Apologies if anyone has already answered this, but seeing as how the upcoming EV tax credit for sedans is limited to $55k, I'm assuming this is before sales tax? My current config (M3 LR, Black/Black) comes out to just over $52k before sales tax, but exceeds $55k if you include sales tax.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
EV Tax Credit before or after sales tax?
- Thread starter TLSAFan
- Start date
LoafPork
Member
Does this credit apply to first time EV purchases only?
Say I decide to take delivery of a MYLR next month (December) and then some time next year decide to sell it and upgrade to a MYP could I still get the credit?
Say I decide to take delivery of a MYLR next month (December) and then some time next year decide to sell it and upgrade to a MYP could I still get the credit?
As it currently stands, the credit is effective in 2022, so your december delivery will get 0. But if you wait 'til Jan 2022, then you can get full credit. AND, you can sell it and double dip again as long as you didn't buy MYLR with intend for resale. It's hard for IRS to prove either way, you're upgrading your car, not getting the same car.
Guys, tax credits are treated like mfr. rebates when it comes to sales tax. I don't know what "before or after tax" means, but the credit does not reduce the tax. So if the car is $55k and the credit takes the price down to $45k, the tax still applies to the $55k figure.
OP is asking if the $55k limit includes the price after or before sales tax. So if the car is $54,999, and has $5,000 in sales tax, would the car still qualify for the rebate based on the $54,999 sticker price, or disqualifed due to the $59,999 out the door cost?
The answer is, the car would still qualify for the rebate, sales taxes are not included in determining rebates such as the EV tax credit. The limit is based on the taxable portion of the sale, so it excludes things like the delivery, registration and sales tax fees.
Jeremy3292
Active Member
I’m pretty certain the current bill text says only one credit per household per year.
On the previous tax credit it would apply to multiple EVs though. For example, I bought two Model 3s in one year, $3,750 tax credit each.
Similar threads
