WA State EV Sales Tax Exemption Updated

[Nevek]

Electric Car Incentives In Washington State Expanded To More Models

It looks like the new bill goes into effect July 1, 2016 for the first $32k of an EV sale, which makes a lot more sense than the old bill that had no sales tax credit for any EV over $35K.

There was a thread regarding this in the forum but I can't seem to find it. Anyway, worth considering if you are timing your Tesla delivery.

 

[ChadS]

Yeah, it's mostly good news. Although what they didn't note was that there is a dollar cap (I have heard two different numbers) on how much they will give out through this program. They say it expires in 2019, but it could be far in advance of that.

I haven't run the numbers myself. Two people I know did; one said it would run out in late 2016 or early 2017, the other said it would run out in 2019. So we'll see.

HERE is the other thread. It was under the Model 3 forum rather than the PNW forum. It probably makes more sense here.

 

[Nevek]

Yeah, it's mostly good news. Although what they didn't note was that there is a dollar cap (I have heard two different numbers) on how much they will give out through this program. They say it expires in 2019, but it could be far in advance of that.

I haven't run the numbers myself. Two people I know did; one said it would run out in late 2016 or early 2017, the other said it would run out in 2019. So we'll see.

HERE is the other thread. It was under the Model 3 forum rather than the PNW forum. It probably makes more sense here.

Thanks, Chad, I knew you had been tracking and reporting on it closely but couldn't find the thread to append to!

Hopefully the folks at Telsa would tell people about this but in case they didn't, getting the news out quickly seems important for someone buying in the next couple of months. It would be a drag to pay the full tax in June and find out it would have been $3K less by waiting a few days.

 

[ChadS]

The eligibility criteria changed, but it still doesn't apply to the S or X. The car has to start at $42,500 or less.

Bummer.

 

[Nevek]

The eligibility criteria changed, but it still doesn't apply to the S or X. The car has to start at $42,500 or less.

Bummer.

Bummer indeed, thanks for the update. I thought at least a partial credit would apply to the S and X. Somehow I missed the $42.5k new cap on the base. 0/2 for me on finding the details.

Can't let those rich bast***s have extra incentives to go electric. /s

Glad I got mine in April 2015. The original tax break was one of the reasons I switched from a reserved X to a pre-July 1, 2015 delivery S, and now I still prefer the S.

 

[v12 to 12v]

Bummer indeed, thanks for the update. I thought at least a partial credit would apply to the S and X. Somehow I missed the $42.5k new cap on the base. 0/2 for me on finding the details.

Can't let those rich bast***s have extra incentives to go electric.

I wonder how they define "base price".

This looks more like a tax on larger batteries or long range cars rather than a "rich bas***s" tax.

 

[brianman]

I wonder how they define "base price".

This looks more like a tax on larger batteries or long range cars rather than a "rich bas***s" tax.

Maybe it's time to reintroduce the "limited edition" S40 to reset the "base price" on Model S down to $40k. There are many ways to "play the game".

 

[ChadS]

So limited, it's only sold in Washington, and only in dayglo pink.

More seriously, I wonder if BMW might revamp how they sell the i3. Right now the BEV is eligible, but the REX is not because it's a separate line with a $46k starting price. Could they change the REX to be an option?

More importantly, when they come out with a longer-range BEV...will they keep selling the existing one at the same or lower price? Will the extra-range battery be an option? That's one of the problem with state-specific incentives...it's often not a big enough market to be worth the manufacturer messing around.

 

[deonb]

So limited, it's only sold in Washington, and only in dayglo pink.

And if you want windshield wipers, it's a $10'000 option.

 

[Foxhound199]

Is there any way to find out how close the state is to issuing the 7,500 exemptions? I'm really curious how much notice we will get when this is approaching expiration, or if it will be extended.

 

[Scott-P]

The $7500 is a FEDERAL tax credit, and depends on how many cars the manufacturer has sold. The credit begins to phase out at 200,000 (or maybe 250,000) units sold, and then disappears over the following year. The IRS web site has a thorough (if somewhat obtuse) description on it. The State of WA has nothing to do with it.

 

[deonb]

The $7500 is a FEDERAL tax credit, and depends on how many cars the manufacturer has sold. The credit begins to phase out at 200,000 (or maybe 250,000) units sold, and then disappears over the following year. The IRS web site has a thorough (if somewhat obtuse) description on it. The State of WA has nothing to do with it.

He's talking about this:

Washington's alternative fuel vehicle sales tax exemption is slated to expire midway through 2019. It could expire sooner if sales of electric vehicles accelerate. Legislators decided the tax break should end the month after 7,500 qualifying vehicles are sold in Washington state.

 

[Scott-P]

He's talking about this:

Washington's alternative fuel vehicle sales tax exemption is slated to expire midway through 2019. It could expire sooner if sales of electric vehicles accelerate. Legislators decided the tax break should end the month after 7,500 qualifying vehicles are sold in Washington state.

Ah, my error. I don't think that I was aware of that, since it doesn't apply to Teslae...

 

[Foxhound199]

I don't think that I was aware of that, since it doesn't apply to Teslae...

It will as soon as the Model 3 comes out. Since the price limit applies to base model price, all Model 3s will be eligible. The question is, for how long? When the law came out about a year ago, estimates pegged the initial allotment to run out sometime early 2018, a time frame that should definitely be of interest to WA model 3 reservation holders. Nearly a year into the new exemption rules, I'm curious how that estimate is holding up.

 

[MikeBur]

Quick revisit on this thread. Does anyone know of a way to check current state of this exemption and when it is expected to expire, and/or any changes for this year please?

 

[melindav]

about a week ago sent an email off to both DOL and DOR asking for info on where to find the tally for qualified cars to date. Got an answer back from DOR within about a day saying to check with DOL. So figured I'd give the DOL a bit longer then go into a licensing office and see if they can look it up (but highly doubt they will know where that info is kept).

 

[ChadS]

About two weeks ago somebody (not a DOL employee, but a trustworthy local advocate that I assume talked to one) told me we were just about halfway through the money.

But, I didn't get any links or details, so take that for what it is worth.

 

[MikeBur]

Great, thank both. Will run with Chad's answer until corrected

 

[iwannam3]

I called our local State Tax office and asked about the 7,500 number of sales tax exemption limit. She was unaware of the limit and claimed there was no limit!??! I will call another office to see what they say.

 

[iwannam3]

The more I talked to the State the more confused I get! Revenue told me the exemption applies per dealer?! So if Chevy has 10 dealerships they each get 7,500 for a total of 75,000!? Since Tesla sells direct they would only get 7,500?! I don't read that in the law RCW 82.08.809: Exemptions—Vehicles using clean alternative fuels and electric vehicles, exceptions—Quarterly transfers. (Contingent expiration date.) line 7(b). They sent me to licensing who tells revenue how many exemptions have been used. Licensing sends me to this page http://www.westcoastgreenhighway.com/pdfs/PEVSummaryJune2016.pdf
And says there are 17,000+ as of June 2016 so there is no sales tax exemptions left!?! Licensing sent me back to Revenue!?

I am more confused than ever.