Great!
I was wondering whether the AMT takes away some/all of my $7,500 credit (I still haven't seen a clear answer on that), I guess I won't need to worry, if the Roadster doesn't qualify.

 

[Mark06GT]

I was told by several Tesla employees that we would be eligable for the tax credit. I would feel seriously mislead if this were not the case. Can somebody from Tesla comment on this please? Maybe this should be posted on the owners web site. I didn't see it there the other day.

 

[Tdave]

Maybe this should be posted on the owners web site. I didn't see it there the other day.

It's there, in the EV Incentives area. No replies yet.

If Tesla dropped the ball, it's a multi million dollar mistake on behalf of their customers.

 

[ChargeIt!]

At the bottom of the TeslaMotors.com web site it says "*Price includes $7,500 US federal tax credit. " And it's been like that for a long time ... meaning applicable to 2010 Tax Year and 2009 Tax Year (and of course probably earlier).

So they need to deliver on that "promise" ...

 

[qwk]

There was a post about this very topic here a while ago.
It was determined that the Roadster is not listed on the government website because it is a limited production vehicle. It does however, qualify for the maximum credit.

 

[Seneca_Chicago]

If anyone clicks the link at the bottom of the Tesla Motors website, it takes you to this .pdf

http://www.teslamotors.com/display_data/federal_tax_credit.pdf

 

[tennis_trs]

Has anyone seen anything which definitively indicates whether this tax credit will get reduced if you get hit by the AMT?

 

[Mark06GT]

If anyone clicks the link at the bottom of the Tesla Motors website, it takes you to this .pdf

http://www.teslamotors.com/display_data/federal_tax_credit.pdf

Good document, but there's still some conflicting wording. My 2010 roadster was purchased in August 2009. The document says the credit is only good for 2008 and 2009 models (I don't think there were any 2009 models, were there?), but it also says it's good for vehicles purchased before 1/1/2010, so that's what I'll be basing my taxes on.

Thanks for posting the link.

 

[mt2]

Good document, but there's still some conflicting wording. My 2010 roadster was purchased in August 2009. The document says the credit is only good for 2008 and 2009 models (I don't think there were any 2009 models, were there?), but it also says it's good for vehicles purchased before 1/1/2010, so that's what I'll be basing my taxes on.

Thanks for posting the link.

Bear in mind that the letter was written by the IRS and not Tesla. It is clearly boilerplate put together by an administrative aide who would have probably no idea that Tesla changed the designation of the 2009 model to 2010.

That said, a tax auditor probably wouldn't "get it" either. So Tesla might have to step in and straighten it out.

 

[dpeilow]

but it also says it's good for vehicles purchased before 1/1/2010.

So if one purchases a car today it doesn't qualify? Because the website still shows the rebate.

 

[qwk]

It still qualifies. It expires after something like 200k electric vehicles are built, or 2012, whichever comes first.

Like I said, there is a thread here somewhere about this exact topic with all of the exact details.

 

[tennis_trs]

...
Like I said, there is a thread here somewhere about this exact topic with all of the exact details.

General Forum->Off Topic->EV Incentives
Discusses the $7,500 tax credit some, but I believe the posts are old enough that the tax law probably wasn't settled enough then. There was also some discussion of the AMT's effect on the credit, with no apparent final word.

 

[qwk]

I'm sure you can find out about the details by calling Tesla.

 

[Lancelac]

So if one purchases a car today it doesn't qualify? Because the website still shows the rebate.

All it seems to imply to me is that a manufacturer must apply for the qualification every tax year. Most likely, no 2010 decisions have been made, and it just reminds tesla that they must send in a similar application for calendar 2010.

 

[bolosky]

The document says the credit is only good for 2008 and 2009 models (I don't think there were any 2009 models, were there.

The "model year" here is EPA's definition of model year, not Tesla's.

Model year means the manufacturer's annual production period (as determined by the Administrator) which includes January 1 of such calendar year: Provided, That if the manufacturer has no annual production period, the term model year shall mean the calendar year.

(See http://edocket.access.gpo.gov/cfr_2004/julqtr/pdf/40cfr86.082-2.pdf if you really care).

So, maybe it's a mistake on the IRS's part, or maybe they decided that Tesla doesn't have an annual production period, and it just means calendar year.

 

[Seneca_Chicago]

FYI

Qualified Vehicles Acquired Prior to 1-1-2010

Qualified Vehicles Acquired after 12-31-2009

Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)

Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.

The credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009). For additional information see Notice 2009-89.

Manufactures of the vehicles listed below have provided appropriate information and have received from the Service acknowledgement of the vehicles eligibility for the credit and the amount of the qualifying credit. The list of qualified vehicles provided below applies only to vehicles acquired after December 31, 2009.

Index to Manufacturers

Qualified Plug-in Electric Drive Motor Vehicles (IRC 30D)
Tesla

Page Last Reviewed or Updated: March 05, 2010

 

[ChargeIt!]

Are you (the IRS) confirming that 2008 and 2009 deliveries do NOT qualify for the credit ????? :frown:

 

[bolosky]

Are you (the IRS) confirming that 2008 and 2009 deliveries do NOT qualify for the credit ????? :frown:

No, the Roadster's on the "Acquired Prior to 1-1-2010" list.

 

[user497]

I live in NY and talked to my accountant last week about this and he let me know that the $7500 credit is subject to the AMT. So if you get hit by the AMT, you will get a smaller credit (just like you get a smaller credit for mortgage interest etc.). I assume most people that can afford a Tesla are hit by the AMT so in that case you won't get the entire $7500 (although depending on how hard the AMT hits you, it can still be several thousands of dollars). I would talk to my accountant, and what better time to do so now with tax season around the corner, to understand your exact situation.