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Sales tax deduction + federal tax credit + state rebate in California.
- Thread starter m3guy
- Start date
Uncle Paul
Well-Known Member
Everybody has their own circumstances to consider, but in Ca you will get a $7500 Federal tax credit and a California $2,500 refund check in the mail. You can also deduct from your taxes the registration fees which are similar to sales taxes.
You will also be eligible for a $500 credit on your electricity SCE bill for installing a charging port in your garage.
There are some income caps etc that may effect you.
In addition, if you are buying a Model X and have a profitable business you can often write off your entire purchase price the first year.
You will also be eligible for a $500 credit on your electricity SCE bill for installing a charging port in your garage.
There are some income caps etc that may effect you.
In addition, if you are buying a Model X and have a profitable business you can often write off your entire purchase price the first year.
TT97
Active Member
Federal is through the IRS and a credit when filing taxes.
State rebate can be filed when you purchase the car, not filed with taxes. Clean Vehicle Rebate Project
In California, there is no Sales Tax Deduction for EV. (Registration fees are $20 less than ICE, but immaterial.)
State rebate can be filed when you purchase the car, not filed with taxes. Clean Vehicle Rebate Project
In California, there is no Sales Tax Deduction for EV. (Registration fees are $20 less than ICE, but immaterial.)
notAnExpert
Member
Federal
If you take delivery of Tesla by the end of 2018, you are entitled to a federal tax credit of $7,500. In your tax returns for the year, you take a credit of $7,500 from whatever tax amount you owe the IRS for 2018. Regular tax software like TurboTax will ask you the right questions to apply this credit in your tax returns.
CA State
If you make less money than the limits specified at Clean Vehicle Rebate Project, you can apply for and get a rebate check of $2,500 from the state. You have to apply for it. See that site for more details.
Not sure what you mean by "sales tax deduction". There is no such deduction I'm aware of.
engle
Member
My friend and neighbor replaced his 2016 Model X with a Model S last weekend. His wife already has a Model 3 RWD. He said his application for the $2,500 CA state EV credit was rejected because you can only receive that twice.
Since this is hearsay from my friend, someone please confirm?
Since this is hearsay from my friend, someone please confirm?
It's on CVRP site:
Rebate Limit
Except for rental, public and car share fleets, no single entity is eligible to receive more than two CVRP rebates either via direct purchase and/or lease as of January 1, 2015. All rebates issued prior to this date do not count toward the two rebate limit.
Individuals or businesses that have met the rebate limit with non-fuel cell vehicles may apply for one additional rebate for a fuel cell vehicle. This exception does not apply to rebate preapproval applications.
Traditional rental car fleets and car share fleets are capped at 20 rebates per calendar year. Public fleets are limited to 30 rebates per calendar year.
For SCE customers, there is also a $450 Clean Fuel Rebate:
Clean Fuel Rewards Program | SCE Clean Fuel Rewards Program
If you are referring to the sales tax deduction you can take on your federal taxes, that one is an either/or scenario. You can get a deduction for your state income taxes paid OR your sales taxes paid but not both. In Texas I used to deduct the sales taxes, but here in CA my state income taxes far exceed what I pay in sales tax, so I do the state income tax.
While, you can technically still write off your registration fees, I will bet it becomes a moot point for many Tesla buyers in CA due to the new tax law cap of $10,000 on property and state income taxes paid.
notAnExpert
Member
Yes, that is true. Only two rebates per "individual or entity" for cars bought / leased since 2016.
Besides, if your friend didn't keep his 2016 Model X for 30 months since purchase, he would owe pro-rated amount of the original rebate back to the state. But they might let him off the hook since he is replacing it with another EV for which he is not getting a rebate. The CVRP staff is pretty helpful. He can call or email to get clarification.
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