Tesla EV Tax Credits coming back?

[sgalla04]

Is there any limit on the number of rebates in one tax year? I already have 4500 coming back this year for a Prius purchase. Can I add the model Y 7500 as well if my tax liability is at least the sum (12000)?

I am not sure about multiple in 1 year. I think it is only 1 per tax return per year. Now, you could probably have a spouse purchase and then file separately to get 2 credits in one year. But I will defer to a CPA for this question.

 

[Momvivant]

Only an additional $2,500 of the tax credit if applicable to cars under $80,000 made by union workers. Teslas will still qualify for $10,000 according to the Electrek article.

"The $7,500 incentive would stay, but it would be increased to $10,000 for EVs produced in the US and to $12,500 for EVs produced in the US by union workers."

In addition, there is more on page 30 of the update. Maybe taking delivery in Q3 still isn't a bad idea.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021. The portions of the proposal making the EV credit a refundable personal income tax credit along with the VIN requirement are effective for vehicles acquired after December 31, 2021. The EV credit phase-out rule is effective on the date of enactment."

From this portion of the changes to the bill it seems as if the $7,500 non-refundable tax credit will go into effect once signed into law for Teslas under $80,000 sold after May 24, 2021! What changes on Jan 1, 2022 is the increase to $10,000 for American made ($12,500 for union American made vehicles) and it will be a refundable tax credit.

Therefore, if you owe more than $7,500 in federal taxes in 2021, then taking delivery this year may still get you the original EV tax credit. This is huge news! Of course, it still needs to be passed.

Is that the right link...there’s only 15 pages and it doesn’t reference the elimination of the per manufacturer cap.

 

[sgalla04]

Is that the right link...there’s only 15 pages and it doesn’t reference the elimination of the per manufacturer cap.

Weird. Maybe I linked to the wrong one or something changed. Here are the links from the source:

The chairman’s mark of the Clean Energy for America Act is available here, and modifications to the chairman’s mark are available here.

 

[DayTrippin]

The question I have is the MSRP the price BEFORE transportation fees or any other accessories for the purposes of this bill. If so, the MS at current pricing just squeaks in.

 

[ChadS]

I am not sure about multiple in 1 year. I think it is only 1 per tax return per year. Now, you could probably have a spouse purchase and then file separately to get 2 credits in one year. But I will defer to a CPA for this question.

I am no CPA, but I have claimed 2 $7500 federal tax credits in the same year (2018). I have never seen any restriction on how many credits you can claim. If the vehicle qualifies, and you have the tax liability, you can claim the credit.

 

[TravelFree]

Therefore, if you owe more than $7,500 in federal taxes in 2021, then taking delivery this year may still get you the original EV tax credit. This is huge news! Of course, it still needs to be passed.

Recognizing this is only a proposal but deserves more credit than the other prior proposals because it made it out of committee, I would assume that the removal of the cap would only qualify Teslas for the $7500 Tax Credit if the buyer took delivery after May 24th, not prior to May 24th.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021" Is the exact wording in the proposal. However, on May 26th the committee already modified this with the following statement:
"The changes to credit amounts are effective for vehicles acquired after December 31, 2021."

The way I read this is the Proposal eliminates all Tax Credits for buyers of Tesla cars in the year 2021. So if this is passed it would only affect buyers of Tesla cars in 2022, not 2021.


It essentially is a plan that has no value to current Tesla buyers at all. Of course, I repeat, It's only a proposal and still needs to pass Senate vote which it probably will, and then has to go to the House for it's review and modifications. Adding the bit about showing favoritism to special auto workers and not others is a favorite theme of the President so that alone will get him to sign it. I actually would be surprised if the USSC would allow such language in a law that gives tax benefits to people who are a member of a favored organization of the Democrats. It violates equal protection.

So how does this benefit those of us who are buying a Tesla this year? Not much but I can see those who also invested in Tesla stock will likely do much much better than the little $10,000 tax credit. I continue to buy the stock and it is better than the car. If the House makes a change and changes the target effective date to Jan 1, 2021 then so much the better. I still think the President will sign it.

 

[TravelFree]

The question I have is the MSRP the price BEFORE transportation fees or any other accessories for the purposes of this bill. If so, the MS at current pricing just squeaks in.

Maybe as long as you don't add any options to the MS LR such as special wheels, paint and interior. If you want FSD, simply order the car without it. Then add it later. Stuff you add as extras, like floor mats and even extra wheels do not disqualify.

But if this passes into law as is, it doesn't go into affect until next year with the modifications.

 

[sgalla04]

Recognizing this is only a proposal but deserves more credit than the other prior proposals because it made it out of committee, I would assume that the removal of the cap would only qualify Teslas for the $7500 Tax Credit if the buyer took delivery after May 24th, not prior to May 24th.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021" Is the exact wording in the proposal. However, on May 26th the committee already modified this with the following statement:
"The changes to credit amounts are effective for vehicles acquired after December 31, 2021."

The way I read this is the Proposal eliminates all Tax Credits for buyers of Tesla cars in the year 2021. So if this is passed it would only affect buyers of Tesla cars in 2022, not 2021.


It essentially is a plan that has no value to current Tesla buyers at all. Of course, I repeat, It's only a proposal and still needs to pass Senate vote which it probably will, and then has to go to the House for it's review and modifications. Adding the bit about showing favoritism to special auto workers and not others is a favorite theme of the President so that alone will get him to sign it. I actually would be surprised if the USSC would allow such language in a law that gives tax benefits to people who are a member of a favored organization of the Democrats. It violates equal protection.

So how does this benefit those of us who are buying a Tesla this year? Not much but I can see those who also invested in Tesla stock will likely do much much better than the little $10,000 tax credit. I continue to buy the stock and it is better than the car. If the House makes a change and changes the target effective date to Jan 1, 2021 then so much the better. I still think the President will sign it.

