Official: 7,500 Tax Credit for deliveries before Dec 31 2018

[plasmo]

Thanks for this information.
In order to receive the tax credit when doing my 2018 taxes next year, is there anything that needs to be filled out or some proof that needs to be given to my accountant to apply for the credit?

 

[wdolson]

There is a form to fill out with your taxes next year. Tax software has the form built in and will prompt you in the tax credits section. I recall the form includes the VIN of the car, the make, model, and date of purchase. The IRS already has a record of all qualifying VINs from the manufacturer, so they probably check the form against their database.

From your sig you already have an S and X didn't you claim the credit for those cars?

 

[plasmo]

From your sig you already have an S and X didn't you claim the credit for those cars?

Thx for the info.
The X and S are lease so I didn’t qualify for tax credits in Illinois. The 3 was purchased.

 

[Need]

Thanks for this information.
In order to receive the tax credit when doing my 2018 taxes next year, is there anything that needs to be filled out or some proof that needs to be given to my accountant to apply for the credit?

I added the MVPA to all the files I upload to my accountant's vault, and send her a quick email to let her know. She took care of the rest. So all your accountant should need is the MVPA.

 

[ℬête Noire]

Thanks for this information.
In order to receive the tax credit when doing my 2018 taxes next year, is there anything that needs to be filled out or some proof that needs to be given to my accountant to apply for the credit?

For last year my accountant tried to independently verify GM's vehicle count hadn't reached 200K trigger by the date of my Bolt purchase by going to the IRS's page that lists reported counts by manufacturers. Problem was that GM, like Tesla, didn't publicly reports those. By law they aren't required to until when they haven't reached 200,000. I'm not sure what he did in the end to stratify himself that he'd done his due diligence that he wasn't filing a return for a vehicle that wasn't eligible? But for their own protection (so they don't get on the IRS's crap list) a credible accountant will want to confirm this, filing bad papers just because a client asks them too isn't good for their business (or their other clients).

Hopefully for 2018 though that page will have Tesla's numbers/eligibility dates up on that page as I believe they are required to public give their delivery count once they hit 200K. I don't recall the exact page but it was on the IRS site.

 

[mongo]

For last year my accountant tried to independently verify GM's vehicle count hadn't reached 200K trigger by the date of my Bolt purchase by going to the IRS's page that lists reported counts by manufacturers. Problem was that GM, like Tesla, didn't publicly reports those. By law they aren't required to until when they haven't reached 200,000. I'm not sure what he did in the end to stratify himself that he'd done his due diligence that he wasn't filing a return for a vehicle that wasn't eligible? But for their own protection (so they don't get on the IRS's crap list) a credible accountant will want to confirm this, filing bad papers just because a client asks them too isn't good for their business (or their other clients).

Hopefully for 2018 though that page will have Tesla's numbers/eligibility dates up on that page as I believe they are required to public give their delivery count once they hit 200K. I don't recall the exact page but it was on the IRS site.

Given the quarter delay in phase out, I'm not sure what your accountant was woried about...

Per IRS rules/ law, you can rely on the OEM's certification of the rebate amount provided at time of purchase (even if it turns out that were wrong. Based on the law as I read it, cars sitting on lots at the dealer count toward the 200k)

02 Purchaser’s Reliance. Except as provided in section 5.07 of this notice, a purchaser of a motor vehicle may rely on the manufacturer’s (or, in the case of a foreign vehicle manufacturer, its domestic distributor’s) certification concerning the vehicle and the amount of the credit allowable with respect to the vehicle (including in cases in which the certification is received after the purchase of the vehicle).

Internal Revenue Bulletin: 2009-48 | Internal Revenue Service

 

[ℬête Noire]

Given the quarter delay in phase out, I'm not sure what your accountant was woried about...

He had no background in the topic, so wanted actual numbers or an official statement of some sort, something beyond of my assurances about 3rd party sales reports and it not being even close.

