Tax credit 2023 [The tax credit discussion thread]

[SteveV62]

You file a form at the time you file your 2023 Fed tax return. Tesla is also sending documentation to the IRS to corroborate your qualifying purchase.

 

[MikenDallas]

How long do you have to keep the car to claim the tax credit?

 

[staclem]

You file a form at the time you file your 2023 Fed tax return. Tesla is also sending documentation to the IRS to corroborate your qualifying purchase.

Thanks SteveV62

 

[bsnelson]

Potential MYP leasee here (Texas). I've read this thread (I promise), but don't see a clear answer. What happens to the tax credit in the case of a lease? I would qualify if purchasing (i.e. under the income limit), but since I'd be leasing...?

Brad

 

[sshults]

Hi!

I'm keeping my eye out on used 2021 Model Ys. What would y'all say would be too many miles when looking to spend about $40,000?

Also, is the 2021 Model Y eligible for the federal used EV tax credit? And does anyone know if the $25,000 limit for the purchase price is before or after trade in and down payment?

 

[SteveV62]

bsnelson, you do not get the tax credit, but you should be able to negotiate the $7500 of the lease off the top, since the leasing company is enjoying the tax credit.

 

[joeinNFLA]

Hi!

I'm keeping my eye out on used 2021 Model Ys. What would y'all say would be too many miles when looking to spend about $40,000?

Also, is the 2021 Model Y eligible for the federal used EV tax credit? And does anyone know if the $25,000 limit for the purchase price is before or after trade in and down payment?

Before. It’s the actual sales price. Google it and the web pages will give you all the facts. Never get tax advice here.

 

[bsnelson]

Tesla claims they do not get the credit. Don't laugh, but are there humans at Tesla that I can talk to about this? Anyone know any contact information?

Brad

 

[fiehlsport]

Before. It’s the actual sales price. Google it and the web pages will give you all the facts. Never get tax advice here.

Yeah, everything is clearly laid out on the main website for this.

 

[Eric9610]

Just had a chat with Tesla and it looks like they are now the only car manufacturer who won't apply the $7,500 credit to leases. BMW, MB, Porsch and all other manufacturers are using it as the provision for commercial car applies to leasing company (not a loophole), so they pass it on. Looks like I will be going with another brand once my Y lease is over.

 

[SilentWarp]

Just had a chat with Tesla and it looks like they are now the only car manufacturer who won't apply the $7,500 credit to leases. BMW, MB, Porsch and all other manufacturers are using it as the provision for commercial car applies to leasing company (not a loophole), so they pass it on. Looks like I will be going with another brand once my Y lease is over.

If you look at the numbers for Tesla leasing, it really never made sense, anyways. For a couple of hundred bucks more a month, you get to keep the car, sell it when you want, get the rebate, etc etc. Don't quit the brand over that.

 

[SteveV62]

I should have clarified my earlier response: The other EV manufacturers, Genesis, Hyundai, Kia, etc., are offering to reduce the lease capital by $7500 in an effort to compete with Tesla's $7500 tax credit with purchase as they are ineligible for that tax credit due to the IRA provisions regarding domestic production.

 

[jjrandorin]

Tesla claims they do not get the credit. Don't laugh, but are there humans at Tesla that I can talk to about this? Anyone know any contact information?

Brad

Sure, they get it, but they do not have to pass anything on to anyone. The vehicle owner gets the tax credit, full stop. They can choose to give it to someone else but they dont have to. There is no one to talk to, to "get it applied on a lease" if Tesla chooses not to apply it.

 

[Eric9610]

If you look at the numbers for Tesla leasing, it really never made sense, anyways. For a couple of hundred bucks more a month, you get to keep the car, sell it when you want, get the rebate, etc etc. Don't quit the brand over that.

If you don’t income qualify you can’t get the credit on purchase… but if you leases you do as it’s classified as commercial since the leasing company holds the title. Also I have a business scenario that leasing is better. I would never purchase / loan an EV outright, just my preference for many reasons.

 

[bsnelson]

Sure, they get it, but they do not have to pass anything on to anyone. The vehicle owner gets the tax credit, full stop. They can choose to give it to someone else but they dont have to. There is no one to talk to, to "get it applied on a lease" if Tesla chooses not to apply it.

I did speak to a real human at Tesla Finance, and they confirmed that no, they do not pass along any of the tax credit. So, end of my lease journey, $250 lighter in the wallet. Lesson learned.

Brad

 

[jjrandorin]

I did speak to a real human at Tesla Finance, and they confirmed that no, they do not pass along any of the tax credit. So, end of my lease journey, $250 lighter in the wallet. Lesson learned.

Brad

I didnt mean there wasnt anyone to talk to, to get the answer to the question. I ment there was no one to talk to, to "get the credit applied to the lease". These cars are poor lease targets unless one is writing it off on a business or something. I say this as someone who used to lease BMWs (2 at a time) for almost 20 years, and used to be one of the main people on what used to be a very large BMW forum advising people on lease deals.

Meaning, I am not lease averse, I just think the lease on these is not great, and since you cant buy it, nor can you sell it to a dealer, they make poor lease targets.

 

[dougn0782]

Straight forward question that I am not finding the answer to.

If I buy a Model 3 This year and claim the $7,500 IRA credit, can I claim another $7,500 IRA credit in 3-4 years when I can get the Cybertruck?

 

[AJ..]

Just had a chat with Tesla and it looks like they are now the only car manufacturer who won't apply the $7,500 credit to leases. BMW, MB, Porsch and all other manufacturers are using it as the provision for commercial car applies to leasing company (not a loophole), so they pass it on. Looks like I will be going with another brand once my Y lease is over.

If I may ask - how many years lease was it? How much (initial payment + total per month payment) did you make in dollar terms?

With trade in (and new car sales tax reduction, plus the 7.5k rebate on new car) - wouldn’t lease be slightly inferior option? Trying to get insights into the leasing mindset. Thanks

 

[SteveV62]

doug, it depends on what the laws are in 3-4 years. Under existing law, you could buy 2 Teslas in 2023 and get 2 tax credits, assuming you otherwise qualify.

 

[Eric9610]

If I may ask - how many years lease was it? How much (initial payment + total per month payment) did you make in dollar terms?

With trade in (and new car sales tax reduction, plus the 7.5k rebate on new car) - wouldn’t lease be slightly inferior option? Trying to get insights into the leasing mindset. Thanks

Confused by this question as you can calculate this on tesla site...

Tesla leases $1,445 due at signing, payment $725 a month x36 with 12k miles per year. $52k car Loan with same details $849
With the tax credit applied ,$0 due at signing, payment $539 a month x36 with 12k miles per year. (Significant cost delta)

MB EQS 450 4 matic $110k car, $1,445 due at signing payment $1k a month x36 with 12k miles per year.
BMW iX50 $98k car, $1,445 due at signing payment $919k a month x36 with 12k miles per year.

For $200 more a month the MB and BMW are far better options...

People who say no benefit to leasing don't really run the numbers... clearly its better to lease a Y...