Tesla EV Tax Credits coming back?

[T4M3]

I'm curious if any Tesla vehicle will qualify for the full $7500. It looks like the $7500 is split into two $3500 allowances:

According to this site, Tesla Model 3 Standard Range, all Model Y's, and the CyberTruck will qualify for the full $7.5K credit:

New EV Tax Credits for Tesla in the Inflation Reduction Act

The new system of EV tax credits emphasizes manufacturing requirements rather than battery size. The current EV tax credit begins at $2,500 for a 4 kWh hybrid vehicle and scales up to a max of $7,500. The new proposed EV tax credit discards battery size requirements and instead favors North...

www.voltequity.com

 

[MP3Mike]

According to this site, Tesla Model 3 Standard Range, all Model Y's, and the CyberTruck will qualify for the full $7.5K credit:

New EV Tax Credits for Tesla in the Inflation Reduction Act

The new system of EV tax credits emphasizes manufacturing requirements rather than battery size. The current EV tax credit begins at $2,500 for a 4 kWh hybrid vehicle and scales up to a max of $7,500. The new proposed EV tax credit discards battery size requirements and instead favors North...

www.voltequity.com

But do they know the battery mineral sourcing for all of those vehicles? So they might only qualify for half of that. And Model 3 SR might not at all with the pack made and assembled in China. (Unless that is localized before the tax credit starts.)

 

[fishacura]

I ordered my M3LR in Oct and received it in Feb of this year. At the time, so many of us were talking/waiting for the Build Back Better plan. Well I missed the boat and I cannot imagine it will be retroactive this late in the year....but I'm holding out hope for all of you that you get some kind of rebate for newer deliveries. Good luck! Also, 4 months in I can honestly say this is the best car I have ever owned and will never go back!!!

 

[derekmw]

I just took delivery last month of my LR. If this passes, which it sounds like it's pretty much a done deal, am I understanding it right that we just basically lost $7500 value in our resale value? Someone else buying new, once this passes, get an instant rebate at time of purchase of $7500 (if they qualify based on income of course).

 

[ColoradoMike]

I just took delivery last month of my LR. If this passes, which it sounds like it's pretty much a done deal, am I understanding it right that we just basically lost $7500 value in our resale value? Someone else buying new, once this passes, get an instant rebate at time of purchase of $7500 (if they qualify based on income of course).

Pretty much.

Bearded Tesla Guy has a good video out on this.

 

[Haste]

LR won't be covered anyway and the bill will probably change 50 times before passing if it even does. Don't sweat it and enjoy your ride.

 

[MP3Mike]

The LR Model 3 won't qualify. (MSRP too high.) We also don't know if Tesla sources enough of their battery minerals from appropriate countries.

 

[derekmw]

The LR Model 3 won't qualify. (MSRP too high.) We also don't know if Tesla sources enough of their battery minerals from appropriate countries.

I thought the MSRP was still below $55k. I guess I haven't followed up after it went up. I placed my order before the MSRP passed the $45k (which I needed to qualify for the CVRP here in CA). It's already gone up over $10k in MSRP since then?

For battery, I guess I am completely ignorant there, I thought only the LFP was from other countries but that the other batteries would still qualify. Seems I know very little. lol

 

[ColoradoMike]

The LR Model 3 won't qualify. (MSRP too high.) We also don't know if Tesla sources enough of their battery minerals from appropriate countries.

This actually "depends" based on how things are written and also when you placed the order. Either way, right now this does not apply for folks that just purchased this year and take delivery this year. My price is $55,940.00 Where thery is wiggle room is that there is a destination "fee" and order "fee" that will be should be subtracted from the MSRP. So will see how it pans out.

 

[MP3Mike]

I thought the MSRP was still below $55k. I guess I haven't followed up after it went up. I placed my order before the MSRP passed the $45k (which I needed to qualify for the CVRP here in CA). It's already gone up over $10k in MSRP since then?

The base LR price is now $57,990. (Before the $1,200 destination fee or $250 order fee.) You got the CVRP and a lower price than if you cancelled the order and waited for 2023 for delivery. i.e. you are still paying less than someone would assuming it did qualify for the $7,500.

 

[MP3Mike]

This actually "depends" based on how things are written and also when you placed the order. Either way, right now this does not apply for folks that just purchased this year and take delivery this year. My price is $55,940.00 Where thery is wiggle room is that there is a destination "fee" and order "fee" that will be should be subtracted from the MSRP. So will see how it pans out.

Sure, but it is unlikely that you could delay your order until 2023. Tesla isn't playing those reindeer games anymore.

 

[derekmw]

The base LR price is now $57,990. (Before the $1,200 destination fee or $250 order fee.) You got the CVRP and a lower price than if you cancelled the order and waited for 2023 for delivery. i.e. you are still paying less than someone would assuming it did qualify for the $7,500.

Ah, so they must have changed how they base the MSRP on? For mine, the MSRP was below $45k with the LR battery as an added option, so I could still qualify for CVRP.

Yes, you are correct that I still probably paid less than someone buying later, but my bigger concern was the 'equity' I thought I would have. My re-sale value drops quite a bit if this goes through.

 

[ColoradoMike]

Sure, but it is unlikely that you could delay your order until 2023. Tesla isn't playing those reindeer games anymore.

Correct. I think Tesla will be cracking down on things like that. 100% agreement.

 

[PLUGZIN]

I read the current text states it is not retroactive; it keeps the current sales cap in place until 12/31/22. My understanding is that if the final bills stays the same it will go into effect in 2023.

 

[MP3Mike]

Ah, so they must have changed how they base the MSRP on? For mine, the MSRP was below $45k with the LR battery as an added option, so I could still qualify for CVRP.

For the federal tax credit the price cut-offs are based on the full MSRP, including options. (At least as far as I have seen.) By "base" I meant white/black/small wheels; i.e. the cheapest Model 3 LR you can order.

Yes, you are correct that I still probably paid less than someone buying later, but my bigger concern was the 'equity' I thought I would have. My re-sale value drops quite a bit if this goes through.

Does it really? Even if the Model 3 LR doesn't qualify for any federal tax credit?

 

[derekmw]

For the federal tax credit the price cut-offs are based on the full MSRP, including options. (At least as far as I have seen.) By "base" I meant white/black/small wheels; i.e. the cheapest Model 3 LR you can order.


Does it really? Even if the Model 3 LR doesn't qualify for any federal tax credit?

I suppose only if Tesla structures pricing to bring MSRP to be at or below the $55k limit? If they do, it will. But if they don't, I guess it won't affect current owners.

 

[theocguy]

does the msrp for the car exclude taxes and destination fee?

 

[MP3Mike]

does the msrp for the car exclude taxes and destination fee?

Most likely, yes.

 

[patmurphey]

Tesla could always go back to Panasonic 2170s in lieu of the CATL LFP batteries for the SR Model 3.

 

[youscott]

Will the Model Y's qualify? Since they are crossover SUV?