Tax credit 2023 [The tax credit discussion thread]

[AndrewZ]

I believe the Model Y will be in the SUV category and have a higher price ceiling

I think they'll end up limiting the SUV/Truck/Van category to vehicles that are larger and have larger battery packs than the Model Y and other similar small SUVs, this is part of what the IRS is asking for feedback on.

It could go the way you're suggesting but makes little sense to me, $80k is an obscene amount for an SUV the size of a Model Y and I doubt the spirit of the legislation is using taxpayer dollars to fund small SUVs with big luxury price tags.

Now using taxpayer dollars to fund vehicles with much larger battery packs and that will cost more by default because of the sheer size, that makes a bit more sense and $80k would actually do something to limit prices on a vehicle the size of something like a Rivian R1T/S.

do you think IRS really understands HW/OTA nuances?

I most definitely believe the IRS has people or will receive feedback from people who know this stuff inside and out as part of their Request for Comments, but this is pretty simple compared to the intricacies of tax law.

 

[pepperoni]

Some things are worth more than money. Like happy times in your new Tesla.

Ask anyone who kept and accepted their delivery in 2021 if it was worth it not dragging it out into this year and beyond for a tax credit that didn’t come.

Obviously delaying a 2021 order until 2022 wasn’t worth much, because BBB didn’t pass. Still, I put my order on hold last year through Jan 1 and have no regrets. I would have preferred to have an extra $7500 in my pocket, but in the end I did get the new Ryzen processor. It makes complete sense to me that folks are trying to delay again this year, and even cancelling/reordering.

 

[ElectricIAC]

I would gladly delay the "happy times" in my Tesla by a month or 2 if it meant an extra 3,750 or 7,500 in my pocket down the road.
As for comparing people delaying last year, it's apples to oranges as last year a new EV tax credit bill was never actually passed, while this year one WAS passed (though tax credit eligibility is still up in the air). But the odds of qualifying for a tax credit are exponentially higher this year versus last year.

The tax credit still is up the air regarding eligibility and with the available inventory out there I’d personally rather just buy a used unit right than roll the dice on the whims of this most venerable administration.

 

[bro1999]

Obviously delaying a 2021 order until 2022 wasn’t worth much, because BBB didn’t pass. Still, I put my order on hold last year through Jan 1 and have no regrets. I would have preferred to have an extra $7500 in my pocket, but in the end I did get the new Ryzen processor. It makes complete sense to me that folks are trying to delay again this year, and even cancelling/reordering.

I put in an order for a LR3 last year, then delayed to 1 Jan '22. New EV tax credit never came to be so I decided not to buy it, but since the price of the LR3 went up compared to my locked-in price, I ended up selling the reservation to another person.

I now have a LRY on order on hold till 1 Jan '23, and if it does qualify for a tax credit I'll probably sell my SR+ 3 for it. After owning a SR+ 3 for over a year, it's been fine, but would definitely take advantage of the extra space offered by the Y (in addition to extra range).

 

[randmness]

I would gladly delay the "happy times" in my Tesla by a month or 2 if it meant an extra 3,750 or 7,500 in my pocket down the road.

Delaying two months to save $3750, probably wont save most folks any money if they're looking to finance said vehicle. Delaying two months to potentially save $7500 could work though, with financing, if you aren't trading in a vehicle. Your trade-in will likely lose thousands in today's market the longer you wait.

 

[TesMarley]

I put in an order for a LR3 last year, then delayed to 1 Jan '22. New EV tax credit never came to be so I decided not to buy it, but since the price of the LR3 went up compared to my locked-in price, I ended up selling the reservation to another person.

I now have a LRY on order on hold till 1 Jan '23, and if it does qualify for a tax credit I'll probably sell my SR+ 3 for it. After owning a SR+ 3 for over a year, it's been fine, but would definitely take advantage of the extra space offered by the Y (in addition to extra range).

How did you put your LRY order on hold till 1 Jan ‘23. Can you share your approach it will be helpful.

 

[kithytom]

How did you put your LRY order on hold till 1 Jan ‘23. Can you share your approach it will be helpful.

Everyone can until 10/14/2022, when Tesla changed the hold unmatch policy for all orders, regardless what your agreement says

Tesla updates vehicle unmatching policy to prevent long order holds

Tesla has updated one of its policies that could see your order being cancelled if you don't follow the rules carefully.

driveteslacanada.ca

 

[bro1999]

How did you put your LRY order on hold till 1 Jan ‘23. Can you share your approach it will be helpful.

Asked [email protected] back in August when that was still possible. I'm guessing these days 7-14 days is all you'll be able to get.

 

[Dale J]

Delaying two months to save $3750, probably wont save most folks any money if they're looking to finance said vehicle. Delaying two months to potentially save $7500 could work though, with financing, if you aren't trading in a vehicle. Your trade-in will likely lose thousands in today's market the longer you wait.

Correct, plus my vehicle is $3000 more today than when I ordered, combined with the order fee, I would lose $3250 to MAYBE gain $3750. Not worth it.

 

[_lok]

Looks like the EDD is moving up. I ordered MYLR the initial delivery date is in Dec 1-26. Today it changed to Nov 15-26.

