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A tax CREDIT is not the same as getting cash back or a discount.Why would that matter?
Money is money. Cash is fungible.
The IRS money isn't magically different from the "other" money I use for other things.
So for example let's say I have $100,000 in a bank account.
I buy a car for $50,000 cash, and then get a $7500 IRS check that goes into the account. The account now has $57500 in it, and net cost of car was $42500.
Or I buy a car for $42500 and get no check. The account now has $57500 in it, and net cost of car was $42500.
Same same.
In this case, if I bought the same car today, my NET cost is over $5000 higher than it was in 2018.
Tesla is not a car company.Whether or not Tesla "needs" the tax credits is debatable as their profits still largely come from non-car sales related activities. Also, there have been a number of quarters where Tesla produced more cars than they sold so to say that demand exceeds supply is not necessarily accurate. Although the current situation is a bit unique in the new and used car market, there have been plenty of times when several months old Tesla new inventory cars were not uncommon.
It would also be nice to see Tesla not be so cheap and cost cutting when it comes to customer service, quality, etc. but that may continue with or without the benefit of tax credits. Tesla using some of the potential tax credit monies for those things would be great for its current and future customers.
A tax CREDIT is not the same as getting cash back or a discount.
Whether or not Tesla "needs" the tax credits is debatable as their profits still largely come from non-car sales related activities. Also, there have been a number of quarters where Tesla produced more cars than they sold so to say that demand exceeds supply is not necessarily accurate. Although the current situation is a bit unique in the new and used car market, there have been plenty of times when several months old Tesla new inventory cars were not uncommon.
It would also be nice to see Tesla not be so cheap and cost cutting when it comes to customer service, quality, etc. but that may continue with or without the benefit of tax credits. Tesla using some of the potential tax credit monies for those things would be great for its current and future customers.
A tax credit only applies if you owe taxes at the end of the year.If you qualify for the full value (as the vast majority of 2018 buyers did per previous discussion), it's exactly the same as that other than if you pay sales tax on the amount of it or not.
Which I already accounted for in the math showing the 2018 remains over $2000 cheaper than the same config in 2021.
A tax credit only applies if you owe taxes at the end of the year.
Please stop. That's not how tax credits work. Tax credit only cut down on the amount of taxes you OWE. If you don't owe taxes or get a refund at the end of the year, you don't get a the $7500 tax credit.That's not quite correct- it offsets your tax liability.
It's entirely possible you can take the full credit even if you were going to get a refund without it and instead get a $7500 larger refund- depending how you set up your withholdings throughout the year.
In any event I literally addressed this in the post you are replying to, when I wrote "If you qualify for the full value"
I guess you missed where we covered that you only needed an income of $66,000 a year to be eligible for the full $7500 credit, and that something near 90% of everyone who applied for that credit got the full value?
Please stop. That's not how tax credits work. Tax credit only cut down on the amount of taxes you OWE. If you don't owe taxes or get a refund at the end of the year, you don't get a the $7500 tax credit.
"You must have a federal tax liability in the year you purchase an electric car or plug-in hybrid to claim the tax credit.
The amount you make has nothing to do with if you owe taxes at the end of the year or not. I make more than $66,000 and I don't owe the government any money at the end of the year.
As long as you have at least $7500 liability you get the full $7500. Which an income of $66,000 would insure.
For a single person. For a married couple filing jointly it would be need to be around $91k.
As soon as you put the "other than" on it, it is no longer exactly the same....it's exactly the same as that other than...
Count me in the minority. Active military so my taxable income is low, wife's retired military with combat related injuries from Iraq so her income is tax free. If the tax credit comes back it's worth $0 to me. If the prices were jacked up to compensate for it I would have been looking real hard at other cars.Well, yes- but as the earlier link mentions, nearly 80% of those taking the credit had incomes over $100,000 so apparently not a ton of low-income married couples bought a Tesla in 2018
As soon as you put the "other than" on it, it is no longer exactly the same.
Jeffrey Dahmer was a pretty nice guy other than...
"Tesla loses huge customer for emissions credits in Europe and the US. Stellantis paid Tesla $2.4 billion for credits between 2019-2021."What are you taking about. Tesla only sold $350M total to Stellantis and it only appears to affect European credit purchases. So it’s not anywhere near a billion. Probably not even $200M
"Tesla loses huge customer for emissions credits in Europe and the US. Stellantis paid Tesla $2.4 billion for credits between 2019-2021."
"This would eliminate the need for at least some of the payments to Tesla, whose proceeds from the lucrative sale of regulatory credits hit a record $518 million in the first quarter."
"Regulatory credit revenue probably will rise to $2 billion from about $1.4 billion in 2020, analyst Dan Levy predicted in a note previewing Tesla’s quarterly earnings Wednesday. He wrote that his estimate for 2021 is higher than consensus of $1.3 billion."
Tesla loses huge customer for emissions credits in Europe and the US
Stellantis paid Tesla $2.4 billion for credits between 2019-2021.arstechnica.com
Money now is worth more than money later to me (unless theres a delta in total monies), so the value the tax credit minimally as I rarely owe. Id rather take a 5k point of sale rebate than 7.5k credits even if I was approved to recieve it all.