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Potential tax credit impact on prices

There is no tax credit. There is a proposed tax credit. Which is not going to be $7K at the end of the day.


Agreed, until it's passed we won't know what it really is, however I'm holding out on purchasing until it paasess and at that point there is little reason to go for a used model when you can get one with the latest updates for the same price or less.

I suspect others who are ready to buy but aren't forced yet to will be in a similar position.
 

glide

Well-Known Member
Jun 6, 2018
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Agreed, until it's passed we won't know what it really is, however I'm holding out on purchasing until it paasess and at that point there is little reason to go for a used model when you can get one with the latest updates for the same price or less.

I suspect others who are ready to buy but aren't forced yet to will be in a similar position.
Unless you make less than $40K per year, there is no sense in holding out. That part of the bill is *not* going to go up.
 
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Zorg

Active Member
Oct 24, 2017
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Fremont, ca
There is no tax credit. There is a proposed tax credit. Which is not going to be $7K at the end of the day.

Which part of potential was not clear to you? Obviously, it also could be none. However, my money is that some tax credit will happen. What the final number ends up being is anyone's guess.

I think that it will impact resale values, especially on recent models and is going to freeze the market until this gets worked out.
 

glide

Well-Known Member
Jun 6, 2018
5,524
7,806
USA
Which part of potential was not clear to you? Obviously, it also could be none. However, my money is that some tax credit will happen. What the final number ends up being is anyone's guess.

I think that it will impact resale values, especially on recent models and is going to freeze the market until this gets worked out.
No it won’t. Anyone making over $40K a year will not care. And that is probably 95%+ of Tesla owners.
 
No it won’t. Anyone making over $40K a year will not care. And that is probably 95%+ of Tesla owners.
I agree this shouldn't effect the market at the moment since it hasn't even left committee....but the way I read it, the 7k tax credit on new cars would have no income limits (same as it originally was, just $500 less) and the income limits are for used EV's purchased from dealers on the first resale. It would make no sense to have a 7k nonrefundable tax credit & an income limit of 40k since people with 40k AGI have no where near 7k in tax liability....
 

jeremymc7

Active Member
Feb 3, 2013
2,367
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U.S.
There have been numerous proposed new credits (or refunds) since Tesla fell off the Fed one back a year + back. They have come and gone with nothing taking hold.

If you're happy driving what you have, or are work from home like many and rarely driving sure hold out.

Of course there's always the risk that Musk raises the prices too. There was often a tenuous connection between the Fed credit current payout and Musk pricing the cars.
 
Remember the Dems haven’t hold the Congress and the WH for a very long time so obviously the previous bills would not pass. It’s different this time. They know that they may have 2 years to do this.

I wonder if we can buy a new one now and still claim the tax full credit next year (if the bill passes). If Elon anticipates the bill is imminent, he’ll pretty sure raise the price to get a piece of it.
 

Uncle Paul

Well-Known Member
Nov 1, 2013
6,299
7,645
Canyon Lake,CA
Until the tax credit bill passes, the pricing of used S/X should remain pretty stable, considering the recent $10,000 price increase for the refreshed version.

Possibility is that if the tax credit passes, Tesla may raise their new prices again.

For models 3/Y most likely the passing of the tax credit will reduce used resale value even more, unless Tesla raised the prices of those as well.

Crystal ball is cloudy as exactly if and for how much and for what incomes the tax credit will cover.

Probability it will impact 3/y buyers more, as they tend to be the value shoppers.
 
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Remember the Dems haven’t hold the Congress and the WH for a very long time so obviously the previous bills would not pass. It’s different this time. They know that they may have 2 years to do this.
It could still be blocked by the filibuster in the senate

I wonder if we can buy a new one now and still claim the tax full credit next year (if the bill passes). If Elon anticipates the bill is imminent, he’ll pretty sure raise the price to get a piece of it.
The current text of the bill says it only applies to vehicles sold after enactment
 
Unless you make less than $40K per year, there is no sense in holding out. That part of the bill is *not* going to go up.

The proposed $40k income limit is for Used EV. It's a new credit proposed for buying used cars. They won't set a limit that low for the $7000 proposed credit for new EV because if you make less than $40K, you don't owe $7000 in federal tax. If they do set a limit, it will probably be closer to $60K or $70K.
 
It could still be blocked by the filibuster in the senate


The current text of the bill says it only applies to vehicles sold after enactment

I believe they can pass more than one reconciliation per year. First one would be the stimulus. Second might be infrastructure and reconciliation will only require simple majority.
 
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