 

[mashimaro1628]

Same here, EDD moved up too, and since some folks here said tesla changed the hold policy, should I still take delivery or cancel my order? I'm kinda clueless to how the tax credits works, as far as I know, I never claim even close to that much on my taxes, so does the EV credits even matter to me or not?

 

[smallindiana]

Same here, EDD moved up too, and since some folks here said tesla changed the hold policy, should I still take delivery or cancel my order? I'm kinda clueless to how the tax credits works, as far as I know, I never claim even close to that much on my taxes, so does the EV credits even matter to me or not?

Was told by my SA that it’s 2 days after the vehicle arrives “on-site” to take delivery.

You must have at least 7500 in tax liability to even get the credit. If you don’t claim close to that then it isn’t worth it. Cancelling also means you’ll have to get in on the new price structure - which is higher. If you are financing - no one knows what feds will do to raise rates. Lots of uncertaintiy if you cancel I think…

 

[mashimaro1628]

Was told by my SA that it’s 2 days after the vehicle arrives “on-site” to take delivery.

You must have at least 7500 in tax liability to even get the credit. If you don’t claim close to that then it isn’t worth it. Cancelling also means you’ll have to get in on the new price structure - which is higher. If you are financing - no one knows what feds will do to raise rates. Lots of uncertaintiy if you cancel I think…

Yea, that's my dilemma too, so much uncertainty. I personally think the 2024 credit on the purchase is the best, but I don't want to wait another year for the car (I ordered in Feb 22, that would be like two years total if I wait til 2024), so I might just suck it up and forget the tax credits since I don't even close to claiming that much anyways. I ordered before the multiple price hikes within this year, so I'm still paying $7k less than if I cancel and reorder right now.

 

[dwest218]

I’m curious everyone’s inputs for when the earliest you can order a Model Y this year but feel certain you won’t receive it until next year? I’m thinking that as soon as Tesla sees that their 2022 orders are completely filled and they are looking for new orders that they will raise prices. They must know that there are customers lined up at the starting line of a marathon waiting to place their orders once 2023 nears to receive the $7500 credit. People have been holding out since the Inflation Reduction Act was passed back back in August! If they raise their prices just several thousand dollars in the next few weeks, that will create a lot of false starts at the line from customers fearing that the prices will only go up again by the time 2023 turns over and this will at least get Tesla some orders on the books. For Tesla, it doesn’t make sense to sell a $65,000 Model Y that buyers think will only cost $57,500 when they already know people are willing to pay the $65,000. So Tesla will raise the price. I think almost every EV manufacturer will do this which then actually erodes the incentive for buyers to switch to EV. Hope I’m wrong but would like to hear other peoples thoughts?

 

[pusheen]

2nd week of December. Delivery will take at least a week and you could delay another.

 

[acpd]

December 30th is safe. Anything before and they will hand you someone's cancellation.

Global slowdown. see attached. Mass layoffs in tech. Those are the biggest Tesla buyers.

Tesla is lowering prices outside of US already. MY is almost $20k cheaper elsewhere already. Don't see how they would increase prices. Also good % of Tesla buyers don't qualify for Tax credit. What do u think will happen to them?

 

[itsjohnnayy]

I think it says up to 7500. 3750 for car being built in the US and another 3750 for the materials/minerals from the US and not imported. I don't think it's worth it to wait for a "up to 7500" so I'm going to accept my delivery when it comes. Like some people said in this thread it's not worth it but to each their own!

 

[dwest218]

2nd week of December. Delivery will take at least a week and you could delay another.

That makes a lot of sense.

 

[dwest218]

December 30th is safe. Anything before and they will hand you someone's cancellation.

Global slowdown. see attached. Mass layoffs in tech. Those are the biggest Tesla buyers.

Tesla is lowering prices outside of US already. MY is almost $20k cheaper elsewhere already. Don't see how they would increase prices. Also good % of Tesla buyers don't qualify for Tax credit. What do u think will happen to them?

Good points and will have an impact for sure. But they still have a solid 4 months of people that didn’t order the last half the year and are waiting. Plus those incentivized by the $7500.
It was a year wait before and imagine that same demand will rebound to similar levels.

 

[arbitrage000]

I think it says up to 7500. 3750 for car being built in the US and another 3750 for the materials/minerals from the US and not imported. I don't think it's worth it to wait for a "up to 7500" so I'm going to accept my delivery when it comes. Like some people said in this thread it's not worth it but to each their own!

The car being built in N. America (not just US) is just an overall qualifying requirement to even try and qualify for the two halves of the $7500 credit. Being built in N. America does not in itself qualify the car for $3750. If not built in NA then you don't have a chance to qualify. Built in NA is just a gatekeeper to get through the door to try and qualify.

The two halves are:
1) A certain minimum percentage (which will increase each year) of critical minerals must be extracted or processed in the US or a free trade partner country, or recycled in North America.
2) The second requirement is that a certain minimum percentage (which will increase each year) of battery components must be manufactured or assembled in North America.

Then you have to meet the income requirements. Then you have to actually owe that amount on Federal tax return. So say the car qualified for $7500. If you only owe $4000 on your taxes you will only get $4000 not the full $7500. So you need to owe $7500 or more to even get the full credit (assuming the car even qualifies).