End of quarter delivery disruption coming up?

[Kairide]

It’s interesting to see people’s opinion when the shoe is on the other foot. When people ordered after Tesla increased prices people tell them too bad, you knew what the prices were when you ordered. Or the ones I love are when someone orders a Tesla and the price drops right after they take delivery. They’re told too bad, you bought at a certain price, live with it.
Those who ordered months ago and are taking delivery in 2021 locked in a cheaper price, but lose out on incentives. Unless you were living under a rock, everyone knew the EV tax/point of sale changes were floating around. You decided not to wait and your reward was a cheaper price.
If you like the terms of the purchase of a Tesla now, better than when you ordered, cancel and re-order.
Those who ordered recently paid more, but may get the incentive.
With anything in life, prices will change, technology will change, at a certain point you just need to buy what you want and be happy with it.
If not, you’ll just keep waiting for the next iPhone and find yourself using a 10 year old phone because you kept waiting out for something better year after year.

 

[Tommy L Garage]

I thought Tesla was excluded from the proposed tax credit due to its non union labor workforce?

Either way, tax credit or not, I would not delay. My YP is scheduled for Dec 21-31 (delayed from Nov5 - Dec 3). Waiting for this car feels like being back in communist Eastern Europe in the 80s

 

[Spidey616]

I thought Tesla was excluded from the proposed tax credit due to its non union labor workforce?

Either way, tax credit or not, I would not delay. My YP is scheduled for Dec 21-31 (delayed from Nov5 - Dec 3). Waiting for this car feels like being back in communist Eastern Europe in the 80s

Only part of it. Looks like Tesla purchasers would get $8k right now.

 

[trlengle]

With the proposed 400/600/800k income limits to quality for the credit, though, there's plenty of coastal folk who won't be able to qualify. There will be plenty of people ready to take delivery.

If you exceed the income limits do you get no tax credit or just partial tax credit?

 

[leaftoy]

If you exceed the income limits do you get no tax credit or just partial tax credit?

There is no phase out as it is currently written (at least what has been released). And now the limits are lower (500k MFJ). Make $499,999.99 as a couple you get full credit. Make $500,000.00 you get zero.

 

[hobbesH]

If you exceed the income limits do you get no tax credit or just partial tax credit?

The credit is phased out by $200 for each $1,000 of the taxpayer’s modified adjusted gross income as exceeds $500,000 for married filing jointly, $375,000 for head of household, and $250,000 in any other case. For a given taxable year, the taxpayer may use modified adjusted gross income for that year or the immediately preceding year, whichever is lower.

Or as formally written in the current draft:

‘‘(1) IN GENERAL.—The amount of the credit allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which—
‘‘(A) the lesser of—
‘‘(i) the taxpayer’s modified adjusted gross income for such taxable year, or
‘‘(ii) the taxpayer’s modified adjusted gross income for the preceding taxable
year, exceeds

Check the latest draft here (it's in section 136401):

H.R.5376–Build Back Better Act

RULE I COMMITTEE ACTION: REPORTED BY A RECORD VOTE of 9-4 on Thursday, November 4, 2021. FLOOR ACTION ON H. RES. 774: Agreed to by record vote of 221-213, after agreeing to the amendment offered by Mr. McGovern by unanimous consent, after agreeing to the previous question by record vote of...

rules.house.gov

 

[leaftoy]

The credit is phased out by $200 for each $1,000 of the taxpayer’s modified adjusted gross income as exceeds $500,000 for married filing jointly, $375,000 for head of household, and $250,000 in any other case. For a given taxable year, the taxpayer may use modified adjusted gross income for that year or the immediately preceding year, whichever is lower.

Or as formally written in the current draft:

‘‘(1) IN GENERAL.—The amount of the credit allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which—
‘‘(A) the lesser of—
‘‘(i) the taxpayer’s modified adjusted gross income for such taxable year, or
‘‘(ii) the taxpayer’s modified adjusted gross income for the preceding taxable
year, exceeds

Check the latest draft here (it's in section 136401):

H.R.5376–Build Back Better Act

RULE I COMMITTEE ACTION: REPORTED BY A RECORD VOTE of 9-4 on Thursday, November 4, 2021. FLOOR ACTION ON H. RES. 774: Agreed to by record vote of 221-213, after agreeing to the amendment offered by Mr. McGovern by unanimous consent, after agreeing to the previous question by record vote of...

rules.house.gov

So completely gone by the time MFJ hits 540k or single filer hits 290k? Unless someone is buying from a union shop, in which case the corresponding numbers are 562.5k and 312.5k?

 

[leaftoy]

There is no phase out as it is currently written (at least what has been released). And now the limits are lower (500k MFJ). Make $499,999.99 as a couple you get full credit. Make $500,000.00 you get zero.

Sounds like this is incorrect.

 

[hobbesH]

So completely gone by the time MFJ hits 540k or single filer hits 290k? Unless someone is buying from a union shop, in which case the corresponding numbers are 562.5k and 312.5k?

