Tax Credit and Model Y delivery

[johnnycnote]

According to The Electric Viking, most EVs will not qualify for the rebate under current vehicle pricing...

 

[bro1999]

So what's the play for people that ordered very recently (say within the past couple weeks) and have current EDDs in the Jan 2023 and after timeframe that want to ensure delivery in 2023? Request a hold right now until 1 Jan 2023 (or later)? I read somewhere in this thread that Tesla won't place a hold on your order past your current EDD (say your EDD is Jan-Apr 2023, does that mean NLT Jan or Apr?).

 

[HellsKitchen]

So what's the play for people that ordered very recently (say within the past couple weeks) and have current EDDs in the Jan 2023 and after timeframe that want to ensure delivery in 2023? Request a hold right now until 1 Jan 2023 (or later)? I read somewhere in this thread that Tesla won't place a hold on your order past your current EDD (say your EDD is Jan-Apr 2023, does that mean NLT Jan or Apr?).

The agent who told me this wasn’t very specific. And from what I can remember, my range was much more narrow. Perhaps a month.

 

[Mayo]

In almost all cases it is the AGI on your prior year return that determines eligibility for income-based benefits. From the IRS: "Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account. Your AGI will never be more than your Gross Total Income on you return and in some cases may be lower."

A friend of mine is thinking about placing an order for the MYLR now or wait until January.

He is trying to figure out if he qualifies for this $7k tax credit because he has two jobs where he pulls in at least $255k with both jobs combined. Can someone help answer that question because I don't want to give him the wrong answer. Figure there are some smart people here that fully understand the bill they are about to pass.

Tell your friend to stop overthinking this issue. If he wants a Tesla and is truly in the 255k income level just order your Tesla for a
$250.00 deposit. Go thru the sales process and if Tesla refuses to deduct the $7.500 rebate at the time of sale he can simply walk away from the purchase. I seriously doubt a $250 loss of his deposit will kill the guy.

 

[Mayo]

I am thinking that maybe some people based on their tax liability position, may not be able to take advantage of any tax credits .

Vegas this is a point of sale rebate. This is different than the last Federal credit. This one is a rebate not a credit . Everyone who purchases a qualified EV will receive this rebate at the sales table on delivery day.

 

[Mayo]

My dilemma is I would like to purchase a Tesla because I believe they manufacture the best electric vehicle (especially their software). I am not “gaming” the system – I am just following their ordering procedure. I look at the EDD on the screen and it says Jan-Apr 2023 for a possible delivery date. I realize that the date may be earlier or later depending on Tesla’s ability to produce the desired model. That happens to work for me. Do I wait until after January to order? Maybe. But I choose to order now and see what happens. If necessary, I will use the 30 days they allow. Personally, I would like to have a M3 but the wife feels differently – and has a number of reasonable points to justify her position (game over). But with the rebate, we can afford the MY. Without it, we will probably purchase the M3 – which by the way still cost $4,000 less than our configured MY with the credit.

I do appreciate everyone’s thoughts and opinions!

The model 3 Long Range at its current price does not qualify for this new rebate law. Elon needs to lower the price by almost $3,000 for you to be able to take advantage of the Model 3 LR. Good Luck

 

[Yelobird]

Well I just placed my order tonight and it says EDD of January-April. Assuming it qualifies for the credit, I won’t be accepting delivery before then, and I have it in writing from sales rep that I won’t have to.

The only problem is total price is ~$82k. If that disqualifies it, I’ll have to remove fsd and then buy later. Hopefully govt won’t care about options but nobody knows at this point. If fsd costs more by then, I guess I’d have to eat the difference but it definitely won’t be $7500 more.

Advice, cancel FSD to likely Delay order and reduce base. You can add FSD at original price down to the last day and they won’t increase price.

 

[Happy Hippo]

Tell your friend to stop overthinking this issue. If he wants a Tesla and is truly in the 255k income level just order your Tesla for a
$250.00 deposit. Go thru the sales process and if Tesla refuses to deduct the $7.500 rebate at the time of sale he can simply walk away from the purchase. I seriously doubt a $250 loss of his deposit will kill the guy.

