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Tax credit on leases

Discussion in 'Model S: Ordering, Production, Delivery' started by markm, Sep 9, 2014.

  1. markm

    markm New Member

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    Sep 9, 2014
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    Location:
    connecticut
    Form what I understand, federal tax incentives go to the owner of the qualified car. In a leasing situation, the company who owns the lease, own the car, thus gets the tax credit. This should be passed on to the consumer leasing the car. When I have leased a diesel and a plug in hybrid in the past, the dealers took off the tax credit from the purchase price for this very reason. I just looked at leasing a Mercedes electric and sure enough they too were going to take 7500 off the sticker. I have tried to ask the local people at Tesla why they do not offer this but they just say they don't. I tried to get someone at corporate to call back on this issue but has been futile. Someone seems to be making money off this credit.

    Any thoughts???
     
  2. Lloyd

    Lloyd Active Member

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    San Luis Obispo, CA
    The leasing company only benefits from the tax credit if the company has a tax liability. Many leasing companies have enough depreciation and recoveries to offset tax liability on a given year. In this case they would not benefit and would be losing money if passed on to the customer in the form of a credit on the lease.
     
  3. bigdomer

    bigdomer Member

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    Feb 17, 2014
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    Franklin, TN
    mark - Tesla financing made it very clear to me that they are NOT passing the credit on to the lessee via reduction in cap cost. Thus, I decided to buy.
     
  4. markm

    markm New Member

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    Sep 9, 2014
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    connecticut
    I finally talked to corporate Tesla and got an answer that makes sense. While Tesla stock has been great, they still are profitable. Without being profitable, they cannot take advantage of the 7500 tax break themselves. Thus, they cannot pass it on; there is nothing to pass on. I wish that the local Tesla people would just explain it. I not sure they even get it.
     

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