Tesla EV Tax Credits coming back?

[240W]

You are entitled to your opinion but I would say that if you make 100K per year you probably don't need to be buying a $50,000 Tesla.

what if the person is on the fence... regardless of how much one makes, if there's an ev incentive that can sway a person buying an ev instead of a nice ICE, wouldn't that be the point?

 

[PineNut]

That's an easy fix - gate unlocking the faster 0-60 , track mode, and other stuff behind a post-purchase add on. new price is $54,990 with a $4000 purchase afterwards.

Since the current limit for a sedan in the BBB bill is $55K, your $54,990 solution is cutting it very close and could be exceeded with the next Tesla price increase. Then again, it may be a deterrent for Tesla to keep increasing the price.

That $54,990 price might even be too high already. It depends on if the $1200 destination charge would be considered part of the MSRP by the BBB bill or the IRS. I don't know if it will or not.

Good suggestion, though!

 

[ElectricIAC]

Since the current limit for a sedan in the BBB bill is $55K, your $55,990 solution is cutting it very close and could be exceeded with the next Tesla price increase. Then again, it may be a deterrent for Tesla to keep increasing the price.

That $55,990 price might even be too high already. It depends on if the $1200 destination charge would be considered part of the MSRP by the BBB bill or the IRS. I don't know if it will or not.

Good suggestion, though!

If it's on the monroney, it's part of the sticker.

$55,000 would need to be $53,799+$1,200 destination.

 

[PNWLeccy]

You are entitled to your opinion but I would say that if you make 100K per year you probably don't need to be buying a $50,000 Tesla.

For argument's sake, what does someone who makes 100k per year NEED?

 

[Corndart]

Since the current limit for a sedan in the BBB bill is $55K, your $54,990 solution is cutting it very close and could be exceeded with the next Tesla price increase. Then again, it may be a deterrent for Tesla to keep increasing the price.

That $54,990 price might even be too high already. It depends on if the $1200 destination charge would be considered part of the MSRP by the BBB bill or the IRS. I don't know if it will or not.

Good suggestion, though!

Let me try to track down the other source from a few weeks back but the TLDR as I understand is that MSRP = the base price of the vehicle and does NOT include any add ons such as destination charges, taxes, documentation fees, and other assorted things that get tacked on like extended warranty. In this case it would be 58,990 for the M3P, so just knock it down and make some stuff reflected in add ons. You may not even need to have it be an "after purchase" thing like I suggested above.

 

[rlzalusky]

If any subsidy need be given, it should be given to those who may actually need it to convert from ICE to BEV. No handouts are needed for upper middle and above, present company included

Upper income really varies by where you live and when you got there. Somebody in the bay area who got here in the 80s might be very comfortable. Somebody who got here making 150K+ may still be living on the edge because most of it is going to rent or mortgage.

If however you live in Tennessee the whole dollar amount is totally different. You just can't apply a single amount to the whole country and assume it defines lower/middle/upper income.

What is more important to get BEVs out there or worry about some percentage of upper income people buying a car with their chump change?

 

[orion2001]

Looking back, it's really too bad they didn't put the EV credits into the Bipartisan Infrastructure Bill. I don't see the EV credits being a deal breaker with the republicans that signed onto that bill. The cost is minimal and it fits alongside the other EV charging funding that was passed. That would have really saved us here a lot of frustration and grief.

They would have if there was bipartisan support. Unfortunately, with climate change becoming a purity test for one party, there is no appetite for supporting anything that hurts the oil and gas industry and is a measure to help the environment. I say this because I too thought that this would be a bipartisan enough topic, especially with it supporting industry and jobs in the US. Unfortunately not true. It's been rather depressing to see a complete denial of climate science and the real dangers that lie ahead by huge sections of society.

 

[orion2001]

You are entitled to your opinion but I would say that if you make 100K per year you probably don't need to be buying a $50,000 Tesla.

For argument's sake, what does someone who makes 100k per year NEED?

I suspect his answer is going to be a Camry

 

[jsmay311]

The BBB act is a reconciliation bill to the Fiscal 2022 budget resolution that was previously passed by the Senate. It has to pass this year or they have to start over with a new budget resolution.

The reconciliation process is very convoluted and I don't understand it 100%, but I'm 99% sure this is incorrect.

For one thing, why would the fiscal year 2022 (which we're already in the midst of) have a key deadline aligned with the calendar year?

Also, recent reporting has talked about the Senate Majority Leader "aiming" for passing BBB before Christmas, and being hopeful he can move Manchin along that quickly. That reporting describes that target as a "self-imposed deadline". If Dec 31st was do-or-die deadline, there would have been a ton of focus on that date in the reporting. But I've seen zero mentions about Dec 31st as having any significance at all.

Other reporting has talked about the White House having "no deadlines" for negotiating the bill.

