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Retroactive & at-sale full $7500 EV tax credit (Electric Credit Access Ready at Sale [CARS] Act)

Mardak

Member
Oct 13, 2018
677
1,347
USA
Plus, there is no guarantee that any such ceiling-raising won't come with an income limit or (MSRP cap).
Right, even the approach of "American Jobs Plan" / "Clean Cars for America" requiring a gas trade-in to get the credit could change until it actually passes. And if "social infrastructure" is added to a combined bill, that could also delay things quite a bit.
 

MOD220

Member
Apr 25, 2019
142
33
Columbus, OH
I assume if anything does pass all three chambers, for simplicity, it will be based off calendar year (i.e. any car purchased in 2021 will qualify), not a specific purchase date. I just purchased a M3P last week, take delivery in June, so I certainly hope that's the case! Would kill me if the credit applied a few months after my purchase!
 
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T_Gravity

Member
Apr 5, 2021
16
15
Houston, Texas
I assume if anything does pass all three chambers, for simplicity, it will be based off calendar year (i.e. any car purchased in 2021 will qualify), not a specific purchase date. I just purchased a M3P last week, take delivery in June, so I certainly hope that's the case! Would kill me if the credit applied a few months after my purchase!
There are couple of scenarios:

1. If they want to remove the 200000 cap and implement 600000 cap according to one of the bills, it wont be retroactive, the credit starts from the day the bill is signed and all the sales until that point wont be counted to the 600000 cap.

2. It they want to implement start date and expiration date and don't cap number of vehicles sold for the credit then it is likely that it will be beginning of 2021.

honestly though, I don't think, they want to do any retro credits as they are trying to promote sales and they is no gain in giving credit to people who already purchased.

If you want to absolutely get a credit, wait until the end of the year as there WILL be some form of credit for sure. If you absolutely need to have a car, just take the hit or you can buy a cheap car for may be 3 to four grand, use it until the end of the year and sell it after you get the Tesla, you can still get much better return credit as they are talking up to 10k credit.
 
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MOD220

Member
Apr 25, 2019
142
33
Columbus, OH
There are couple of scenarios:

1. If they want to remove the 200000 cap and implement 600000 cap according to one of the bills, it wont be retroactive, the credit starts from the day the bill is signed and all the sales until that point wont be counted to the 600000 cap.

2. It they want to implement start date and expiration date and don't cap number of vehicles sold for the credit then it is likely that it will be beginning of 2021.

honestly though, I don't think, they want to do any retro credits as they are trying to promote sales and they is no gain in giving credit to people who already purchased.

If you want to absolutely get a credit, wait until the end of the year as there WILL be some form of credit for sure. If you absolutely need to have a car, just take the hit or you can buy a cheap car for may be 3 to four grand, use it until the end of the year and sell it after you get the Tesla, you can still get much better return credit as they are talking up to 10k credit.

I don't see the Replublicans increasing the credit, hard enough to pass, I think at best they "reopen" the previous credit. I also don't know how they tie this to income, these are high end cars, not for the low income earners, I guess we just have to wait....my current car has 270k miles on it, $4,800 trade in value, just want to trade in before something bad happens, but missing out on a $7500-$10k credit would eat me alive mentally LOL
 

T_Gravity

Member
Apr 5, 2021
16
15
Houston, Texas
I don't see the Replublicans increasing the credit, hard enough to pass, I think at best they "reopen" the previous credit. I also don't know how they tie this to income, these are high end cars, not for the low income earners, I guess we just have to wait....my current car has 270k miles on it, $4,800 trade in value, just want to trade in before something bad happens, but missing out on a $7500-$10k credit would eat me alive mentally LOL


Wow..$4800 for a 270k mileage car? What car is that if you don't mind me asking..
 
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dss33

Member
Apr 14, 2016
362
303
Seattle
There are couple of scenarios:

1. If they want to remove the 200000 cap and implement 600000 cap according to one of the bills, it wont be retroactive, the credit starts from the day the bill is signed and all the sales until that point wont be counted to the 600000 cap.

2. It they want to implement start date and expiration date and don't cap number of vehicles sold for the credit then it is likely that it will be beginning of 2021.

honestly though, I don't think, they want to do any retro credits as they are trying to promote sales and they is no gain in giving credit to people who already purchased.

If you want to absolutely get a credit, wait until the end of the year as there WILL be some form of credit for sure. If you absolutely need to have a car, just take the hit or you can buy a cheap car for may be 3 to four grand, use it until the end of the year and sell it after you get the Tesla, you can still get much better return credit as they are talking up to 10k credit.

Re: #2 - that's probably the most salient point. And that goes hand-in-hand with the point of sale rebate/discount, which wouldn't be retroactive (whereas tax credits typically apply to a tax year and would more likely be retroactive). Hopefully we'll know more very soon now that the parliamentarian has ruled that they can use budget reconciliation for this bill too.
 
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suprax

Member
Mar 8, 2021
181
157
Rochester, NY
Anyone hear anything?
Nothing solid yet. I’m keeping an eye on the news regarding the infrastructure plan. This week Biden meets with leaders from both parties to work on compromise. But it’s not sounding too likely that there will be any compromise that’s going to be of benefit to electric vehicle incentives. My fear is that the EV part of the plan gets axed and introduced later this year, like Winter, as a smaller separate bill. Which for me, blows my order timeline.
 
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graphic

Member
May 12, 2016
122
59
Houston, Texas
With a $500 increase on any Tesla every other Friday, Tesla price will be $5,000 more than now before getting the a $7500-$10k (?) credit...
I'm thinking about locking in my order, but if the bill passes will I get the $7500-$10k (?) credit? If it is a Tax credit... I heard it may be a $7500-$10k credit at the time of sale.
 

suprax

Member
Mar 8, 2021
181
157
Rochester, NY
I'm thinking about locking in my order, but if the bill passes will I get the $7500-$10k (?) credit? If it is a Tax credit... I heard it may be a $7500-$10k credit at the time of sale.
So far there have only been rumors of a direct point of sale rebate, taken right off the top of the purchase at the time of delivery. Not a tax credit like it was previously structured.
 
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Mrbrock

Member
Mar 26, 2020
788
472
Napa, CA
I'm thinking about locking in my order, but if the bill passes will I get the $7500-$10k (?) credit? If it is a Tax credit... I heard it may be a $7500-$10k credit at the time of sale.
If you lock in your order for delivery this quarter then you would need the credit to be retroactive to beginning of 2021 and for your tax liability, not point of sale. It is very unlikely they will offer tax credits to beginning of 2021. More likely to be July 1 or Jan 1, 2022. So if you need a car right now you probably won’t get money back.

As for the $500 being $5000, right now they have offset the CA $1500 point of sale rebate that started at the beginning of the year replacing various utility rebates. Until something federal is announced I would hope they pause more increases.
 

OCJeff

Member
Feb 18, 2021
289
221
SoCal (RSM)
No point of sale, still tax offset. They will never be able to pass a $10k handout for all buyers. Tying it to taxes owed will offset some to a lot of the burden on the government.
Yes, tax offset but with this latest language as a refundable tax credit. That is a big deal for many. (As if this will ever pass as is 🤣🤣🤣🤣🤣🤣)
 

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