Federal Tax Credit - when and how ?

[VS_Tiger]

Hello Friends,

Newbie question here..

I've taken delivery of my Model S 70D on June 9th 2016. I have a few questions regarding the Federal tax credit.

1) Should I apply for this when I file my 2016 tax returns by April 15th 2017 ?
2) I'm using this link. https://www.irs.gov/pub/irs-pdf/f8936.pdf and the form says max credit is $2500 ? How do I get $7500 ?

Thanks for your time.

 

[FlatSix911]

Hello Friends,

Newbie question here..
I've taken delivery of my Model S 70D on June 9th 2016. I have a few questions regarding the Federal tax credit.

1) Should I apply for this when I file my 2016 tax returns by April 15th 2017 ?
2) I'm using this link. https://www.irs.gov/pub/irs-pdf/f8936.pdf and the form says max credit is $2500 ? How do I get $7500 ?

Thanks for your time.

You have the correct form, however Part B is the Business limitation of $2,500. For personal use you will receive a $7,500 credit

 

[msnow]

Hello Friends,

Newbie question here..

I've taken delivery of my Model S 70D on June 9th 2016. I have a few questions regarding the Federal tax credit.

1) Should I apply for this when I file my 2016 tax returns by April 15th 2017 ?
2) I'm using this link. https://www.irs.gov/pub/irs-pdf/f8936.pdf and the form says max credit is $2500 ? How do I get $7500 ?

Thanks for your time.

Plug-In Electric Drive Vehicle Credit (IRC 30D)
Note the $417 per kW up to max comment in 30D.
"For vehicles acquired after December 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."

 

[FlatSix911]

Also note that the tax credit will phase out sometime in 2018 for Tesla vehicles ...

Qualified Plug-In Electric Drive Motor Vehicle Credit (IRC 30D) Phase Out
The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which 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) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period

 

[sorka]

Hello Friends,

Newbie question here..

I've taken delivery of my Model S 70D on June 9th 2016. I have a few questions regarding the Federal tax credit.

1) Should I apply for this when I file my 2016 tax returns by April 15th 2017 ?
2) I'm using this link. https://www.irs.gov/pub/irs-pdf/f8936.pdf and the form says max credit is $2500 ? How do I get $7500 ?

Thanks for your time.

I just used Turbo Tax and it filled out 8936 for me and submitted online with the rest of the return.