Tesla EV Tax Credits coming back?

[pepperoni]

If this does include the retro for May 2021, I wonder if my 03/24/21 delivery would get the credit, because my payments didn't start until May...

A lot is still uncertain about the final version of the bill, but it is virtually certain it will not be retroactive to last May. It’s an incentive for people to purchase these cars in the future, not a reward for people who bought them last year.

 

[carlos31820]

If this does include the retro for May 2021, I wonder if my 03/24/21 delivery would get the credit, because my payments didn't start until May...

I believe it goes by the date you took possession of the car (delivery date). Payment start dates would be irrelevant for someone that paid cash.

 

[Spidey616]

If this does include the retro for May 2021, I wonder if my 03/24/21 delivery would get the credit, because my payments didn't start until May...

Retroactive hasn’t been on the table in ages. Seems very unlikely it would come back now.

 

[bro1999]

Extremely doubtful. It would be based on the purchase date.

Best bet is credits are replenished upon date of Biden signing it.

 

[torifile]

Best bet is credits are replenished upon date of Biden signing it.

That seems at least plausible. Rolling back to a previous regulation seems easier than creating new legislation.

 

[ishareit]

My late September order for MYLR got updated with EDD of Nov 11-22. That came pretty quickly... I wasn't expecting that.

My mind wants to put the order on hold until Jan 1, but my heart wants to take the delivery... Decisions...

 

[Albertsv]

Yep... I think being almost mid November it would make sense to wait month and potentially get a tax credit... Hoping that it passes

 

[rcp1]

I suppose the silver lining here is that his opposition to the union credit suggests he is supportive of the base 7500 credit?

 

[davidlee]

anyone know how PHEV vehicles will be affected in the build back better plan? I can't locate any details on that.

 

[bro1999]

Joe Manchin doesn't think the union-made part of the tax credit is fair. No problem, just make it $12.5k across the board then.

 

[MY-Y]

Joe Manchin doesn't think the union-made part of the tax credit is fair. No problem, just make it $12.5k across the board then.

Of course, as taxpayers, the government is giving away our money. The more they give away, the more they'll take, and and the more they'll control.

 

[PineNut]

anyone know how PHEV vehicles will be affected in the build back better plan? I can't locate any details on that.

PHEVs would get at least a $4K credit but most won't qualify for the additional $3.5K because that requires at least a 40 kWhr battery and no more than a 2.5 gallon gas tank. However, I think they could qualify for a bigger credit if they have a US made battery which adds $500 and/or are made in the US with union labor which would add another $4.5K.

One example would be the Rav4 Prime which would only qualify for a refundable $4K credit (car is made in Japan but I'm not sure where the battery is made) instead of the nonrefundable $7.5K it currently qualifies for. So if someone wants a Rav4 Prime it would probably be best to purchase a new 2021 or 2022 model this year (unless they don't owe enough taxes in 2021 to cover the $7.5K credit).

If the Build Back Better Act does not pass, then I think the current 2021 tax credits would remain until the maximum number of cars sold is exceeded.

By the way, here is the latest text of the BBB Act (as of Nov 3rd):

Build Back Better Act 11/3/21

The EV credit text begins on page 1480. Note that line 9 of that page says it will be a refundable credit.

 

[orion2001]

MYLR and M3 price went up $1000 again! This is getting rather absurd. Price is now $8K higher than when I ordered my MYLR in April and I feel bad for those who were waiting for the tax credits but didn't lock-in old prices. I guess my MYLR will be a steal if tax credits happen but at this point I'm more concerned about how crazy things are getting with car prices due to supply chain issues and all the pent-up demand.

 

[davidlee]

PHEVs would get at least a $4K credit but most won't qualify for the additional $3.5K because that requires at least a 40 kWhr battery and no more than a 2.5 gallon gas tank. However, I think they could qualify for a bigger credit if they have a US made battery which adds $500 and/or are made in the US with union labor which would add another $4.5K.

One example would be the Rav4 Prime which would only qualify for a refundable $4K credit (car is made in Japan but I'm not sure where the battery is made) instead of the nonrefundable $7.5K it currently qualifies for. So if someone wants a Rav4 Prime it would probably be best to purchase a new 2021 or 2022 model this year (unless they don't owe enough taxes in 2021 to cover the $7.5K credit).

If the Build Back Better Act does not pass, then I think the current 2021 tax credits would remain until the maximum number of cars sold is exceeded.

By the way, here is the latest text of the BBB Act (as of Nov 3rd):

Build Back Better Act 11/3/21

The EV credit text begins on page 1480. Note that line 9 of that page says it will be a refundable credit.

ty!

 

[Sexy_owner]

MYLR and M3 price went up $1000 again! This is getting rather absurd. Price is now $8K higher than when I ordered my MYLR in April and I feel bad for those who were waiting for the tax credits but didn't lock-in old prices. I guess my MYLR will be a steal if tax credits happen but at this point I'm more concerned about how crazy things are getting with car prices due to supply chain issues and all the pent-up demand.

Only MY went up in price. M3 prices didn’t increase for the time being. We will see if that changes soon.

 

[bro1999]

MYLR and M3 price went up $1000 again! This is getting rather absurd. Price is now $8K higher than when I ordered my MYLR in April and I feel bad for those who were waiting for the tax credits but didn't lock-in old prices. I guess my MYLR will be a steal if tax credits happen but at this point I'm more concerned about how crazy things are getting with car prices due to supply chain issues and all the pent-up demand.

I think back to early this year when the SR Y was made available for like 3 days and I actually was on the Tesla website toying around with a 7 seater build for $42k ($39k base + $3k for 7 seat option). Doh!

 

[bro1999]

Only MY went up in price. M3 prices didn’t increase for the time being. We will see if that changes soon.

FIFY
I predict at least the 3 LR and P trims bump up $1k by this time next week.

 

[orion2001]

Only MY went up in price. M3 prices didn’t increase for the time being. We will see if that changes soon.

Yup, I was mistaken. It's both the MYLR and MYP that went up by $1K I believe.

 

[SkeetShooter]

Is the reason why the Point of Sale portion of the tax credit was pushed to 2023 because the IRS/US Gov doesnt anticipate getting their crap together before then? Its too bad because, at least in my state (CT) because its not POS, I have to now pay sales tax on the full price of the vehicle, and not the reduced price with the POS credit. It roughly equates to $500 more out of my pocket going to my state. Granted, not a lot in the grand scheme, but still, another way that my state and the gov has been able to extract more tax dollars out of me. SMH

 

[pepperoni]

Is the reason why the Point of Sale portion of the tax credit was pushed to 2023 because the IRS/US Gov doesnt anticipate getting their crap together before then? Its too bad because, at least in my state (CT) because its not POS, I have to now pay sales tax on the full price of the vehicle, and not the reduced price with the POS credit. It roughly equates to $500 more out of my pocket going to my state. Granted, not a lot in the grand scheme, but still, another way that my state and the gov has been able to extract more tax dollars out of me. SMH

It probably helps slightly with the CBO by pushing next year’s costs into a later year. I think you would need to pay sales taxes on the full price of the car anyway. If you want your rebate next year rather than 2023, just reduce your federal tax withholdings until you get your money back. It may take a few months but faster than waiting a whole year. This all depends on whether the bill passes of course.