Optimizing CVRP and Federal Tax Credit and other rebates available in California

[tbwnm]

I intend to purchase a new Model 3 for our daughter and would appreciate guidance on the optimum scenario to take advantage of the above. Given her current income bracket, she would be eligible for the $2,500 CVRP (in addition to $2,000 low income CVRP). However, I would be able to benefit from the $1,875 Federal Tax Credit. Given this scenario, in order for her to claim the CVRP and me to claim the tax credit, can I purchase the vehicle on her behalf and just list my name and her name on the purchase agreement and registration? It is my understanding that under this scenario we both would need to be present to sign for the car as the Tesla Delivery Center which is not a problem (this is what the Tesla Sales rep told me but he is very new and doesn't seem sure). She can also take advantage of the $1K SCE available in her are so the vehicle would be registered under her address. Through Plug in American, the South Coast AQMD also offers up to $9,500 with the "Replace Your Ride" program. Has anyone applied for this (our daughter drives a 2005 Prius and I'm not sure it this vehicle would qualify)? I will not be driving the vehicle so the auto insurance would be under her current auto policy so I assume this does not effect my auto insurance. There are some many rebates and incentives out there, any guidance on how to get the most out the available benefits would be greatly appreciated. Thank you!

 

[Mr X]

Don't expect the $2,500 CA rebate anytime soon. Funds are all out for now


CPO Model 3's will be the best value. Keep an eye out

 

[MXWing]

Don't expect the $2,500 CA rebate anytime soon. Funds are all out for now


CPO Model 3's will be the best value. Keep an eye out

The $2,500 CA rebate runs "out of funds" all the time.

There hasn't been one time where it doesn't replenish. You just apply at that time.

 

[jjrandorin]

The $2,500 CA rebate runs "out of funds" all the time.

There hasn't been one time where it doesn't replenish. You just apply at that time.

This is what the california CRVP website says right now:

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Waitlist in effect for Standard Rebate Applications received on or after June 5, 2019

As of June 5, 2019, funding is only available for qualified lower-income applicants, as described here. All other applications for vehicles already purchased/leased will be processed and placed on a rebate waitlist. As of 06/27/2019, the Legislature approved $238 million in Cap-and-Trade auction proceeds for CVRP. However, we anticipate that it could take several months to receive the funding. Qualified applicants on the rebate waitlist will receive payment when the project receives more funding from the State of California. Additional updates will be provided here as they become known. Learn more.
===========================

So, it could be "several months" which is a bit different than it has been in the past, as additional money was normally funded fairly quickly.
There is a waitlist, so one would apply, and "hope to eventually get it". If I were buying right now, I would not "plan / budget" on receiving that money. I would "hope" to get it.

 

[OCR1]

A friend of mine applied for the $2,500 CA Rebate and qualified for their low income category. He was approved and just received his check even though he filed his application after the state ran out of money.

If both of you are on title no problem taking the federal tax credit while your daughter applies for the CA rebate. For the utility bill the account needs to be in one of your names to qualify for the $1,000 rebate.

 

[chewyc]

As of June 5, 2019, funding is only available for qualified lower-income applicants

So low income still get paid out, but non low income applicants are on a waiting list.

 

[Lunares]

How old is your daughter and does she live with you? There are lots of extra rules for the low income applicant pool.

You are definitely skirting the rules by having her claim the low income applicant but you are paying for it.

I see no way to do so if you are also on the title (which is necessary for the federal rebate). You are both considered the owners then.

For replace your ride, the car must be gasoline powered and also must fail certain emission standards (NOT the smog test). I find it highly unlikely a Prius would.

Also again, that program has income limits ($50k). If you are on the title you cant claim it.

 

[tbwnm]

Don't expect the $2,500 CA rebate anytime soon. Funds are all out for now


CPO Model 3's will be the best value. Keep an eye out

Have been keeping an eye out for CPO's but seems like slim pickings and current used inventory isn't discounted enough to make it worth while (aside from the one off discounted models posted mid August that sold out in 20 minutes). Also checking EV-CPO Hunter but for some reason whenever I add "California" under "Advanced Options" no cars show up as available so I cant tell where these vehicles are located (only 15 M3's show up s being available used total). This isn't right as several show up when I search used inventory on the Tesla site under my zip code.

 

[cpa]

I cannot say with any certainty how the Service would view joint title with the parent claiming the federal tax credit only and not any state or local rebates, particularly if income restrictions come into play with the state and local rebates.

I can say with certainty that the rules for claiming mortgage interest and property tax deductions on Schedule A are pretty restrictive. In essence, the person who gets to claim those deductions must be on the title, must pay the debt service and taxes, must bear any risk of loss or gain, and must have some equity in the residence. Usually, but not always, the person claiming these deductions must reside in the dwelling. These rules are in effect to prevent a taxpayer in a high tax bracket from deducting these expenses even though the son or daughter (in a lower tax bracket) lives in the house and pays a lot of the bills. A common situation is when a lender insists on having mom and dad on title to get the mortgage loan through even though it is the child who lives in the house and pays the taxes, insurance, and mortgage. There are other situations too.