 

[MY-Y]

With the update, it looks like a purchase just needs to be after 12/31/21, not after the bill passes. As far as I'm concerned, it is now easy. My EDD was 12/2, I called today to put a 30 day hold, which falls perfectly on 1/1/22. I'll go forward then regardless of the state of this bill.

I hope the whole BBB bill fails and goes away. If it passes, at least it looks like I won't just miss the credit.

 

[doomsday997]

The reconciliation process is very convoluted and I don't understand it 100%, but I'm 99% sure this is incorrect.

For one thing, why would the fiscal year 2022 (which we're already in the midst of) have a key deadline aligned with the calendar year?

Also, recent reporting has talked about the Senate Majority Leader "aiming" for passing BBB before Christmas, and being hopeful he can move Manchin along that quickly. That reporting describes that target as a "self-imposed deadline". If Dec 31st was do-or-die deadline, there would have been a ton of focus on that date in the reporting. But I've seen zero mentions about Dec 31st as having any significance at all.

Other reporting has talked about the White House having "no deadlines reconciliation process is very convoluted and I don't understand it 100%, but I'm 99% sure this is incorrect.



Also, recent reporting has talked about the Senate Majority Leader "aiming" for passing BBB before Christmas, and being hopeful he can move Manchin along that quickly. That reporting describes that target as a "self-imposed deadline". If Dec 31st was do-or-die deadline, there would have been a ton of focus on that date in the reporting. But I've seen zero mentions about Dec 31st.

Good point. I can’t find hard info of that either. Supposedly it’s supposed to be based on calendar year, but I’ve seen no reporting saying this has to be done by the 31st. Only concerns I’ve seen about it slipping into next FY is momentum will be lost and it will mark the beginning of election season which could scare possibly scare some votes away

 

[ElectricIAC]

I suspect his answer is going to be a Camry

Clipper card.

 

[pepperoni]

If you look at Bearded Tesla Guy's latest video entitled November 18th Tax Credit Update at the 2:15 minute mark he speaks to this language of whichever comes later.

Ok the Bearded Tesla Guy said it. I watched his new video released today and he said the same thing, but… I still don’t see where it says in the bill that the tax credit only applies to cars purchased after the bill gets signed. The bill clearly does say that it applies to vehicles purchased after Dec 31. Am I missing something? Does Mr. BTG know something I don’t?

 

[1plavs]

Retroactive Tax credit update

EV tax credits: Manchin a no on Build Back Better bill, putting $12,500 incentive in doubt

The House passed Biden's Build Back Better bill in November, but it remains untouched in the Senate.

www.cnet.com

Thoughts on it being retroactive?

“As it stands, the credit provides up to $7,500 in a tax credit when you claim an EV purchase on taxes filed for the year you acquired the vehicle. So, if you bought an EV this year, in 2021, you would claim the purchase when filing your 2021 taxes next year.”

 

[voxel]

Retroactive Tax credit update

EV tax credits: Manchin a no on Build Back Better bill, putting $12,500 incentive in doubt

The House passed Biden's Build Back Better bill in November, but it remains untouched in the Senate.

www.cnet.com

Thoughts on it being retroactive?

“As it stands, the credit provides up to $7,500 in a tax credit when you claim an EV purchase on taxes filed for the year you acquired the vehicle. So, if you bought an EV this year, in 2021, you would claim the purchase when filing your 2021 taxes next year.”

There are existing EV tax credits for 2021 you know. They apply to all carmakers except for Tesla and GM.

Retroactive credit is just more misguided misinformation only fools believe in. Retroactive credit will add 270K x $7500 to the final bill ($2B). Tesla sold 200K 3s and Ys in the US from Jan-Aug 2021.

 

[citivolus]

With the update, it looks like a purchase just needs to be after 12/31/21, not after the bill passes.

Sorry can you give a pointer to the language in the bill that states this?

 

[pepperoni]

Sorry can you give a pointer to the language in the bill that states this?

Take a look at my post 1766 a bit up in this thread. Language seems pretty clear to me. I don’t know why people are saying it only applies to cars purchased after the bill is signed. It’s not just theoretical to me, I have a hold until Jan 1 and it is possible bill won’t be signed by then. Here is a link to my post:

Tesla EV Tax Credits coming back?

Thinking of maybe releasing my hold around the 20th? Get ahead of the curve a bit and then hope they can't deliver until after 1/1/22. I did notice that Model 3s have now been pushed from December to January delivery for new orders... I thought of releasing my hold a bit earlier but there's...

teslamotorsclub.com

 

[MY-Y]

From the bill that passed:

 

[patmurphey]

There should be no income limit. The purpose of the credit is to encourage the sale of EVs by making their purchase price more competitive with ICE cars. It's got nothing to do with social engineering.

 

[doomsday997]

There should be no income limit. The purpose of the credit is to encourage the sale of EVs by making their purchase price more competitive with ICE cars. It's got nothing to do with social engineering.

Disagree. Someone who can afford a 100k + premium EV like an EQS or a plaid should absolutely not be getting any sort of tax break whatsoever.