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Tesla $7500 Tax Credit Coming Back?
- Thread starter nate704
- Start date
Here is an article from today (Aug 8th) saying the Model Y will qualify for the new tax credit, but will it be the full amount?
finance.yahoo.com
How top-selling electric vehicles will be affected by new tax credit
While the proposed expansion of EV tax credits sounds like good news for the automakers, several requirements have now been introduced that have the automakers claiming 70% of EVs and PHEVs (plug-in hybrid EV) will not qualify for the credit, and it could get worse from there.
Reddit has an interesting spreadsheet showing tax credits by make/model with the current law and "guesstimates" for credits with the new law after it is signed.
Reddit EV Tax Credit Spreadsheet
Reddit EV Tax Credit Spreadsheet
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Reddit has an interesting spreadsheet showing tax credits by make/model with the current law and "guesstimates" for credits with the new law after it is signed.
Reddit EV Tax Credit Spreadsheet
Lexus PHEV is built in Japan like the Prime and Tucson and Sorrento PHEV are built in Korea. I think the only PHEV assembled in NA is the Escape PHEV.
The crafters of this bill have set up a series of filters that cleverly eliminates almost all Tesla's, at least for the time being.
- M3 RWD... passes on the price cap, but almost certainly fails on the battery materials and battery assembly. I wasn't sure if the battery is assembled in China or Nevada/Freemont.
- M3LR/Performace..... fails on the price cap. Even if the price drops, it will almost certainly fail the battery materials, but pass on the battery assembly. So maybe half the credit IF the price drops. Otherwise nothing.
- MYLR/Performance.... passes the price cap for SUV (depending on options), but likely to fail on the battery materials, but pass on the battery assembly. So likely half the credit.
But they have really found a way to eliminate partially or fully most of the current EV market.
- M3 RWD... passes on the price cap, but almost certainly fails on the battery materials and battery assembly. I wasn't sure if the battery is assembled in China or Nevada/Freemont.
- M3LR/Performace..... fails on the price cap. Even if the price drops, it will almost certainly fail the battery materials, but pass on the battery assembly. So maybe half the credit IF the price drops. Otherwise nothing.
- MYLR/Performance.... passes the price cap for SUV (depending on options), but likely to fail on the battery materials, but pass on the battery assembly. So likely half the credit.
But they have really found a way to eliminate partially or fully most of the current EV market.
Most major manufactures were already phased out or were about to be (Ford and Toyota) so not qualifying right away under the new one doesn’t change anything. I’m ok with the new requirements except maybe the raw material part because there’s only a handful of places in the world to get the stuff needed to build the batteries currently. What this bill does is give incentives to manufactures who will shift production to the US as well as offer reasonably priced options to consumers. The existing program helped to spur the demand for EVs, now that people are buying them without any incentives, this will help drive the manufacturing here.
The current program was giving people 7500 rebates on Bentley Bentaygas for christs sake.
The current program was giving people 7500 rebates on Bentley Bentaygas for christs sake.
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No electric vehicles on the market today qualify for the new EV tax credit
Automakers are hoping to extend the deadlines.
www.theverge.com
the car itself is made in america so it will at least get the $3750 by default
as of current day, it looks like Tesla WILL quality. all 100% of the battery materials don't have to be made in USA plus there's some time allottage
I think it’s up to $80,000 for truck or SUV so I’d think it’d cover the MY. However it has more to do with where the battery is manufactured and where the minerals for the battery come from. From what I got from it, most Teslas would get approximately 1/2 of the $7500 credit because of this.
Yes! I haven’t read anyone talking about this. CATL (largest vehicle battery manufacturer in the word, also based in China) makes m3 LFP battery, so m3 battery won’t qualify for the battery component portion, though I think it will still qualify for the $3750 assembled in NA requirement.
No, that assembled in N/A applies to batteries in addition to qualifying the car. CATL batteries in the SR Model 3 will not qualify for either half of the credit based on current language. There has been some talk about petitioning the Secretary of Transportation for temporary waivers of some requirements.
There has been so much mis interpretation of this bill. A sure sign it is very poorly written. So to add to the confusion
... this is another thing I heard. That the battery minerals/build provisions kick in in 2024 not 2023. So there may be a window in 2023 for the M3 RWD if this is true. The Treasury Department is supposed to issue a list of eligible cars later this year. I'm thinking it might take them that long to figure out what the bill says. Until this list comes out who really knows which cars are eligible and for what amounts.It's hard to get real information about how this will play out. The 2024 deadline may leave the Model Y eligible for the full $7.500 for the year 2023. The Model 3 SR still has the problem of the batteries manufactured in China. No explanation exists whether the raw material delay will or will not allow a partial credit for the SR.There has been so much mis interpretation of this bill. A sure sign it is very poorly written. So to add to the confusion
Sadly, Pelosi's Taiwan visit caused CATL to delay plans to build a US factory for LFP batteries in the US.
Agreed. I’ve read the bill a half dozen times and the language is ridiculously confusing. My understanding is the ‘24 thing is batteries manufactured in “countries of concern” - read China - but the 40% minerals origin/processing and 50% components/assembly by cost is 2023. I find it hard to believe the CATL LFP will qualify without a waiver, but I’ve heard some suggest the cells are actually packaged in USA, so conceivably it could qualify for that half, and, theoretically, 40% of the minerals could have been mined or processed in FTA countries even though it’s manufactured in China, but seems unlikely given how much lithium comes from china and CATL is a Chinese company subsidized by the Chinese government. Ultimately, it all comes down to how the secretary and IRS interpret the bill and if they give waivers in the short term.There has been so much mis interpretation of this bill. A sure sign it is very poorly written. So to add to the confusion
Hopefully we can be fairly sure that MY will qualify for at least half the credit in ‘23.
I’m more curious about options and destination charge and whether those costs will count toward the $80k. If they do, you could have a white car that qualifies and a red one that doesn’t, for example, which would be dumb! My configuration is barely over $80k with fsd, so I guess I’d have to remove it to qualify.
I’m more curious about options and destination charge and whether those costs will count toward the $80k. If they do, you could have a white car that qualifies and a red one that doesn’t, for example, which would be dumb! My configuration is barely over $80k with fsd, so I guess I’d have to remove it to qualify.
Paid $2k extra for my red MYP, and I am glad I did because I don't need any free s**t just like this tax credit.
To be fair, the MSRP caps were the same in BBB last year when the M3LR was well under $55k.
You can buy FSD later if you can manage the separate financing. Alternatively, you could just subscribe.
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