Tesla EV Tax Credits coming back?

[FFCars]

Just for fun, can we discuss the income minimums needed to get the $7,500 tax credit. Let’s assume a M3SR qualifies.

They call it a tax credit, so the assumption is you make $______ to get the full $7.,500. But you can’t make more than $150k. So what is the lowest amount you can make to receive 100% of the credit? Any tax experts here to give us the calculation of the minimum amount you need to make?

I bring this up for two reasons. First, if they really want EV adoption, it has to be more affordable for young people who may not have great jobs yet. Second, if the tax credit is really a rebate, won’t we all just have our poorer kids buy the car?

Even though they keep talking about an income limit, they forget to talk about an income minimum. We need to spread the word….once we figure out what the minimum is.

 

[ucmndd]

It’s ~$50k plus or minus for a single filer.

Solved: If I purchase an electric vehicle with the 7500 tax credit, how do I ensure that I will owe enough at the end of the year to see that full credit when I do my taxes?

 

[voxel]

It’s a refundable tax credit in 2023.

 

[RickCRNA]

The income limits are much higher than $50K. However, the Model 3LR is to expensive to qualify for any tax credits/rebates.

 

[glide]

They call it a tax credit, so the assumption is you make $______ to get the full $7.,500. But you can’t make more than $150k. So what is the lowest amount you can make to receive 100% of the credit? Any tax experts here to give us the calculation of the minimum amount you need to make?

You need to have a tax burden of at least $7500

I bring this up for two reasons. First, if they really want EV adoption, it has to be more affordable for young people who may not have great jobs yet. Second, if the tax credit is really a rebate, won’t we all just have our poorer kids buy the car?

Who is “they” in this sentence? If you think this credit is about EV adoption for lower-income people, I have a bridge to sell you.

Even though they keep talking about an income limit, they forget to talk about an income minimum. We need to spread the word….once we figure out what the minimum is.

No. They don’t forget to talk about it because there really isn’t one. As I mentioned above, you simply need to have a tax burden of $7500 to take advantage of the credit (if it is not delivered at POS)

Also, wrt to in come minimums, maybe people making $20K a year shouldn’t be buying $70K vehicles…I am not a financial advisor though.

 

[patmurphey]

You need to have a tax burden of at least $7500...

Not true if it is a refundable tax credit, as the new credit has been characterized so far.

 

[MP3Mike]

Shipping it back? Why is processing something to be done in China? Is it difficult to do in the US?
Where did Elon talk about that?

@Norbot I ran across a different video today where a former Tesla executive was talking about the supply chain woes that you might be interested in:

You'll notice that refining is only in places:

This is one of the things the IRA bill is trying to force to be changed.

 

[ItsNotAboutTheMoney]

It’s a refundable tax credit in 2023.

Citation needed.

I know there's possibility of getting it at time of purchase from a dealer, but I didn't see anything obvious in the bill text about the tax credit changing to refundable.
(Bills should come with diff files, it would make things much easier).

 

[fishacura]

So bummed to have taken delivery in the Spring but hey good for those of you who are waiting for yours.

 

[Tam]

The Treasury is not ready to publish 2023 list of eligible EV credits based on other factors beyond final assembly in the US, so Tesla 200,000 sold EV cap will be lifted off and the $7,500 credit will be reinstated without proving critical minerals and battery components compliance.

The price and income caps are still applied:

U.S. Treasury will delay EV battery sourcing guidance until March

WASHINGTON (Reuters) -With a revamped $7,500 electric vehicle tax credit taking effect Jan. 1, the U.S. Treasury Department said on Monday it will delay until March its release of proposed guidance on the required sourcing of electric vehicle batteries. The announcement means some electric...

www.yahoo.com

 

[MP3Mike]

The Treasury is not ready to publish 2023 list of eligible EV credits based on other factors beyond final assembly in the US, so Tesla 200,000 sold EV cap will be lifted off and the $7,500 credit will be reinstated without proving critical minerals and battery components compliance.

The price and income caps are still applied:

U.S. Treasury will delay EV battery sourcing guidance until March

WASHINGTON (Reuters) -With a revamped $7,500 electric vehicle tax credit taking effect Jan. 1, the U.S. Treasury Department said on Monday it will delay until March its release of proposed guidance on the required sourcing of electric vehicle batteries. The announcement means some electric...

www.yahoo.com

We'll see how that goes. The IRA has a hard deadline in it:

"(B) DEADLINE FOR PROPOSED GUIDANCE.—Not later than December 31, 2022, the Secretary shall issue proposed guidance with respect to the requirements under this subsection.’’

So what happens if they don't meet the deadline? That and the article is very poorly written:

That decision means electric vehicles that are not in compliance with battery sourcing rules could be eligible for $7,500 tax credits sometime in March.

What? So, somehow vehicles that aren't in compliance will qualify after the guidance is released? (They probably meant that they will be eligible until sometime in March.)

But again, the Secretary is required to release the guidance by the end of this year...

 

[acarney]

We'll see how that goes. The IRA has a hard deadline in it:



So what happens if they don't meet the deadline? That and the article is very poorly written:



What? So, somehow vehicles that aren't in compliance will qualify after the guidance is released? (They probably meant that they will be eligible until sometime in March.)

But again, the Secretary is required to release the guidance by the end of this year...

I wonder if that means under the OLD system the vehicles will still be eligible until "sometime in March" when they assume that the guidance will have been released. For Tesla that would be a no go, but there are still a few companies out there that CAN get the $7500 from the old tax credit and maybe instead of that disappearing Jan 1st, it'll keep carrying over until the new program kicks in.

 

[voxel]

There could be a battery minerals + components waiver issued for EVs from Jan 1 to March, right?

Or rules will be retroactive to Jan 1st.

Guess I'm going to push for a 45W lease then!!!