Tax Credit and Model Y delivery

[arbitrage000]

I added white interior to my existing LR EDD Sep-Oct order. Let's see if this works.

What is your original order specifications?
The best way to delay would be to strip off all options for now. Add them back in January.

 

[Nimilol]

What is your original order specifications?
The best way to delay would be to strip off all options for now. Add them back in January.

It was LR white/Black with induction.

 

[Xpert]

Confirmed no tax credit before 2023. Wonder if tesla will do anything for these customer deliveries before then.

 

[Mayo]

How does sales tax work here? Do you pay sales tax on the price before the discount. As a result your benefit May be less than you think.

I looked at my last MVPA documents and found that California applied the state sales tax only after Price Adjustments, Referral Credits and Trade-in Credits had been deducted. So based on my Document they should will calculate your state liability at that point.

 

[XerxesS]

So reading this very helpful thread, it seems there may not be a great answer, but would love any thoughts!

I have a 7-seat MYLR (with white int/blue ext options) that I ordered last fall. Delivery date in the next few weeks, but I'm out of the country on military orders. Not sure when they'll reset my date to, but I'm more than happy to delay until January to get the credit. Any ideas / thoughts on next steps? Should I just push and hope for the best? Not worth losing the savings (my current order would be about $7,000 more at this point), but obviously getting the credit would be great.

Thanks all!

 

[rlzalusky]

I looked at my last MVPA documents and found that California applied the state sales tax only after Price Adjustments, Referral Credits and Trade-in Credits had been deducted. So based on my Document they should will calculate your state liability at that point.

Except in the first year (2023) you don't get the credit until you do your taxes in early 2024. So it seems to me like you pay full price when you get the card and therefore I would expect you pay sales tax on that full price. Maybe in subsequent years I could see it at point of sale.

 

[RoBoRaT]

So reading this very helpful thread, it seems there may not be a great answer, but would love any thoughts!

I have a 7-seat MYLR (with white int/blue ext options) that I ordered last fall. Delivery date in the next few weeks, but I'm out of the country on military orders. Not sure when they'll reset my date to, but I'm more than happy to delay until January to get the credit. Any ideas / thoughts on next steps? Should I just push and hope for the best? Not worth losing the savings (my current order would be about $7,000 more at this point), but obviously getting the credit would be great.

Thanks all!

Tesla will assign you a VIN (car) when your turn comes, seems to be eminent since your order is almost 1 year old. They don't know/care about our military orders overseas - but maybe be able to make an exception in your case.

I suggest contacting Tesla and explain your predicamentnt. Or else you maybe losing on the pre-hike price and/or the tax credit.

If not, I'll be happy to hold your MYLR7 until you return .

v/r,
RBRT

 

[daswartz]

I bought my Model Y in November 2021 for $59k. I have gotten offers of $65 - $66k to sell it. If I can sell that for $66k, and order new one delivered in 2023 for slightly below that (approx. $70k less $7,500), is there any reason not to consider this?

 

[rlzalusky]

I bought my Model Y in November 2021 for $59k. I have gotten offers of $65 - $66k to sell it. If I can sell that for $66k, and order new one delivered in 2023 for slightly below that (approx. $70k less $7,500), is there any reason not to consider this?

Well it quite possible used resale numbers might drop once the $7500 credits kick in. Also do you want to wait possibly to late 2023 to get the new one.

 

[ColoradoGuy]

There might be some accidental ways for your order to be delayed for some time, but there could be significant risks to these. Google "Don't Screw Up Your Tesla Delivery Date Like I did!" for a video, watch the first part, then go to about the 3-minute mark. I am not advocating that anyone make these mistakes, as they could screw up your order...

 

[Tadgh]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

 

[rlzalusky]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

I wished! What it says is if the car was ordered before Aug 16 and received after Aug 16 the rules before the Inflation Reduction Act still Apply with the additional restriction of US manufacturing requirement.

The 200K requirement Is one of those previous rules. Cars manufactured abroad are essentially screwed.

 

[rlzalusky]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

It does seem to read that way. With delivery times getting much better it’s a possible scenario.

 

[acpd]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

No. Tesla already had 200k cars sold while back so does not qualify.

 

[joeinNFLA]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

NOT correct.

 

[golfwolf]

Is it accurate the those taking delivery in 2023 would not get the credit applied at point of sale (credit when you do your 2023 taxes in 2024)?

If that is the case and you're above the income requirement doesn't make a difference anyway and if for some reason it initially slips through the cracks you'll likely get a letter saying you now owe $$?

 

[rlzalusky]

No. Tesla already had 200k cars sold while back so does not qualify.

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

 

[Happy Hippo]

I’m reading this guidance from Federal Tax Credits for Electric and Plug-in Hybrid Cars as though a model y order placed after August 16 and delivered before December 31, 2022 would qualify for the $7,500 tax credit (no manufacturing cap). Anyone else read it this way?:

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).

Tesla tax credit starts 2023, not 2022 period.

 

[Tadgh]

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

That is how I read it as well

 

[voxel]

Tesla tax credit starts 2023, not 2022 period.

This.

All new rules start 1/1/2023 except the North American Assembly rule which takes effect ASAP on Aug 16th.

Existing rules and caps apply until 2023.