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Heads up for the Maryland EV Excise tax credit

Discussion in 'Mid-Atlantic' started by TD_alseT, Aug 4, 2018.

  1. TD_alseT

    TD_alseT Member

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    3 quick notes about the MD excise tax credit conditions:

    - The total purchase price of the car cannot exceed $60K.
    - This INCLUDES the destination and delivery charge
    - Your trade-in reduces the purchase price

    (Purchase price is the total price of the car + options + destination and delivery charges minus the value of any trade-in.)

    Just a heads up if the destination and delivery charges put you over $60K. if you are considering a trade, this may help you make your trade in decision.

    Good luck!

    - TD
     
  2. hokiefan

    hokiefan Member

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    Mine is exactly $60k, so should be good to go :) Hopefully the fund doesn't run out of money before I get mine!

    upload_2018-8-4_20-49-19.png
     
    • Like x 2
  3. Vikj928

    Vikj928 Member

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    I take delivery in 3 weeks at Owings Mills. I called them and the sales manager told me the price must by under $60k and the trade in doesn’t reduce the price?? I guess he just had no clue? Thanks for the information. I was concerned about the exicse credit.
     
  4. TD_alseT

    TD_alseT Member

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    #4 TD_alseT, Aug 4, 2018
    Last edited: Aug 4, 2018
    unfortunately, it will be based upon what the sales team certifies as the purchase price on form VR-334, BUT it seems like it is being interpreted differently by different people. See if this helps (start with page 46; detailed on page 48+): http://www.mva.maryland.gov/_resources/docs/Interactive-Title-and-Registration-Manual.pdf
     
  5. VT_EE

    VT_EE Member

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    The "trade-in reduces the price" sounds fishy. Trade-ins do reduce your tax bill, but I have a hard time believing the MVA will reduce the purchase price for purposes of the EV credit. Has anybody called the MVA to ask?
     
  6. VT_EE

    VT_EE Member

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    The verbage on the MVA website says: "Has a total purchase price not exceeding $60,000". $60k Here's the link: Titling - Excise Tax Credit for Plug-in Electric Vehicles
     
  7. TD_alseT

    TD_alseT Member

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    #7 TD_alseT, Aug 4, 2018
    Last edited: Aug 4, 2018
    Alpinebum1, I posted a doc, from the MVA, above with purchase price details. AND, independently, a trade in should reduce your excise taxes: "Excise tax is 6% of the price certified by the dealer, less trade-in allowance, with no allowance for down payment or manufacturer’s rebate. Maryland dealers may charge a processing fee up to $300.00. This processing fee must be added to the purchase price and is taxable." (page 9)
     
  8. Barnaby

    Barnaby Member

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    You and me both! When is your delivery
     
  9. hokiefan

    hokiefan Member

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    No VIN yet. Reserved 5/29, ordered 6/28. I'm guessing September, maybe october?
     
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  10. CUBldr97

    CUBldr97 Member

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    So If I buy the P3 for $80k and get more than $20k in a trade in then Im good?
     
  11. VT_EE

    VT_EE Member

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    Call the MVA to find out. I’m not convinced the trade in reduces the purchase price for purposes of the EV credit. Call and let us know what you find.
     
  12. bro1999

    bro1999 Active Member

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    The wording seems a bit ambiguous, as it says a vehicle "with total purchase price not exceeding $60k" is eligible for the credit. It doesn't ask to list the MSRP of the vehicle, but rather the "total purchase price". I still think "purchase price" equals the price of the car BEFORE any trade-in credit is factored in. But if you want to try and claim the credit with a car that has a sales price higher than $60k, the worst that can happen is they deny your application.
     
  13. CUBldr97

    CUBldr97 Member

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    So after a conversation with the MVA the purchase price is AFTER trade in.... So a P3D could get the rebate if you have a trade over $20k
     
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  14. bro1999

    bro1999 Active Member

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    Wow, that's surprising. So someone could theoretically receive a full $3k for even their fully loaded P100DL if their trade-in was expensive enough. Interesting.
     
  15. Barnaby

    Barnaby Member

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    #15 Barnaby, Aug 6, 2018
    Last edited: Aug 6, 2018
    You didn't get the reference for that definition of "purchase price" did you? It seems counterintuitive, and could lead to a $3,000 mistake.

    Edit: Never mind, I went back and read the reference quoted above. It's right there, I just had to read it a couple of times to be sure! :)
     
  16. TD_alseT

    TD_alseT Member

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    just trying to help, guys....
     
  17. CUBldr97

    CUBldr97 Member

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    so now my question is if i have a $40k trade in value... and owe $30k does that mean my purchase price is only affected by $10k, or is that irrelevant and only matters to my bank and the loan i get? obviously have to pay off the car in some way so tesla gets the title...
     
  18. Teslie

    Teslie Banned

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    I would think a trade-in is a way of payment. Can‘t reduce the purchase price.
     
  19. VT_EE

    VT_EE Member

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    In Maryland, they deduct the value of a trade-in from the new vehicle sales price when calculating sales tax. It saves you from paying tax on vehicle value you already paid tax on.
     
    • Like x 1
  20. dxrey128

    dxrey128 New Member

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    per the tesla configurator you are getting the 3k MD credit if car price is under 60k. No including the doc and delivery for 1200now
     

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