Per IRS rules/ law, you can rely on the OEM's certification of the rebate amount provided at time of purchase (even if it turns out that were wrong. Based on the law as I read it, cars sitting on lots at the dealer count toward the 200k)

I couldn't find anything in any of my sales paperwork from the Chevy dealership on it.

P.S. I recently went through all my papers again during filing for the $2500 TX EV rebate, still didn't see anything on it. ¯\_(ツ)_/¯

EDIT: Eventually my accountant just filed it, no idea what put eventually his mind at rest. Maybe he just did some Google searches or got hold of someone in his accountant rolodex that had more specialized knowledge on the matter, or it's possible he even has an IRS contact that got it sorted for him. It didn't occur to me to ask him what it was.

EDIT2: I definitely will check all my Tesla paperwork for it though. It's possible that the Chevy dealership didn't know they were supposed to include that stuff. EVs not being their main line of sales, it is a hole in their process.

 

[xav-]

What are the chances that he base car ships before June30 next year?

 

[ℬête Noire]

What are the chances that he base car ships before June30 next year?

SR sans the PUP? I'll be surprised if there aren't some shipped by then. However if they aren't it'll be amazing news for Tesla's financials as it suggests they'd have so much demand with the higher margin variants that they can't spare the production capacity.

 

[wdolson]

Thx for the info.
The X and S are lease so I didn’t qualify for tax credits in Illinois. The 3 was purchased.

Ah that makes sense. I forgot about leases.

Given the quarter delay in phase out, I'm not sure what your accountant was woried about...

Per IRS rules/ law, you can rely on the OEM's certification of the rebate amount provided at time of purchase (even if it turns out that were wrong. Based on the law as I read it, cars sitting on lots at the dealer count toward the 200k)


Internal Revenue Bulletin: 2009-48 | Internal Revenue Service

I went through the IRS regulations and the text of the law a few months ago. The law states that the date a car is counted is the date the car was put into service by the end user. I can't find the data now. But I don't believe cars on dealer lots count.

He had no background in the topic, so wanted actual numbers or an official statement of some sort, something beyond of my assurances about 3rd party sales reports and it not being even close.


I couldn't find anything in any of my sales paperwork from the Chevy dealership on it.

P.S. I recently went through all my papers again during filing for the $2500 TX EV rebate, still didn't see anything on it. ¯\_(ツ)_/¯

EDIT: Eventually my accountant just filed it, no idea what put eventually his mind at rest. Maybe he just did some Google searches or got hold of someone in his accountant rolodex that had more specialized knowledge on the matter, or it's possible he even has an IRS contact that got it sorted for him. It didn't occur to me to ask him what it was.

EDIT2: I definitely will check all my Tesla paperwork for it though. It's possible that the Chevy dealership didn't know they were supposed to include that stuff. EVs not being their main line of sales, it is a hole in their process.

I got nothing from Tesla about the rebate. I just filled out the form in my tax software.

After hitting 200K, I would think that manufacturers would have less need to report sales numbers because the incentive becomes time based rather than numbers based. It doesn't matter how many US sales Tesla has this year, all qualify for the full rebate.

 

[mongo]

I went through the IRS regulations and the text of the law a few months ago. The law states that the date a car is counted is the date the car was put into service by the end user. I can't find the data now. But I don't believe cars on dealer lots count.

Sorry, I was a bit vague there. The OEMs have to report cars delivered to dealers as part of the 200k phase out trigger. The amount of credit is based on put in service date. So the OEM phase out may not align with the 200kth retail sale.

.05 Quarterly Reporting of Sales of Qualified Vehicles. A manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) that has received an acknowledgment of its certification from the Service must submit to the Service, in accordance with section 6 of this notice, a report of the number of qualified plug-in electric drive motor vehicles sold by the manufacturer (or, in the case of a foreign vehicle manufacturer, its domestic distributor) to consumers or retail dealers during the calendar quarter.