Model 3 and the new WA incentive cut off at $35k

[EVNow]

For last few years we zero sales tax for all BEVs in WA. Sales tax here is almost 10% (since we don't have income tax).

The new incentive in WA is to have a hard cut-off of $35k.

I wonder what it means for Model 3.

Will Tesla really sell a $34,995 and let us add some options as aftermarket options ? Will Chevy do the same with Bolt.

 

[stopcrazypp]

For last few years we zero sales tax for all BEVs in WA. Sales tax here is almost 10% (since we don't have income tax).

The new incentive in WA is to have a hard cut-off of $35k.

I wonder what it means for Model 3.

Will Tesla really sell a $34,995 and let us add some options as aftermarket options ? Will Chevy do the same with Bolt.

GM has been clear the $30,000 price tag is after incentives, so expect $37,500 (maybe more if they are also counting state incentives).

Tesla says $35k is before incentives, but they might not be under $35k (but around).

 

[deonb]

Can Tesla sell the battery in a separate transaction?

 

[romp]

Would we get tax incentive for BEVs costing 35K or less only OR would we get tax incentive for the first 35K cost of any BEV?

If it's former, then Tesla will need to get creative. If it's later, then there's nothing to worry about.

Also, how "cost" or "price" is defined: is it the transaction amount OR is it the list price with no options added? Do other incentives (e.g. Federal) count?

 

[wallet.dat]

GM has been clear the $30,000 price tag is after incentives, so expect $37,500 (maybe more if they are also counting state incentives).

Tesla says $35k is before incentives, but they might not be under $35k (but around).

$35K in 2014 dollars, not counting inflation. So basically neither vehicle looks like it'll qualify

 

[Model 3]

$35K in 2014 dollars, not counting inflation. So basically neither vehicle looks like it'll qualify

It was $30k in 2012 dollars (or was it 2013?). So the $35k is counting inflation.

 

[EVNow]

Would we get tax incentive for BEVs costing 35K or less only OR would we get tax incentive for the first 35K cost of any BEV?

If it's former, then Tesla will need to get creative. If it's later, then there's nothing to worry about.

Hard cut off - so sales tax even if the car is one cent above the limit.

Also, how "cost" or "price" is defined: is it the transaction amount OR is it the list price with no options added? Do other incentives (e.g. Federal) count?

Most likely selling price without fed tax credits.
]

 

[bears]

pretty sure the estimated price of $35k for the Model 3 is AFTER tax incentives and gas savings.

 

[purplewalt]

pretty sure the estimated price of $35k for the Model 3 is AFTER tax incentives and gas savings.

No, that is incorrect information.
It has been stated MANY times by various Tesla Motors executives, the price will be $35K BEFORE incentives.

I don't expect many of the base model Units to be sold, as most people will add various battery and power Options/features to bring the price up.
However, if you were set on having a Tesla, you could purchase a base model for $35K.
Don't know if the US Federal Tax rebate will still be around, as it expires after first 200,000 units are sold, and they are well past 70,000 Units sold.

 

[Yggdrasill]

How about offering a Model 3 with worse servicing agreements in WA?

Like, you pay 34,950 for the car including a bunch of options, but services are required annually to keep the warranty, and cost 3k a pop for the first 3 years?

 

[brianman]

How about offering a Model 3 with worse servicing agreements in WA?

In a sense we already have something like that - no extended warranty in WA, still. Still sucks. Don't give them new ideas on how to make Tesla worse in WA state please.

 

[EVNow]

Like, you pay 34,950 for the car including a bunch of options, but services are required annually to keep the warranty, and cost 3k a pop for the first 3 years?

That might work.

The other way to do this would be to purchase supercharging later at a price.

I'm sure this hard $35k cut off in WA (and likely other states/federal level in the future) will make OEMs find work-arounds. That is the problem with hard cut-offs. This should have been a - no sales till for the first $35k incentive.

 

[Foxhound199]

Just thought now might be a good time to bump this thread. Now that the coming Model 3 and Bolt (and possibly next-gen Leaf?) will all have sticker prices starting just above $35k, this law is looking particularly stupid. Last night demonstrated to the world that if you build an electric car right, the demand will be there. The success of this next batch of $35k+ electric vehicles will be what determines if there is a future for affordable electric cars, and the state of Washington is doing nothing to help it succeed.

Any thoughts on what we can do to change that?

 

[ChadS]

The law was recently changed. Well, it hasn't been signed by the governor yet, but I assume he will. The current version is HERE.

As long as the BASE PRICE of the car is under $42,500 and it has over 100 miles of range, sales tax will be waived on the first $32k. (So it still won't cover the S or X, or the i3 REX. Or i8 or other halo PEVs. It covers the i3 BEV now, but may not come July when they offer 120-mile battery. Maybe it will if they keep the current base price and the bigger battery is an option).

The bad news is that this is limited to about 7,500 cars (well, it expires shortly after notice of hitting that). How many will be purchased in WA before the 3 arrives? Note that the counting actually started on July 1 2015. I think chances are good it will run out just about when the 3 arrives, so we may have a few lucky buyers and we may not.

 

[Foxhound199]

Whoa, how did I not know anything about that? Surely the governor will sign it, clean energy is kinda his thing. Seems like the kind of thing that they would just evaluate and hopefully extend once it gets close to reaching that cap.

 

[ChadS]

Well, he did just veto 27 bills that included some he had requested...

But yeah, I expect he will sign this. The tough part will be getting that 7,500-car limit raised next year. A lot of legislators were claiming they had to limit the number of cars because the state "can't afford it", but of course they were ignoring the fact that in-state EV sales are a money maker. The state can't afford to not do it! I suspect some of them really have other reasons and will continue their opposition.

 

[ItsNotAboutTheMoney]

The law was recently changed. Well, it hasn't been signed by the governor yet, but I assume he will. The current version is HERE.

As long as the BASE PRICE of the car is under $42,500 and it has over 100 miles of range, sales tax will be waived on the first $32k.

The bad news is that this is limited to about 7,500 cars (well, it expires shortly after notice of hitting that). How many will be purchased in WA before the 3 arrives? Note that the counting actually started on July 1 2015. I think chances are good it will run out just about when the 3 arrives, so we may have a few lucky buyers and we may not.

Definitely not any GM lobbying on that change at all, no sir.

 

[ChadS]

The GM lobbyist was indeed active on this bill. But I don't think (though I could be wrong) GM suggested the 7,500 limit. Especially since I doubt the Bolt will get to WA until about the time this credit runs out too...GM says they "haven't decided" on how to distribute the Bolt, so I suspect that means it will be distributed the way they have done with their other PEVs, and it will go to ZEV states first.

The Bolt will be available in CA well before the Model 3, but in WA I am not so sure there will be much difference.

 

[nwdiver]

You still get the first ~$30k tax free... so it's not like you have to pay taxes on a $40k car but not a $30k car. You're only paying taxes on every dollar over the cutoff.

 

[wilhelmspencer]

Will be following this legislation closely. Thanks for the information everyone.