I agree plus with an income of $255k if he is single, he disqualifies anyway. He can afford it and not to worry about the $7500. Come on people!

 

[house9]

This one is a rebate not a credit. Everyone who purchases a qualified EV will receive this rebate at the sales table on delivery day.

While that may be true, if your income (adjusted) is over the limit then I assume you will need to pay the Fed back the $7,500 at tax time?

 

[Mayo]

Just picked up my refreshed Model X. New pricing showed they listed the base price as $69,000 plus additional $20,000 for long range option. Believe this would qualify. Need for the bill to be passed and signed into law before anyone will know for sure which cars and which incomes will be included.

price cap for all EV SUV is $80,000 the Model X will not qualify just based on its MSRP

 

[Mayo]

While that may be true, if your income (adjusted) is over the limit then I assume you will need to pay the Fed back the $7,500 at tax time?

I agree I am not giving TAX advise. People use common sense here. We all know what an AGI {Adjusted Gross Income} is, if you dont then I suggest you speak to your tax accountant. This would apply to anything you deduct in your yearly tax preparations do not claim deductions you dont qualify for period. If Tesla eroneously applies the rebate to your contract expect to reimburse the federal government at tax time.

 

[bayareaever]

Advice, cancel FSD to likely Delay order and reduce base. You can add FSD at original price down to the last day and they won’t increase price.

My EDD window just narrowed from mid March to mid May so not an issue at this point.

Removing fsd will reduce price but adding it before delivery will potentially still create the same issue with exceeding $80k cap. I’m more concerned that adding fsd after delivery will cost more than $12k. Does anyone know if fsd pricing is structured that way?

 

[debaser19]

is it going to be for only vehicles delivered in 2023? I've read the final assembly bit takes effect on date of signing, so I'm in a weird spot with a VW ID.4 I have on order being built in Germany and the Model Y I ordered, both scheduled for delivery between October and November. sounds like I might be getting screwed on both regarding the tax rebates

 

[Happy Hippo]

My EDD window just narrowed from mid March to mid May so not an issue at this point.

Removing fsd will reduce price but adding it before delivery will potentially still create the same issue with exceeding $80k cap. I’m more concerned that adding fsd after delivery will cost more than $12k. Does anyone know if fsd pricing is structured that way?

You can always add FSD after delivery. you do not have to add it at time of delivery. Tesla gives you the option.

 

[bayareaever]

You can always add FSD after delivery. you do not have to add it at time of delivery. Tesla gives you the option.

Yes but current price is $12k. If I add after delivery, I assume I’ll be paying whatever is current then (probably higher)

 

[VegasMYP]

Vegas this is a point of sale rebate. This is different than the last Federal credit. This one is a rebate not a credit . Everyone who purchases a qualified EV will receive this rebate at the sales table on delivery day.

Thanks for the clarification

 

[HellsKitchen]

You can always add FSD after delivery. you do not have to add it at time of delivery. Tesla gives you the option.

I wonder if adding FSD after will legally void the tax credit. I bet it's an unintended loophole that might change.

 

[Bluelocust]

The model 3 Long Range at its current price does not qualify for this new rebate law. Elon needs to lower the price by almost $3,000 for you to be able to take advantage of the Model 3 LR. Good Luck

I know. Espeically with the current demand. With the last quarter sales and net profit, inflation does not seem to be hitting net revenues like you would anticipate. Even Musk knows he is approaching the “affordability boundary.” I would imagine it is a balance. If the M3LR could be priced at $54,990 – a price $3,000 dollars above where it was priced in March – it would qualify for the rebate and continue to drive strong demand for an affordable electric vehicle.

 

[bro1999]

I wonder if adding FSD after will legally void the tax credit. I bet it's an unintended loophole that might change.

I wonder if Tesla will go more extreme and enable battery unlocks post-delivery to allow more vehicles to qualify for the tax credit (similar to what they did in Canada with the 93-mile Model 3)

 

[johnnycnote]

Can't wait to see the creative solutions Tesla (and every other manufacturer) comes up with to fall into whatever final parameters end up in the bill