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Is my $7500 tax credit in jeopardy

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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.

For starters it adds $7,500 to the price of every person anxiously waiting on that long Model 3 preorder list.
 
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.

I categorically disagree. I think it will hurt Tesla the least, but adding $7500/$3250 to the price of every electric vehicle sold over the next two years is going to cost them some business.
 
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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.

There's a pretty good discussion about the estimate of when the 200,000 US car will be sold here:
Estimate when 200,000 cars will be sold? | Tesla
 
I agree in the short term it hurts Tesla.....................that's obvious. But 2 years from now when car companies come out with their own EV's Tesla will be on equal footing, price wise. The long look it's a benefit to Tesla. Not good for people like me with a Model 3 reservation and most likely would have gotten the full credit.
 
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For starters it adds $7,500 to the price of every person anxiously waiting on that long Model 3 preorder list.
The topic was about relative benefit to Tesla, and not about an individual consumer. The original thesis was 'White House is trying to screw Elon". I just mentioned that in fact, Elon gained in the form of potentially millions of competitor vehicles (approx 200K x number of makers) being unable to command a federal subsidy he no longer had.

I'm not speaking about the individual customer at all. Sure, they all pay potentially 7.5K more - unless companies reduce prices to make up volumes at the cost of margin. And Tesla loses business on account of marginal buyers who find the gross price without the subsidy too rich. So does every other manufacturer, so net net, Tesla stands to benefit, having used up most of their subsidy, and then seeing that their competition may not get it at all.
 
Wonder if wiping out that tax credit was a subtle ****-you to Elon for quitting the panel he was on.

If so, this actually helps Elon's case, He's already been advocating ending ALL energy subsidy - electric incentives included as they favor low scale production, but larger scale energy government aid on oil absolutely needs to end as well. Ending the EV incentive alone only just underscores how much money remains directed into oil subsidies. All of that is coming from taxpayers, and drawing attention to this fact only helps look to the future.
 
If so, this actually helps Elon's case, He's already been advocating ending ALL energy subsidy - electric incentives included as they favor low scale production, but larger scale energy government aid on oil absolutely needs to end as well. Ending the EV incentive alone only just underscores how much money remains directed into oil subsidies. All of that is coming from taxpayers, and attention to this fact only helps look to the future.
Elon might be all for ending all sorts of tax code incentives but he doesn't have much backing, he's playing the game very naively, the interests backing many of the tax code breaks are far better placed and entrenched than Elon is, idealism can only go so far in the swampiness of politics, especially politically infused tax policies. as I alluded to in another thread, every tax carve out has a constituency that will use their clout to preserve their piece of the pie.
 
The best way to gain support is for the opposition to prove themselves hypocrites, which this proposal has already accomplished.

This bill is failing regardless, it isn't gaining traction due to that hypocrisy - it's said to favor the wealthy (and does somewhat if you're extremely lenient with your definition of wealthy, by nature of how the credit is structured since it is not attainable if the buyer doesn't earn enough to pay $7500 or more in their annual tax burden) yet the same bill has all sorts of cuts for actual wealth as well. This was easy hypocrisy to point out and harms their otherwise potentially valid criticism of the credit alone.
 
The best way to gain support is for the opposition to prove themselves hypocrites, which this proposal has already accomplished.

This bill is failing regardless, it isn't gaining traction due to that hypocrisy - it's said to favor the wealthy (and does somewhat if you're extremely lenient with your definition of wealthy, by nature of how the credit is structured since it is not attainable if the buyer doesn't earn enough to pay $7500 or more in their annual tax burden) yet the same bill has all sorts of cuts for actual wealth as well. This was easy hypocrisy to point out and harms their otherwise potentially valid criticism of the credit alone.
I'm not going to go down the path of starting a political pissing match. however if you took a few minutes and conduct a minimal amount of research it might highlight to you exactly what segment of taxpayers pay the largest portion of income taxes collected.
the fallacy of bailing out the rich is foisted by some politicians, it is just a canard used by the liberal side of the coin to pander to the masses of ignorance in the nation.
 
if you cannot claim it on this year's tax return you might be able to carry it forwards. consult a pro for the proper advice for your situation
Nearly positive you can’t carry it over.

Car went into Service in 2017 means has to be be on 2017 taxes (filed April 2018 or later).

Question is if there was some way to get the credit sooner than April (maybe quarterly filing?)
 
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Nearly positive you can’t carry it over.

Car went into Service in 2017 means has to be be on 2017 taxes (filed April 2018 or later).

Question is if there was some way to get the credit sooner than April (maybe quarterly filing?)
you've hit the outer boundaries of what I can offer advice wise, maybe others can offer better insights, however I think I carried part of my credit forward way back. however all I do is sign my return.
 
if you took a few minutes and conduct a minimal amount of research it might highlight to you exactly what segment of taxpayers pay the largest portion of income taxes collected.
the fallacy of bailing out the rich is foisted by some politicians, it is just a canard used by the liberal side of the coin to pander to the masses of ignorance in the nation.

In the case of the EV tax credit, there is no question of who benefits. It is not a refund check. You and I were able to attain that credit because it came out of taxes we had already paid. Model 3 buyers are often assumed to earn less on average, and if they earn less than the ~$60,000 or so that is required to pay $7500 in federal income tax, they are already ineligible for that full credit.

The system was set up as a credit that only works to its fullest for people who earn above the median income level in the US. This is not something that specifically helps "the wealthy" but it does not apply equally at all to people, the less you earn below that ~$60k the less it applies.

I believe some ignorance is in play with new Model 3 buyers believing this acts like a refund check of exactly $7500 rather than a credit against taxes already paid. Too many people say they can't afford at $35k car but with the credit can afford a $27k car, and that makes me think they aren't earning enough to get that full credit. If it applied to those people it would be a lot more effective, as they need the credit more than we did. For us that might have been a difference of adding a Performance Plus package or autopilot, for them it may make or break the ability to afford the car at all.

It's easy to see how people argue the credit is inequal, even if you support the credit in general.
 
The system was set up as a credit that only works to its fullest for people who earn above the median income level in the US. This is not something that specifically helps "the wealthy" but it does not apply equally at all to people, the less you earn below that ~$60k the less it applies.

again, not quite right, if you lease the car, the lessor get the benefit of the credit, flows it through on the basis price lowering the lease cost and that is regardless of the lessee's tax status
I believe some ignorance is in play .

there is no chance of there ever being a shortage of ignorance when dealing with any large groups of people regardless of who they are or what the subject is.
 
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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
Thanks, that was what I had thought, but was still concerned. I have taken delivery, so it looks like I'll have no issues.