It seems to me that you want to split the baby. Not sure that I would go there.

Tracing rules might also come into play.

 

[EV-CPO]

Also checking EV-CPO Hunter but for some reason whenever I add "California" under "Advanced Options" no cars show up as available so I cant tell where these vehicles are located (only 15 M3's show up s being available used total). This isn't right as several show up when I search used inventory on the Tesla site under my zip code.

About a month ago, Tesla stripped the location field out of the used inventory, so it's no longer possible to tell where any car is actually located. In its place, Tesla now just displays the following for any used car listed on their website: "Transport to any Tesla location available for $2,000 (continental US only)".

BTW, New/Inventory cars do have a location associated with them.

This isn't right as several show up when I search used inventory on the Tesla site under my zip code.

Yes, Tesla will show you cars, but there's no way to tell if they are local to you or not. What zip code are you using? I just tried a dozen random LA zips and no cars popped up. But if I use 90210, several do appear.

 

[tbwnm]

About a month ago, Tesla stripped the location field out of the used inventory, so it's no longer possible to tell where any car is actually located. In its place, Tesla now just displays the following for any used car listed on their website: "Transport to any Tesla location available for $2,000 (continental US only)".

BTW, New/Inventory cars do have a location associated with them.



Yes, Tesla will show you cars, but there's no way to tell if they are local to you or not. What zip code are you using? I just tried a dozen random LA zips and no cars popped up. But if I use 90210, several do appear.

I'm using 91001 on the Tesla Used inventory site. Currently 8 vehicles show up (supposedly within 200 miles of this zip)

 

[tbwnm]

I cannot say with any certainty how the Service would view joint title with the parent claiming the federal tax credit only and not any state or local rebates, particularly if income restrictions come into play with the state and local rebates.

I can say with certainty that the rules for claiming mortgage interest and property tax deductions on Schedule A are pretty restrictive. In essence, the person who gets to claim those deductions must be on the title, must pay the debt service and taxes, must bear any risk of loss or gain, and must have some equity in the residence. Usually, but not always, the person claiming these deductions must reside in the dwelling. These rules are in effect to prevent a taxpayer in a high tax bracket from deducting these expenses even though the son or daughter (in a lower tax bracket) lives in the house and pays a lot of the bills. A common situation is when a lender insists on having mom and dad on title to get the mortgage loan through even though it is the child who lives in the house and pays the taxes, insurance, and mortgage. There are other situations too.

It seems to me that you want to split the baby. Not sure that I would go there.

Tracing rules might also come into play.

What your saying makes sense. I don't think I will go there either. Many thanks!

 

[EV-CPO]

I'm using 91001 on the Tesla Used inventory site. Currently 8 vehicles show up (supposedly within 200 miles of this zip)

I just tried that zip code and it's returning 127 used cars for me. And looking at the JSON returned, none of them have a location attribute assigned, not even the NearByDeliveryRegion value is set (it's usually set to a few state abbreviations of nearby states). Also, for used cars, the "Search within x miles" field disappears. So whatever they might be showing you aren't necessarily cars near you.

And as such, EV-CPO doesn't have any location information available for the used cars, unfortunately.

 

[davewill]

You're trying to have the cake of the low income CVRP and eat the federal tax credit at the same time. There's no way to make that work because if your name is on the car so you can get the tax credit, then your income will prevent getting the low income CVRP rebate. Since the low income benefit is more than the tax credit, just leave the car in your daughter's name.

P.S. There's another really good reason to keep your name off your adult daughter's car. If she gets into an accident, just the fact your name is on the title could be enough to expose you to liability. Happened to a business aquaintance of mine. The parents had sold/given a car to their adult son, but never changed the title. The son hit and killed someone. The family sued for wrongful death, and got the insurance money AND sued and won another $1M from the son and the parents. Had the parents not been on the title, then the liability would have been limited to the son.

 

[tbwnm]

Very good advice and a tragic cautionary tale. Thanks, I’m not going to take any chances on this!

 

[tbwnm]

I just tried that zip code and it's returning 127 used cars for me. And looking at the JSON returned, none of them have a location attribute assigned, not even the NearByDeliveryRegion value is set (it's usually set to a few state abbreviations of nearby states). Also, for used cars, the "Search within x miles" field disappears. So whatever they might be showing you aren't necessarily cars near you.

And as such, EV-CPO doesn't have any location information available for the used cars, unfortunately.

Ok got it. Thanks. I was just searching Model 3’s which us why 8 only showed up on my search.

 

[Lunares]

To come back to what you should do:

buy it, register it in your name or your daughters. Take only federal tax and CVRP (not the low income). That's the easiest, trouble free way.

 

[EV-CPO]

Ok got it. Thanks. I was just searching Model 3’s which us why 8 only showed up on my search.

Ok, just to confirm, I looked at all 8 of those used M3 cars, and none had a location or near location attribute.