Tesla EV Tax Credits coming back?

[Gem!ni]

If it works like last time, not everyone was eligible. You have to have 7500 (or whatever the credit is) in tax liability.
Tesla has been raising prices on their cars over the past year or so, IMO, in anticipation of the tax credit. So even if you get the credit, you'll pay what you did a year ago for a new car. Tesla effectively gets the credit.

This is NOT true at all. You don't have to have $7500 in liability to take advantage of the credit. It can be added to your refund as well.

Also, judging from the language they have stated, the $8k now can also be used during point-of-sale basically making at a down payment.

I'm in no rush so I'm willing to wait till next year to see where the credit goes as well as where Tesla will be with the 4680 batteries.

 

[t.e.s.l.a_dude]

Apologies, I meant to say the car needs to be manufactured after 12/31/21. So if you take delivery in the 1st for example, the car might be excluded from the credit because it was manufactured in 2021.

This makes now perfect sense. Look at the wording of the text message I got from Tesla below. It says "the next vehicle we build for you in 2022" I told them that I am holding because of the EV tax credit. That might be the reason for the text below:

 

[Seminole]

This is NOT true at all. You don't have to have $7500 in liability to take advantage of the credit. It can be added to your refund as well.

Also, judging from the language they have stated, the $8k now can also be used during point-of-sale basically making at a down payment.

I'm in no rush so I'm willing to wait till next year to see where the credit goes as well as where Tesla will be with the 4680 batteries.

It can be added to your refund but you have to have a net tax liability of $7,500 pre-credit to get the full credit. The refund is based off your total liability compared to what you’ve paid already. If you only owe $500 in taxes you can only get a credit for $500. The EV credit can’t drop your liability below zero so if you don’t have enough tax liability to utilize all of it you lose out on part of it.

I think they are allowing it as a point of sale rebate up front for ease of use, but you’ll probably still have to fill out the ev credit form at tax time and if you didn’t qualify for the full amount you’ll get a nice surprise bill.

 

[Kairide]

It can be added to your refund but you have to have a net tax liability of $7,500 pre-credit to get the full credit. The refund is based off your total liability compared to what you’ve paid already. If you only owe $500 in taxes you can only get a credit for $500. The EV credit can’t drop your liability below zero so if you don’t have enough tax liability to utilize all of it you lose out on part of it.

I think they are allowing it as a point of sale rebate up front for ease of use, but you’ll probably still have to fill out the ev credit form at tax time and if you didn’t qualify for the full amount you’ll get a nice surprise bill.

I can’t see how doing it that way would make sense. You give someone an $8k point of sale discount on an EV. Come tax time if they don’t have $8k worth of tax liability, the IRS bills them?
In essence that would be double dipping if the person does have $8k in tax liability. They got $8k at the time of purchase and an $8k tax refund.
On the other hand that would be really bad for someone on the lower end of the income scale who doesn’t make enough to have $8k worth of tax liability.

 

[t.e.s.l.a_dude]

It can be added to your refund but you have to have a net tax liability of $7,500 pre-credit to get the full credit. The refund is based off your total liability compared to what you’ve paid already. If you only owe $500 in taxes you can only get a credit for $500. The EV credit can’t drop your liability below zero so if you don’t have enough tax liability to utilize all of it you lose out on part of it.

I think they are allowing it as a point of sale rebate up front for ease of use, but you’ll probably still have to fill out the ev credit form at tax time and if you didn’t qualify for the full amount you’ll get a nice surprise bill.

Just a couple examples, please let me know if I got something wrong below:

Say you owe $30000 in federal tax and you paid already $30500 during the year to the IRS; i.e. you have an overpayment and hence a $500 refund due from the IRS. If the EV tax credit is $8000, then your total refund will be $500 + $8000 = $8500

On the other hand, say you owe only $4000 in federal tax and you paid $4300 during the year; i.e., you have an overpayment and hence a $300 refund due from the IRS. Since your initial tax liability was only $4000, you will not get the full $8000 EV tax credit, but only $4000; i.e., in that case your total refund will be only $4000 + $300 = $4300

One note though: The current version in the House and Senate make the second example below full refundable, in that case, the second example would receive the full $8000 EV credit and the total refund amount would be $8000 + $300 = $8300.

 

[theothertom]

This is NOT true at all. You don't have to have $7500 in liability to take advantage of the credit.

Note that I specified last time. It was true last time. I don't know about this time, or even if there will be a "this time."

