Tax Credit and Model Y delivery

[joeinNFLA]

While this is what I believe - this is what it says:

• If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022, (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022.
• If you purchase and take possession of a qualifying electric vehicle between August 16, 2022 and December 31, 2022, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).

If you purchase after August 16 and the car is made in North America prior rules don't apply - AKA 200K

Nope sorry.

 

[joeinNFLA]

Tesla tax credit starts 2023, not 2022 period.

Yes Jan 1 2023. With AGI requirements and yet to be confirmed battery questions. Also 2023’s that qualify are credits you can use on your 2023 tax return you file in 2024. Jan 1 2024 the credit will be a point of sale credit off the price of the vehicle at time of delivery. This is yet to be determined how it will work since could be a nightmare for dealers including Tesla. Because how will dealer/Tesla be paid the $7500? Sure won’t work if they have to float the $7500 waiting for payment from the Fed’s.

 

[NotNalb]

Watch this, starting at 1:20 about the credit...

But, be careful not to overinterpret what he is saying in the video about the application of the tax credit, all of which is true. The tax credit will reduce the amount of taxes you owe, dollar for dollar, but just to zero, and not less than zero (which would be a "refundable tax credit," this isn't). Anyone whose taxable income results in a federal income tax of $1 or more will be able to benefit from this tax credit. Of course, you will have to have a total federal tax liability for that FY equal to or greater than $7,500 to get the FULL benefit of the credit. Who on this board discussing expensive cars will not have a federal tax liability for FY 2023 of at least $7,500? The tax tables for 2022 show that a total taxable income (AGI minus deductions) of less than $55,000 is all it takes to produce a tax liability of $7,500. You don't have to be so grossly under-withheld by your filing date that you have to write a check for $7,500, this credit would be applicable against your full federal income tax liability for 2023. When the speaker in the video says that you have to be eligible for the credit at the end of the tax year, he means most importantly that you must not have earned too much to have exceeded the income limitations during that tax year.