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Tesla $7500 Tax Credit Coming Back?

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#2
New Vehicle Credit

  1. Manufacturer caps eliminated. (Page 370, line 15)
  2. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
  3. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).
  4. Vehicle must be assembled in North America to qualify for new credit. (Page 366, line 15).
  5. North American assembly requirement applies to vehicles sold after the date of adoption of the bill. (Page 386, line 3)
  6. $7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
  7. $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
  8. The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
  9. The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
  10. The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
  11. The government has until the end of the year to develop guidance on the battery requirements. (Page 374)
  12. Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).
  13. One credit per vehicle. (Page 375, line 12)
  14. Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. Definition of MAGI (page 375, line 22)
  15. MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
  16. Dealer can apply credit at time of sale. Dealer must disclose to buyer the MSRP of the vehicle, the applicable tax credit amount and the amount of any other available incentive applicable to the purchase. (Page 378, line 6)
  17. Credit terminates December 31, 2032.
Used Vehicle Credit

  1. Tax credit of 30% of value of used EV with $4,000 cap (Page 387, line 23).
  2. Used vehicle must be at least two model years old at time of sale. (Page 389, line 7).
  3. The original use of the vehicle must have occurred with an individual other than the one claiming the used tax credit. (Page 389, line 10).
  4. Used vehicle must be purchased from a dealer. (Page 390, line 3).
  5. Used vehicle price must be $25k or less. (Page 390, line 5).
  6. Used vehicle qualifies for tax credit only once in its lifetime. (Page 390, line 7)
  7. Purchaser must be an individual (no businesses) to qualify for used credit. (Page 390, line 14).
  8. Purchaser may only claim one used vehicle credit per three years. (Page 390, line 20).
  9. Modified gross income cap of $75k for individuals, $112,500 for head of household and $150k for joint returns. (Page 388).
  10. Credit may be applied at time of sale by dealer. (Page 391, line 15).
  11. Credit terminates on December 31, 2032. (Page 391, line 12).

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#3
Seminole said:
New Vehicle Credit

  1. Manufacturer caps eliminated. (Page 370, line 15)
  2. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
  3. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20)
Click to expand...
Page 386, line 3. Exception to point 2 above:

(2) FINAL ASSEMBLY.—The amendments made by subsection (b) shall apply to vehicles sold after the date of enactment of this Act.

Subsection (b) is page 366, line 15:

"the final assembly of which occurs within North America"

So...it is not clear to me whether qualifying Tesla clean cars "sold" after enactment in 2022 would qualify if delivered in 2022. Not sure how to define "sold" (versus placed into service), and not sure if this exception does mean Teslas (and other assembled in North America) will get the rebate upon enactment of this Act.

Inquiring minds want to know. Besides I assume this draft is subject to change as it works it way through the Congress.
 
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#6
I would like to place an order now but only for a delivery in Jan~ to make sure it's a 2023 model as well. What is the general policy of ordering now, and deferring delivery for ~3 months? MYP says it would be ready in Aug-Oct of this year.
 
#9
EVEnergy said:
It's limited to cars under $55k and there are income limits as well. Only the bog standard M3 SR+ would qualify.
Click to expand...
Not true...


• Vehicle retail price must not exceed these amounts to qualify for EV credit:
⁃Vans: $80k
⁃SUV: $80K
⁃Pickup Truck: $80k
⁃Other (Sedans): $55k
⁃Used vehicles: $25k

Only Model 3 SR+ (RWD), Model Y Long Range & Performance will qualify for $7.5k credit. Not just M3 SR.
 
#11
Hookemhorns said:
Page 386, line 3. Exception to point 2 above:

(2) FINAL ASSEMBLY.—The amendments made by subsection (b) shall apply to vehicles sold after the date of enactment of this Act.

Subsection (b) is page 366, line 15:

"the final assembly of which occurs within North America"

So...it is not clear to me whether qualifying Tesla clean cars "sold" after enactment in 2022 would qualify if delivered in 2022. Not sure how to define "sold" (versus placed into service), and not sure if this exception does mean Teslas (and other assembled in North America) will get the rebate upon enactment of this Act.

Inquiring minds want to know. Besides I assume this draft is subject to change as it works it way through the Congress.
Click to expand...

It’s the sale date on your VPA, aka the day you pick up the car and complete the transaction. Once this passes it replaces the existing program from that day forward. Any car sold after that date meeting the requirements gets the credit.

The transition period is for companies like Rivian or Lucid which qualify under the current plan because there is no price cap but would be excluded under the new one. If the buyer has an order agreement dated before the bill is signed they can still claim the credit as long as delivery occurs in 2023
 
#13
Seminole said:
New Vehicle Credit

15. MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
Click to expand...
So, no M3LR (57,990) or M3P (62,990)... and what's the official definition of an SUV? Is the Y "officially" an SUV? (I've heard is referred to as a "Crossover")

...Tesla mostly (or totally if Y is not "officially" an SUV) left out again...
 
#14
Evly said:
So, no M3LR (57,990) or M3P (62,990)... and what's the official definition of an SUV? Is the Y "officially" an SUV? (I've heard is referred to as a "Crossover")

...Tesla mostly (or totally if Y is not "officially" an SUV) left out again...
Click to expand...
It’s considered an SUV. Only the M3 SR+ and MY LR and Performance will qualify. Assuming Tesla doesn’t raise prices further to keep more of the credit for themselves the MY LR is a no brainer over the M3 LR as they essentially become the same price and you get significantly more space and usability.

And it’s not that Tesla is left out again, if Tesla lowers prices then more will qualify. Think about brands like Rivian, Lucid, Fisker, and more that will no longer qualify at all and never came close to selling the 200k units.

Also brands like Porsche and Audi and VW, Polestar, even Toyota with the Rav-4 Prime who did qualify and no longer will as their cars are not built in North America.
 
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#15
Seminole said:
It’s considered an SUV. Only the M3 SR+ and MY LR and Performance will qualify. Assuming Tesla doesn’t raise prices further to keep more of the credit for themselves the MY LR is a no brainer over the M3 LR as they essentially become the same price and you get significantly more space and usability.

And it’s not that Tesla is left out again, if Tesla lowers prices then more will qualify. Think about brands like Rivian, Lucid, Fisker, and more that will no longer qualify at all and never came close to selling the 200k units.

Also brands like Porsche and Audi and VW, Polestar, even Toyota with the Rav-4 Prime who did qualify and no longer will as their cars are not built in North America.
Click to expand...
This bill actually sounds like it makes a lot of sense (mostly)... good incentives to push the right things... not (overly) "subsidizing the rich" or pandering to unions...

So, "North America" means Canada and Mexico too? Guessing that's the concession to Ford's Mach-E being assembled in Mexico...

VW gonna be very happy when Chattanooga starts rolling... Sorry Herbert Diess won't get to celebrate that.
 
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