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.
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Retroactive & at-sale full $7500 EV tax credit (Electric Credit Access Ready at Sale [CARS] Act)
- Thread starter Mardak
- Start date
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.
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
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.
Physicslawyer
Member
suprax
Member
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.
Watts_Up
Well-Known Member
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...
suprax
Member
Yeah. Definitely a good idea to order as early as you can to lock in pricing and guard against the price increases.
el-guapin
Trust no One
graphic
Member
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
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.
Mrbrock
Active Member
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.
Mrbrock
Active Member
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.
OCJeff
Active Member
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
)The new "The Bipartisan Infrastructure Framework" that was announced today has this in the fact sheet:
"Electrify thousands of school and transit buses across the country to reduce harmful emissions and drive domestic manufacturing of zero emission vehicles and components."
What that actually means - who knows!
but at least something will be done..
"Electrify thousands of school and transit buses across the country to reduce harmful emissions and drive domestic manufacturing of zero emission vehicles and components."
What that actually means - who knows!
but at least something will be done..I read that as right now electric bus business is a small market and by making a push to have all school buses and transit buses be electric that will drive the growth of local (domestic) manufacturing of them and supporting components (batteries, chargers, etc)The new "The Bipartisan Infrastructure Framework" that was announced today has this in the fact sheet:
"Electrify thousands of school and transit buses across the country to reduce harmful emissions and drive domestic manufacturing of zero emission vehicles and components."
What that actually means - who knows!
Mrbrock
Active Member
It might be refunded over a few years depending on your tax liability.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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