Yes, that's my understanding.

 

[trlengle]

The credit is phased out by $200 for each $1,000 of the taxpayer’s modified adjusted gross income as exceeds $500,000 for married filing jointly, $375,000 for head of household, and $250,000 in any other case. For a given taxable year, the taxpayer may use modified adjusted gross income for that year or the immediately preceding year, whichever is lower.

Or as formally written in the current draft:

‘‘(1) IN GENERAL.—The amount of the credit allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which—
‘‘(A) the lesser of—
‘‘(i) the taxpayer’s modified adjusted gross income for such taxable year, or
‘‘(ii) the taxpayer’s modified adjusted gross income for the preceding taxable
year, exceeds

Check the latest draft here (it's in section 136401):

H.R.5376–Build Back Better Act

RULE I COMMITTEE ACTION: REPORTED BY A RECORD VOTE of 9-4 on Thursday, November 4, 2021. FLOOR ACTION ON H. RES. 774: Agreed to by record vote of 221-213, after agreeing to the amendment offered by Mr. McGovern by unanimous consent, after agreeing to the previous question by record vote of...

rules.house.gov

$500k for married…they revise that down from $800k?

 

[hobbesH]

$500k for married…they revise that down from $800k?

Yes. They made the tax credit refundable. I guess to keep the cost down, the thresholds have been lowered accordingly.

 

[trlengle]

Yes. They made the tax credit refundable. I guess to keep the cost down, the thresholds have been lowered accordingly.

Bummer

 

[leaftoy]

Yes. They made the tax credit refundable. I guess to keep the cost down, the thresholds have been lowered accordingly.

Given that people with MFJ AGI range in 500-800k is a small number, and a small percentage of them may buy EVs in the years this tax credit is active, how much are they saving really by changing this? I wouldn't be surprised though if the AGI limit gets revised by the time we are done with this piece of legislation.

 

[Corndart]

Given that people with MFJ AGI range in 500-800k is a small number, and a small percentage of them may buy EVs in the years this tax credit is active, how much are they saving really by changing this? I wouldn't be surprised though if the AGI limit gets revised by the time we are done with this piece of legislation.

Agreed. They were tweaking trying to get it into the larger infrastructure legislation Now that they've "componetized" different facets of the thing, who knows where this one will wind up. Read a really interesting article today in NYT regarding how previously "not very interested in EV's / clean energy" elected officials are doing a 180 since they see the job creation in their legislative districts.

Opinion | Why Are Republicans Now Loving the Sweet Sound of Electric Vehicles?

Ford’s plans for multi-billion dollar manufacturing sites for electric vehicles has Tennessee and Kentucky singing a different tune on cleaner energy.

www.nytimes.com

 

[hobbesH]

Given that people with MFJ AGI range in 500-800k is a small number, and a small percentage of them may buy EVs in the years this tax credit is active, how much are they saving really by changing this? I wouldn't be surprised though if the AGI limit gets revised by the time we are done with this piece of legislation.

Yes. So is the number of low-income people who will benefit from a refundable tax credit and at the same time can and will spend money on new EVs. So it looks to me now more like a gesture move, to progressives.

 

[mattnis]

I may be against the grain on this one, but I don't think Tesla should let people delay delivery for this reason. When you order, you're fully aware of the current pricing and any incentives. Depending on when you ordered, the price increases may negate the point of sale or tax incentive offered anyways. If you're not happy with what is offered when you order, then you should wait. Either take delivery based on the financials of what was offered when you ordered or cancel and move to the back of the line.

Yes, the greedy price increase is to offset the incentive.

 

[Oddmanout]

I thought this, but in reality Tesla will just send everything that they produce up to Canada to fill the massive backlog up there since they don't have any tax incentives as of now.

I'm from Canada, and am hoping cancellations move me up the list. Would love to celebrate a Tesla Christmas.

 

[d4vid]

I’m in same boat. My MYP has EDD of Dec15-31. I have an email into my SA to ask about if I can delay

Let's us know what they said. I'm in same boat, same delivery date.

 

[JayhawkCRNA]

Let's us know what they said. I'm in same boat, same delivery date.

My EDD is now 12/1-12/329. When I contacted the sales team at my store, I told them we were going to be out of town for the holidays most all of December. I asked if the car was completed when i was out of town could I pick up first week of January when I was back. They said no problem but they were hoping to deliver to me before I would be leaving for holidays

 

[commonplace]

I ordered about a week ago (November 16) with an ETA of June 2022. A few days ago, it leapt up to "December 16 - December 31, 2021). I will definitely be delaying (or canceling if I have to) as I am only moving forward with the purchase if I get the tax credit. I would have never, ever imagined that it would move up seven months. I guess it's because of the amount of people delaying/deferring. As much as I'd love to have the MY by EOY, I'm not leaving $7,500-8k on the table. If I go to the back of the line, that's totally understandable—I was expecting June 2022 anyway (hoping for sooner, but not "December 2021" sooner).