TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC

Is my $7500 tax credit in jeopardy

Discussion in 'Model S' started by Ken7, Nov 3, 2017.

Tags:
  1. Ken7

    Ken7 Member

    Joined:
    Feb 11, 2017
    Messages:
    622
    Location:
    New York
    Please please, let’s not make this political, but if the new tax reform plan goes through, will this eliminate the $7,500 tax credit on my just purchased Model S? That would be quite a hit.

    Logically, I would think that the new plan would not be retroactive to 2017, but rather going forward to 2018.

    Any tax accountants out there with some idea?
     
  2. Az_Rael

    Az_Rael Supporting Member

    Joined:
    Jan 26, 2016
    Messages:
    4,465
    Location:
    Palmdale, CA
    Are you waiting for delivery? If so, than, yes, your $7500 is in jeopardy. You need to take delivery before 12/31/17 if the legislation passes.

    The way the credit works, it’s based on the in service date for the car, so you can’t just pay up front, you have to actually get the vehicle.


    If the $7500 is critical, you could see if there is an inventory car that fits your needs that might arrive before the end of the year.


    If you already have your car, then you are good. The proposal doesn’t retroactively apply it to 2017, and I seriously doubt they will change it to do that
     
    • Like x 5
  3. Tiger

    Tiger Active Member

    Joined:
    Oct 31, 2016
    Messages:
    1,076
    Location:
    Estonia
  4. croman

    croman Active Member

    Joined:
    Nov 21, 2016
    Messages:
    3,765
    Location:
    Chicago, IL
    Its not retroactive but I wouldn't put it past them.
     
  5. kort677

    kort677 Banned

    Joined:
    Sep 17, 2015
    Messages:
    4,853
    Location:
    florida.
    no, I do not believe that if the credit is repealed that it would be retroactive to past purchases, as long as you take delivery prior to the legislative passage and signature of the president enacting the legislation.
     
    • Like x 1
  6. deonb

    deonb Supporting Member

    Joined:
    Mar 4, 2013
    Messages:
    3,783
    Location:
    Redmond, WA
    • Informative x 2
    • Like x 1
  7. dragoljub

    dragoljub Member

    Joined:
    Feb 16, 2017
    Messages:
    291
    Location:
    Los Altos, CA
    For those of us who purchased in 2017 there is some sigh of relief. Hope it does not go through so Model 3 has more demand.
     
  8. kort677

    kort677 Banned

    Joined:
    Sep 17, 2015
    Messages:
    4,853
    Location:
    florida.
    there may be a ton of demand, but getting cars out the door is the issue here. even clearing the backlog of orders in the next 12-18 months seems out of the picture.
     
  9. spooky981

    spooky981 Member

    Joined:
    Aug 27, 2016
    Messages:
    90
    Location:
    Washington DC
    Wonder if wiping out that tax credit was a subtle ****-you to Elon for quitting the panel he was on.
     
    • Like x 1
  10. kort677

    kort677 Banned

    Joined:
    Sep 17, 2015
    Messages:
    4,853
    Location:
    florida.
    moves, counter moves.
    IMHO elon was foolish for the attitude he displayed regarding that ceremonial council, he acted out in the kabuki theater aspect of politics, got a headline or two but didn't think of the long term affects of kicking sand in face of the deal/rule makers.
     
    • Like x 4
    • Disagree x 1
  11. jmitchell

    jmitchell Member

    Joined:
    Jul 28, 2017
    Messages:
    35
    Location:
    Sacramento, CA
    I don't think it'll change demand all that much. Most people on the list know they won't be getting the full incentive.
     
  12. kort677

    kort677 Banned

    Joined:
    Sep 17, 2015
    Messages:
    4,853
    Location:
    florida.
    how do you come to that conclusion? a large number of people lease their tesla and the $7500 is built into the equation so those people do get the full benefit of that credit. the only ones who forsake the full benefits of the tax credits are the ones who either are not able to meet the reported income threshold or do not file itemized returns. I cannot say for certain what the size of that group is but I bet that it isn't most.
     
    • Like x 1
  13. Ross9733

    Ross9733 Member

    Joined:
    Aug 26, 2017
    Messages:
    105
    Location:
    Dix hills, ny
    Honestly, the ending of the credit would be a gift to tesla. They are getting to 250k next regardless of the tax credit and will sell lots of model 3 cars without the credit. However tesla issue will be in 2 years when bmw Porsche Volvo etc come to market with their own EV’s that will be eligible for the credit when Tesla’s will not.
     
    • Like x 12
  14. ucmndd

    ucmndd Active Member

    Joined:
    Mar 10, 2016
    Messages:
    2,543
    Location:
    California
    Agree. The way this credit was structured is really screwy, to the point of eventually penalizing the market leaders who are generating the most sales. It would be better for Tesla for the current version to go away entirely and put them on equal footing with their competitors.
     
  15. kort677

    kort677 Banned

    Joined:
    Sep 17, 2015
    Messages:
    4,853
    Location:
    florida.
    government at work?
     
  16. Pandamoanium

    Pandamoanium Member

    Joined:
    Jul 8, 2016
    Messages:
    612
    Location:
    Colorado
    It shouldn't. I believe it's based on delivery or day of sale technically and not based on when you go to register the vehicle. Now if for some reason it's based on registration and you're temp goes beyond 2017...
     
  17. Uncle Paul

    Uncle Paul Active Member

    Joined:
    Nov 1, 2013
    Messages:
    2,993
    Location:
    Canyon Lake,CA
    If adopted as written, everybody who takes delivery before the end of 2017 will be eligible.
    After Jan 1, 2018, no more tax credit.

    It may be changed to reduce the tax credit next year, or put a income ceiling on elegibility, nobody knows for sure now.
     
    • Like x 1
  18. suraj1194

    suraj1194 Member

    Joined:
    Jul 19, 2016
    Messages:
    315
    Location:
    Bay Area CA
    How does it hurt Elon ? His company is the closest to losing the credit due to the phaseout clause, as Tesla is the closest to it. He stood to lose the most when Tesla ran out of the credit - while his competitors retained the benefit. Now that everyone's losing it in one stroke, every one of his competitors who could otherwise command a $7500 tax benefit on at least 200K cars each, no longer have that price competitiveness vs Tesla. And those like GM who have partially used up their benefit, lose their remaining runway.
     
    • Like x 1
  19. scottf200

    scottf200 Active Member

    Joined:
    Feb 3, 2013
    Messages:
    2,484
    Location:
    Chicagoland ModelX S603
    #19 scottf200, Nov 3, 2017
    Last edited: Nov 3, 2017
    What about the other big players here ... won't General Motors, Ford, Nissan, Tesla, BMW, Kia, and more, etc use their political pull to try to stop this?

    InsideEVs: By year’s end, GM should be around 167,000 sales, while Tesla just over 160,000.
     
  20. croman

    croman Active Member

    Joined:
    Nov 21, 2016
    Messages:
    3,765
    Location:
    Chicago, IL
    They don't care about EVs (except Nissan). Nissan probably has used almost as many credits up as Tesla. 100k in Jan 2017. Tesla is at like 140k. I think Nissan is probably at 120k with Leafs in US. But GM also used up a lot of their credits on the Volt (even though it only got part of the credit).

    The fact is that most companies don't care. ICE cars are the money makers.
     

Share This Page

  • About Us

    Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.
  • Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


    SUPPORT TMC