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Tesla EV Tax Credits coming back?

CPisHere

Member
Jan 20, 2021
12
9
Louisiana
From what I know, these types of tax incentives are typically applicable to an entire tax year, as that’s much simpler than a specific date it’s passed. So if it passes in next 3 months(ish), it would most likely apply to 2021 taxes but if it passes at the end of the year it would probably only start in 2022.

I would bet it passes and relatively soon, applying to all of 2021 purchases.
 
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Johnny Vector

Member
Jun 21, 2020
93
124
Maryland
From what I know, these types of tax incentives are typically applicable to an entire tax year, as that’s much simpler than a specific date it’s passed. So if it passes in next 3 months(ish), it would most likely apply to 2021 taxes but if it passes at the end of the year it would probably only start in 2022.

I would bet it passes and relatively soon, applying to all of 2021 purchases.

Hope so! If it doesn't kick in until 2022, Austin will be online and Tesla will burn through those 400,000 US sales before the end of the year. (I assume it only counts US sales, but I'm not sure.)
 

imola.zhp

Member
Jul 13, 2020
408
226
Memphis
From what I know, these types of tax incentives are typically applicable to an entire tax year, as that’s much simpler than a specific date it’s passed. So if it passes in next 3 months(ish), it would most likely apply to 2021 taxes but if it passes at the end of the year it would probably only start in 2022.

I would bet it passes and relatively soon, applying to all of 2021 purchases.

https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

In the document it states no retroactive credits. Any vehicles sold between 200k and the date of passage are excluded, page 42 lines 9-22. Date of passage would be the date the act is passed, excluding any purchases on days prior to passage of the act.

That doesn't mean it won't be modified before its passed, but in its current form, no retroactive credits.
 

imola.zhp

Member
Jul 13, 2020
408
226
Memphis
Hope so! If it doesn't kick in until 2022, Austin will be online and Tesla will burn through those 400,000 US sales before the end of the year. (I assume it only counts US sales, but I'm not sure.)

Its a US tax credit, it is only available for cars registered in the US. The purchaser of the car applies for the credit, not the manufacturer.
 

CPisHere

Member
Jan 20, 2021
12
9
Louisiana
https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

In the document it states no retroactive credits. Any vehicles sold between 200k and the date of passage are excluded, page 42 lines 9-22. Date of passage would be the date the act is passed, excluding any purchases on days prior to passage of the act.

That doesn't mean it won't be modified before its passed, but in its current form, no retroactive credits.
I agree that’s how it seems to be worded, but again just from what I have seen these types of programs are usually applied to a tax year, which means “no retroactive credits” would be as of 01/01/2021 (if it passes soonish).
 

Mardak

Member
Oct 13, 2018
660
1,307
USA
In the document it states no retroactive credits. Any vehicles sold between 200k and the date of passage are excluded, page 42 lines 9-22. Date of passage would be the date the act is passed, excluding any purchases on days prior to passage of the act.
It seems like part of the reason for no retroactive / full 2021 year is to specially avoid per-manufacturer counting of EV sales that already phased out before date of enactment. People can write to their representative (especially those in the Sponsor's (Rep Thompson in CA Napa area) or Cosponsors' districts) to suggest a manufacturer-independent phase out either by total EV sales or timed schedule, and this should avoid inflated EV prices by forcing manufacturers to compete with each other as well as skipping special per-manufacturer counting issues.
 

loanchau2k

Member
Nov 25, 2020
129
61
Fremont, CA
Although Tax incentive is nice, but I bet Tesla will do something take to make more money if it does not feel the pressure from competitions. It might bump MY LR to 53K. I mean, Tesla is not stupid, when MY is selling like a hot cake at 50K without $7K, I don't believe bit Telsa would keep the same price if the customers will have "$7K discount from Gov"
 

thx1139

Member
Aug 1, 2014
852
1,823
Lemont, IL
Although Tax incentive is nice, but I bet Tesla will do something take to make more money if it does not feel the pressure from competitions. It might bump MY LR to 53K. I mean, Tesla is not stupid, when MY is selling like a hot cake at 50K without $7K, I don't believe bit Telsa would keep the same price if the customers will have "$7K discount from Gov"
Tesla wont raise the price, they may not lower the price as soon, but raising would be suicidal.
 