My understanding was effective 2022 the union ($2,500) and American made ($2,500) additions would occur and also the credit would change to fully refundable. Effective after May 24, 2021 the cap is lifted for the current non-refundable credit ($7,500).

 

[rjpjnk]

Recognizing this is only a proposal but deserves more credit than the other prior proposals because it made it out of committee, I would assume that the removal of the cap would only qualify Teslas for the $7500 Tax Credit if the buyer took delivery after May 24th, not prior to May 24th.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021" Is the exact wording in the proposal. However, on May 26th the committee already modified this with the following statement:
"The changes to credit amounts are effective for vehicles acquired after December 31, 2021."

The way I read this is the Proposal eliminates all Tax Credits for buyers of Tesla cars in the year 2021. So if this is passed it would only affect buyers of Tesla cars in 2022, not 2021.

I interpret this differently. "The changes to credit amounts are effective for vehicles acquired after December 31, 2021." refers to the *changes* in the credit amounts. The credit amount will not change until 2022 (meaning move from 7500 to 12500). But because of the elimination of the per-manufacturer cap, Tesla would instantly become eligible for the *existing* credit amount, which is currently 7500.

 

[DayTrippin]

Maybe as long as you don't add any options to the MS LR such as special wheels, paint and interior. If you want FSD, simply order the car without it. Then add it later. Stuff you add as extras, like floor mats and even extra wheels do not disqualify.

But if this passes into law as is, it doesn't go into affect until next year with the modifications.

That is exactly what I did. I put in an order for it while the price is still below the proposed cap. Hopefully that cap won't go down.

 

[jabloomf1230]

so assuming it passes (as does the NJ law), if you buy a base Mustang Mach E in 2022 in NJ you'll get $17,500 off and no sales tax
($5K credit for EV's under $45K being passed soon in NJ)

The final assembly point for the Mach E is Cuautitlán Assembly in Cuautitlán Izcalli, Mexico.

 

[rjpjnk]

The chairman’s mark of the Clean Energy for America Act is available here, and modifications to the chairman’s mark are available here.

It's good that you posted the two links above. I was confused as well when the original linked document seemed to change.
I assume the document in the second link (15 page "modifications") preceded the first doc since all of the Chairman's modifications seem to already be in the longer document.

 

[BrianBigNFun]

The final assembly point for the Mach E is Cuautitlán Assembly in Cuautitlán Izcalli, Mexico.

well alrighty then

 

[DukeofURL]

Greetings all, my first post in the Y forum (just ordered one for my wife yesterday with the news on this getting closer to passing). After reading the bill, it looks it it has changed from what was in the news 3 months ago (increasing the cap from 200k to 600k, bringing back the credit for Tesla and GM) to now a far more generous provision. -- if this is the case, I may delay (or cancel) my order for later in order to maximize the rebate.

If the Secretary, in consultation with the Secretary of Transportation, determines that the total annual sales of new qualified fuel cell motor vehicles and new qualified plug-in electric drive motor vehicles in the United States exceed 50 percent of the total annual sales of new passenger vehicles in the United States, the amount of the EV credit is reduced according to the following schedule: by 25 percent for a vehicle purchased during the second calendar year following the determination, by 50 percent for a vehicle purchased during the third calendar year following the determination, and by 100 percent for a vehicle purchased during any subsequent calendar year.

 

[mwdietertg]

Of course, I repeat, It's only a proposal and still needs to pass Senate vote which it probably will

What makes you so confident it wont be filibustered? It passed committee along party lines, 14-14

 

[sgalla04]

Greetings all, my first post in the Y forum (just ordered one for my wife yesterday with the news on this getting closer to passing). After reading the bill, it looks it it has changed from what was in the news 3 months ago (increasing the cap from 200k to 600k, bringing back the credit for Tesla and GM) to now a far more generous provision. -- if this is the case, I may delay (or cancel) my order for later in order to maximize the rebate.

Yes, the cap looks to be extended until EVs make up >50% of cars sold in the US. Pretty aspirational, as I think this will get changed in the final bill. I saw a stat that the US market is currently around 3.5%. Not sure if that estimate is for just BEVs? or BEVs + PHEVs?. Regardless, PHEVs count towards the phase out of >50% too.

If you don't "need" the car, then definitely wait until 2022.

 

[sgalla04]

well alrighty then

I'm sure if something passes, Ford will pivot, either with new models in the US or move the Mach E to qualify. However, I think Ford is more focused on the F150 Lightening and the Mach E is just their start into BEVs.

 

[DukeofURL]

If you don't "need" the car, then definitely wait until 2022.

Indeed, I don't. We have a BMW 3 series lease that still has about a year left on it... but, I imagine Tesla might raise their price before 2022 (as they have slowly been doing). It's a toss up whether the $2500 you get in tax credit/refund will be more or less eaten by vehicle cost.

 

[sgalla04]

Indeed, I don't. We have a BMW 3 series lease that still has about a year left on it... but, I imagine Tesla might raise their price before 2022 (as they have slowly been doing). It's a toss up whether the $2500 you get in tax credit/refund will be more or less eaten by vehicle cost.

Email [email protected] and tell them your leasing situation. Maybe even include your lease contract so they understand you want the car just cannot purchase it right now. Then they will put a hold on your order. Technically max of 90 days, but considering your lease if you contact them in advance, they have been known to be flexible. Once you have an official hold until date on your order, you have nothing to worry about with price increases.

I ordered on April 7th and my SA put a hold date for 106 days later, so clearly there is some flexibility.

 

[electricloris]

Damn so the post may 24 stuff is gone, bummer