Point of sale Tax Credit?

[Jayskywalker21]

I'm hearing since it's 2024 the 7500 tax credit that was available in 2023, will now be a point of sale credit going forward for 2024. I know we're on day 2 of the new year but has anybody taken advantage of this yet or has anyone confirmed this yet?

 

[Super_Popular]

Tesla has the right to not do this and I saw a on Youtube vlog that Tesla was not going to be offering this. My guess as sales slump they will but I am waiting to see as well.

 

[JTWIRE]

Tesla has the right to not do this and I saw a on Youtube vlog that Tesla was not going to be offering this. My guess as sales slump they will but I am waiting to see as well.

Waiting for a vin on my Tesla, so your saying no tax credit at point of sale? is that definite?

 

[Super_Popular]

Waiting for a vin on my Tesla, so your saying no tax credit at point of sale? is that definite?

Nobody knows, we are all waiting.

Fingers crossed!

 

[Jayskywalker21]

Waiting for a vin on my Tesla, so your saying no tax credit at point of sale? is that definite?

If you can wait before we get more information I would and just cancel my order but that's just me

 

[NJturtlePower]

Lots of great info and analysis here... bottom line it seems Tesla is not yet qualified to offer the Point-of-Sale credit but should be very soon!

 

[beyondsapiens]

I contacted a Tesla rep today about it and they said Tesla is set up/ready to provide the POS discount, they’re just “waiting for the IRS website to be turned on” so they can apply the credit to the VIN. They said I could put in an order and they’d hold it until they could apply the credit, so you’d probably just need to work it out with a sales rep to do the same.

 

[Xenoilphobe]

I just sent my SA a note and told them that I was choosing to take the 30D credit. I also notified my lender that my downpayment increased to $7500. I take delivery next week..

QUOTE FROM TAX CODE:
(c) The dealer, not later than at the time of sale, must have paid the taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) an amount equal to the § 30D credit otherwise allowable to such taxpayer.
Source: rp-23-33.pdf

 

[MOD3LR]

I just sent my SA a note and told them that I was choosing to take the 30D credit. I also notified my lender that my downpayment increased to $7500. I take delivery next week..

QUOTE FROM TAX CODE:
(c) The dealer, not later than at the time of sale, must have paid the taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) an amount equal to the § 30D credit otherwise allowable to such taxpayer.
Source: rp-23-33.pdf

What was SA’s response?

 

[Xenoilphobe]

They told me that there are issues with the IRS POS website that they are working through it and they are hopeful it will be resolved soon. They offered to delay delivery until it was operational.

 

[Jkimo11]

I'm in the position of not having enough tax to get the $7500 EV Credit in full. (My understanding is that you have to actually have some tax to pay).
I'm wondering if the tax I would have to pay on a ROTH IRA CONVERSION would qualify. I've been to the IRS website on this, but it is not specific about this. Must it be "income tax" or is it "any tax" you'd have to pay?

 

[Tam]

I'm in the position of not having enough tax to get the $7500 EV Credit in full. (My understanding is that you have to actually have some tax to pay).

Disclosure: I am not tax competent but this is what I understood:

That's the old ways of 2023 and prior. If you have a $7,000 tax liability, you got that wiped out down to 0, but you don't get the $500 out of the $7,500 credit refunded.

Starting in 2024, the Treasury says, "The guidance would clarify that eligible consumers may transfer the full value of the new or previously owned vehicle credit regardless of their individual tax liability."

If your liability is 0 or $7,000, you can take the whole $7,500 point-of-sale rebate.

I'm wondering if the tax I would have to pay on a ROTH IRA CONVERSION would qualify.

When you convert your IRA to Roth IRA, you have to pay tax on the conversion.

I've been to the IRS website on this, but it is not specific about this. Must it be "income tax" or is it "any tax" you'd have to pay?

It's the AGI-adjusted income tax that counts for your EV credit eligibility.