Mardak

Member
Oct 13, 2018
660
1,307
USA
I agree that’s how it seems to be worded, but again just from what I have seen these types of programs are usually applied to a tax year
Do you know if the "In general" heading is like the preamble? "IN GENERAL -- In the case of any new qualified plug-in electric drive motor vehicle sold after the date of enactment of the GREEN Act of 2021…"
 

acarney

Active Member
Jul 9, 2019
2,405
1,475
Richland, WA
Tesla wont raise the price, they may not lower the price as soon, but raising would be suicidal.
Did you see the huge bump in price on S/X?

Tesla needs to make money, and they're still really banking on carbon offset credits. I wouldn't be surprised if Tesla bumped up each option by $500 and base price by $1,000 or so. In fact, I think they bumped up the price on Model 3 last year or something didn't they?
 

thx1139

Member
Aug 1, 2014
852
1,823
Lemont, IL
Did you see the huge bump in price on S/X?

Tesla needs to make money, and they're still really banking on carbon offset credits. I wouldn't be surprised if Tesla bumped up each option by $500 and base price by $1,000 or so. In fact, I think they bumped up the price on Model 3 last year or something didn't they?

They are new versions of the car. That is totally different. You are not going to see the cars bump up $7k after the new EV tax credit happens (if it does). World would see right through that.

Dont start with the carbon offset credits. Tesla cars all have nice healthy margins on them. All the carbon offset credits are doing is having other manufacturers paying for the build out of new factories.
 

acarney

Active Member
Jul 9, 2019
2,405
1,475
Richland, WA
They are new versions of the car. That is totally different. You are not going to see the cars bump up $7k after the new EV tax credit happens (if it does). World would see right through that.

Dont start with the carbon offset credits. Tesla cars all have nice healthy margins on them. All the carbon offset credits are doing is having other manufacturers paying for the build out of new factories.

I agree about the offsets, but the fact is Tesla's balance sheet would look A LOT worse without them right now. If Tesla can grab a couple thousand more for each vehicle right now and still see healthy demand, they absolutely will. For all of Musk's "we won't have holiday weekend blow out sales" and stuff, they use that price as a key demand lever all the time.

Tesla did do a $500 price increase on the 3 at the end of 2019, seemingly out of the blue, and that also was right before the tax credit ended. I could easily see a $500 bump on 3 and $1,000 bump on Y and maybe a $500 bump on the paint option. They could state that cost of materials have increased and that the paint bump was to align it with the paint upgrade cost on the S/X. For the any non-white Y that would be $1,500 extra coming in the door, yet still up to $5,500 cheaper (assuming you can use the full credit). If you can deliver 55k cars like that in a quarter, that would be almost $100 million more from a very small price bump that ultimately still resulted in a "cheaper" car. It's a drop in the bucket to the overall revenue, but for income, if they could recognize all of that, that would be almost a 25% increase for that quarter.
 

quitepossibly

Member
Oct 7, 2018
21
16
San Jose, CA
If I were Tesla, I would raise price by $7,000 and include the "Full Self Driving" option with each car. Then they can call it a $3,000 discount when they are actually raising the average transaction price by quite some margin.
 
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M3Nicola

Member
Mar 23, 2019
90
115
USA
If I were Tesla, I would raise price by $7,000 and include the "Full Self Driving" option with each car. Then they can call it a $3,000 discount when they are actually raising the average transaction price by quite some margin.
Now this is actually a brilliant idea. It would essentially allow Tesla to sell FSD on every car, they’d make more money at zero marginal cost, the cost to the buyer stays the same, and buyers are getting something of value so optically it doesn’t just look like Tesla jacked up prices to offset the tax credit.
 

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