 

[Seminole]

I can’t see how doing it that way would make sense. You give someone an $8k point of sale discount on an EV. Come tax time if they don’t have $8k worth of tax liability, the IRS bills them?
In essence that would be double dipping if the person does have $8k in tax liability. They got $8k at the time of purchase and an $8k tax refund.
On the other hand that would be really bad for someone on the lower end of the income scale who doesn’t make enough to have $8k worth of tax liability.

Just a couple examples, please let me know if I got something wrong below:

Say you owe $30000 in federal tax and you paid already $30500 during the year to the IRS; i.e. you have an overpayment and hence a $500 refund due from the IRS. If the EV tax credit is $8000, then your total refund will be $500 + $8000 = $8500

On the other hand, say you owe only $4000 in federal tax and you paid $4300 during the year; i.e., you have an overpayment and hence a $300 refund due from the IRS. Since your initial tax liability was only $4000, you will not get the full $8000 EV tax credit, but only $4000; i.e., in that case your total refund will be only $4000 + $300 = $4300

One note though: The current version in the House and Senate make the second example below full refundable, in that case, the second example would receive the full $8000 credit.

View attachment 728158

Ah, wasn’t aware of the change to it being fully refundable. Then it basically doesn’t matter unless you make too much money to qualify.

 

[t.e.s.l.a_dude]

I put this edit in one of my previous comments, but it looks like this currently just to re-iterate:

 

[highstrunghero]

Apologies, I meant to say the car needs to be manufactured after 12/31/21. So if you take delivery in the 1st for example, the car might be excluded from the credit because it was manufactured in 2021.

This would be a complete cluster&*k if they did it this way. That means car manufacturers wouldn't be able to clear their existing inventory as buyers are only hunting for VIN's with a specific manufacturing date. Not saying the government doesn't do stupid stuff, but structuring things this way would be a total disaster.

 

[leaftoy]

Start at line 4, page 1247.

Document Viewer : NPR

apps.npr.org

If the “manufactured after 12/31/2021” language stays and does not get changed to “purchased after 12/31/2021”, we would be in a situation where people who take delivery in 2022 still need to make sure the vehicle was actually manufactured in 2022? Unless the MF to NF switch happens exactly at the same time, how do we check?

 

[patmurphey]

That paragraph refers to labeling requirements for the manufacturer and there is nothing in that graphic that refers to a manufacture date for eligibility for the credit. Please read things more carefully before making broad assumptions from an out of context paragraph.

 

[Mattev61]

Here is the text message I got from Tesla this morning:
View attachment 728056

Where did you send email to?

 

[Fluffhead]

That paragraph refers to labeling requirements for the manufacturer and there is nothing in that graphic that refers to a manufacture date for eligibility for the credit. Please read things more carefully before making broad assumptions from an out of context paragraph.

I read it several times and once again just now. I'm struggling to see how this is a labeling requirement. I see the mention of labeling with a unique VIN, but the part about being manufactured prior to later of bill signing or 12/31/21 doesn't appear to refer to labeling.

 

[t.e.s.l.a_dude]

Where did you send email to?

No email, I did online chat with Tesla

 

[Mattev61]

No email, I did online chat with Tesla

They told me an SA would get back to me. Nothing yet

 

[t.e.s.l.a_dude]

They told me an SA would get back to me. Nothing yet

That's what they told me as well on Friday. They also got my contact info but no one called. When I checked my status this (Monday) morning, the delivery was put on hold

I suspect that the SA checked the whole chat session where I clearly indicated that I want to take delivery after 1/1/22 and did not bother to call me and went forward with putting the hold.

 

[Sing830]

different SA will have a different answer

Order #1 (8/12) .... i can put on hold until 1/1/22 after i got the VIN.
Order #2 (9/14) .... I was told i can only hold for 30 days after i got the VIN this first time.

 

[t.e.s.l.a_dude]

It may also depend on whether you have put in the preliminary information after your order. I was not assigned the VIN yet, however, I put in the registrant info and payment method. The next step was to put in insurance info but since I did not have a VIN, I was not able to put that info in. With this said, they were able to put the hold only with the information I gave them during the online chat session.

 

[JimmySure]

If it works like last time, not everyone was eligible. You have to have 7500 (or whatever the credit is) in tax liability.
Tesla has been raising prices on their cars over the past year or so, IMO, in anticipation of the tax credit. So even if you get the credit, you'll pay what you did a year ago for a new car. Tesla effectively gets the credit.

Yep. I get the feeling the regular price increases were definitely a deliberate tactic to soften the blow for folks who bought in 2021 and will miss out on the credit. The ones who potentially stand to make out would be folks that ordered in 2021 before most of the price hikes, but taking delivery next year.

 

[ChadS]

Have the price hikes only been in the US?