If you got a million dollars from a Roth IRA, that portion is not taxed, and the AGI would zero that out.

If you convert the IRA into a Roth IRA, that amount would boost the AGI to a higher income in order to disqualify you from EV credit.

 

[Tezla1]

So, if you make $0 up to $300k (if married), then you can claim the full 7500 tax credit?

Or is there a minimum income amount?

Does $7500 credit apply to all vehicles under $55k MSRP?

 

[Skavatar]

i don't think there is a minimum income.

if the vehicles meet all the irs clean vehicle qualifications, such as weight, battery capacity, where the minerals are from, where the battery components are from, assembled in NA, etc.

point of sale is available now

 

[Tam]

So, if you make $0 up to $300k (if married), then you can claim the full 7500 tax credit?

Or is there a minimum income amount?

Does $7500 credit apply to all vehicles under $55k MSRP?

My understanding is: minimum tax liability is still applicable to get credits if you refuse the pos discount and prefer the route of claiming credits with filing 2024 tax. That means if your tax liability is 0, te IRS won't send you the $7,500 rebate check. You just lost that money by claiming EV credits in your tax filing instead of taking the pos offer.

With pos, You do not need to claim EV credits for 2024 filing. There's no requirement to do that. After getting $7,500 at the pos, you do not have to give back $7,500 if your tax liability is $0. It's income based for the pos, not tax liability based.

 

[Skavatar]

from the IRS faq website, basically even if you don't owe any taxes, you still get the $7500 pos tax credit and they won't make you pay it back.

Q4: What if a buyer has insufficient tax liability to fully use a transferred credit? (added Oct. 6, 2023)​

A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer.

 

[Mike1992]

I ordered my new model y and applied for the incentive as my down payment witch is perfect because now it’s 0 down but after a few hrs I got a pop up on my Tesla app that I can choose from a model y that was ready near me and they seem to be discounted about 5k or so anyways I opted to change to that and now it’s asking for a $2800 down payment. I called Tesla and asked what this was about they said it is the taxes and fees or sales tax that is due up front I explained that wasn’t the case with the one I ordered and they said that it shows up now because there is a vin attached now . If it were sales tax it would be a heck of a lot more than $2800 here in CA. Now I’m on a back and forth saying witch me back to my previous order or let me choose a cheaper alternative from the available inventory witch honestly was about 2k more then what I ordered.
Did anyone go through the incentive with 0 down im curious?

 

[mongo]

I ordered my new model y and applied for the incentive as my down payment witch is perfect because now it’s 0 down but after a few hrs I got a pop up on my Tesla app that I can choose from a model y that was ready near me and they seem to be discounted about 5k or so anyways I opted to change to that and now it’s asking for a $2800 down payment. I called Tesla and asked what this was about they said it is the taxes and fees or sales tax that is due up front I explained that wasn’t the case with the one I ordered and they said that it shows up now because there is a vin attached now . If it were sales tax it would be a heck of a lot more than $2800 here in CA. Now I’m on a back and forth saying witch me back to my previous order or let me choose a cheaper alternative from the available inventory witch honestly was about 2k more then what I ordered.
Did anyone go through the incentive with 0 down im curious?

If the new Y qualifies for the $7,500, it can be applied as the down-payment. Have you filled out the incentive tab for it? You would theoretically also be able to get $2,800 of the credit back at time of purchase if you do need to put down a deposit now.

 

[arvindm]

I'm hearing since it's 2024 the 7500 tax credit that was available in 2023, will now be a point of sale credit going forward for 2024. I know we're on day 2 of the new year but has anybody taken advantage of this yet or has anyone confirmed this yet?

Yes! I bought MYLR on Jan 26, 2024. Got 5100 off price reduction and 7500 off Federal Credit at POS. Of course you have to declare that when you file 2024 Tax with IRS and if your AGI is more than 300k they will want it back! But you are fine if the AGI is less than 300K for married couple filing jointly.

 

[NJturtlePower]