I think they can spin the message here pretty strongly if they do it right. The advantage to extending it to say 400k or the next 2-3 years means that as of the current state it’s only the AMERICAN manufacturers that will be disadvantaged with the current cap and any foreign manufacturers are going to have a significant advantage starting in mid 2019. Right when the next recession is going to be beginning. :-0
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US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker
- Thread starter seattlite2004
- Start date
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- Model 3
End of year with your 1040. However, if you know your rough tax numbers, you can adjust your employer withholding now to effectively get the credit sooner. Just remember to set it back to normal next year.
And congratulations!
Thanks for the quick response. If I wait and submit it with my taxes... wouldn’t the full tax credit be gone? Or there’s a place for date of purchase for number of EV cars to reflect full tax credit?
ℬête Noire
Active Member
What mongo said. Also, there is a separate form to fill out to include with your 1040 filing. Form 8936.
BTW you might want to check your 2017 1040 to make sure you had $7500 tax liability last year (assuming you'll be making about the same amount this year). If you had less than that you'll want to check with an accountant about ways you can increase that to fully utilize the Tax Credit.
BTW you might want to check your 2017 1040 to make sure you had $7500 tax liability last year (assuming you'll be making about the same amount this year). If you had less than that you'll want to check with an accountant about ways you can increase that to fully utilize the Tax Credit.
ℬête Noire
Active Member
The important date is when the vehicle is "put into operation", basically the date that you put license plates on it. That's the date that will go on the 8936 form. It's like any other tax deduction. It's something you did in 2018, even though you are filing the paperwork during the next year.
I think it’s more specifically the registration date which was the date of purchase. The plates on date could have been weeks or even later. Anyone finalizing their purchase by 23:59:59 on 12/31/18 is getting the full 7500$ that currently stands. Even if they don’t put plates on till sometime in 2019
Yah, but I think they were referring to the date of purchase (temp plating/ registering) not the date of new metal plates arriving. (you could be transferring plates)
The IRS form calls it the in service date
. The instructions give no clarity to what this means, but it typically is when you have both paid for the car and driven it off the lot. The IRS verbiage around the 'acquire' date is more hazy with references to state title transfer. However, it does say you can rely on the OEM certification of credit eligibility you receive at purchase, which is based on sales date.
FWIW, there was a court case in which the defendants bought a car while an incentive was going on, but didn't receive the car until the next year.
boriszima
Member
As of today, is it believed that if one placed an order wether with $1k reservation or 2.5K, they will receive car before end of the year?
Knightshade
Well-Known Member
For any currently orderable model, yeah... I believe all delivery estimates today are within the next 4 months.
Doing your taxes is always backwards looking. What you report on your taxes is what was active the date you did x. If Congress wildly change the tax code at the end of this year, and you end up in a different tax bracket, when you do your taxes next year, you report at the tax rates for this year, not what Congress passed at the end of this year, which are active at tax time next year.
In this case the critical date is when title was transferred from Tesla to the holder (you or the financial institution holding your loan), but they also take the date you took delivery (most people don't know exactly when title was transferred). The two are within a few days of each other and in this case, both would be within the full credit window.
dhanson865
Well-Known Member
Depends on the configuration
$64,000 Performance
$53,000 AWD "all in" AWD + PUP + LR
$49,000 "First available" - PUP + LR - NO AWD
$48,000 AWD LR - NO PUP
$44,000 AWD PUP - NO LR
$44,000 LR, no PUP, no AWD
$40,000 PUP, no AWD, no LR
$39,000 AWD - NO PUP - NO LR
$35,000 BASE BASE BASE Model 3 with no major options.
If you order one of the top 3 configs today and you are in the US then yes, I'd say you'll get it before Dec 31 2018.
If you are waiting for a no PUP or no LR config, that will depend on when those come out and you might be able to order one in September and still get it before Dec 31 2018 but there is no telling for sure at this point.
The OP asked about "as of today" your top three are the only ones that can be ordered.
That's what they said...The OP asked about "as of today" your top three are the only ones that can be ordered.
It's a non-refundable credit on what you owe, not a deduction. If you use the standard deduction and owe 5k for the year (which you may have already paid in withholding), then the $7,500 knocks your tax bill to zero and you get back what you paid (but never more than you paid).
Whatever your deductions are is irrelevant. As @mongo said, it's a tax credit. If your deductions went up, your bottom line tax bill may be going down, but that's dependent on what your tax situation is. The number you need to be concerned with is the taxes owed before you deduct the money withheld. On the 2017 Form 1040, it's line 63 of the main return.
I hope that congress changes the law to allow tax credits for any and all electric cars that manufacturers produce for a set number of years, say the next 8 years. Otherwise the early movers like Tesla (and Nissan and GM) will be penalized once they reach the current limits. For small manufacturers which are sell only electric cars, aka Tesla, the penalty could be disastrous and lead to bankruptcy.
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