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wait for new 3 or get discounted inventory 3
- Thread starter tiejia_ev
- Start date
Highland may cause the price of the 2023 M3 go down assuming Highland is priced the same, but Europe and China suggest that Highland will have a price premium so I guess it depends on how much the premium is.
My understanding is that it's still a tax credit, it's just a tax credit that can be applied at the point of sale. If it turns out you aren't eligible for the tax credit, you may owe the taxes still. Not sure if they've issued the final guidance on this though.
Also interesting with regard to supply and demand is that the inventory, in my area at least, has evaporated.
As of today, not one single inventory M3 available.
Maybe another shipment will come or maybe production has slowed to a halt.
As of today, not one single inventory M3 available.
Maybe another shipment will come or maybe production has slowed to a halt.
E90alex
Active Member
It’s still a tax credit with the same eligibility requirements, but it’s just applied upfront at point of sale. When you file your taxes for the year they will claw that back if you don’t qualify.
Alex,
Are you in the tax field?
Are you confident the $7,500 credit/rebate will remain earning dependent?
I’m asking because we also have a $2,000 PA state rebate that may exhaust and thus require purchase sooner than later.
If federal program will remain income dependent, we may not wait for the POS change for our purchase.
Thank you Alex.
I’m not a tax expert, but, that 7500 tax credit is a result of inflation reduction act, so this treasury department is not going to change income requirements anytime soon
Yes, that’s what I expected as well but I read an automotive article suggesting that in 2024 the dealers can take the $7500 tax credit at the point-of-sale making income eligibility a non-issue.
I suspect that article was incorrect, but I do believe that’s the way it’s done on leases.
So, I am wondering if there is an answer within the tax code, or the inflation reduction act.
Right now, it seems the only people who qualify for the full credit of $7500 are people who earn between $75,000 in $150,000 per year.
Plenty of people earn less than $75,000 a year who could benefit from the tax credit, and help reduce reliance on fossil fuels in larger numbers.
Leases are totally different. They come under a totally different IRA provision.
If I were you, I would assume the tax credits are income dependent. We won't know until the IRS issues guidance but most articles I've read have said that it's unlikely the eligibility requirements for the tax credits will change. They are allowing dealers to give the credit at the POS only to reduce the friction of the process.
$150K is the limit only for a single filer etc.
www.irs.gov
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.
Tha_Ape
Active Member
Just remember, it's a slight gamble. Tesla could raise the price and knock it out of IRA contention (i doubt they'd do that, but it IS possible). They've spent a lot of time reducing components to make the car cheaper to make, newer =/= better.
On the other side, it's quite possible it gets cheaper AND better.
On the other side, it's quite possible it gets cheaper AND better.
Also depends on what version we’re talking about. The M3P is already very close to the IRA’s MSRP cap. But the LR and RWD could see big increases without exceeding $55k.
cdub
OG 2011 Leaf / 2023 Model Y LR
Knightshade
Well-Known Member
They require the buyers to certify he qualifies for the full credit. Then they take it up front.
When the buyer files their taxes the following spring they will reconcile if they actually qualified or not, and IRS will claw back- from the taxpayer- any $ they fronted to the dealership to which the buyer was not entitled.
The IRA language is pretty clear NOTHING about eligibility for the credit changes when it becomes a point of sale credit.
You need $7500 in federal tax liability to get the full credit... and you have just over $7500 in fed tax liability at $54,000 in taxable income on the current tables if single.... $65,900 taxable income filing married. Add back the standard deduction which most take and you're at $67,850 single and $93,600 married filing jointly for gross income.
If you're much under those #s in gross income should you really be buying a 50k new car right now anyway?
First, it ain’t a “50k new car.”
Inventory RWD came down to $36,220.
Second, why should someone earning $67k enjoy the tax credit but not someone who earns less than $57k?
How does that $10k discrepancy advance the state’s interest in lowering carbon footprints by putting more people into carbon neutral vehicles?
By “state”, I mean federal government.
And if it matters, I don’t qualify for the rebate because I earn too much.
And I have no problem with the ceiling.
It’s the floor (must earn at least $67k to secure $7,500 credit) I find problematic.
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It’s tax credit, so you only be credited in full if you pay more than 7500 in taxes.
It’s surprising how many people don’t understand that
I read and understood it is defined as a credit. It’s surprising how many people think they are smarter than everyone else because they keep repeating the same thing. Pat yourself on the back for that 1972.
Pennsylvania, like other states, has a rebate and it is available to people earning under $50k.
It’s not that complicated.
It’s surprising the federal legislation was written to exclude young college graduates and other folks who earn less than $67k.
E90alex
Active Member
People earning less can still claim the credit, but only up to their tax liability amount if it’s less than $7500. That’s a question for the government as to why it’s not a non-refundable credit for people with less tax burden.
But realistically for most people earning much below that amount, they are less likely able to comfortably afford a new car anyways, much less a Tesla or any EV which tends to be more expensive than a comparable ICE vehicle. I’m sure there’s some people that sacrifice other areas to make it work, but it’s not exactly the best financial decision.
Of course there’s outliers like retirees who have low income on paper but are living off savings and investments, etc. But someone otherwise working full time making less than $60k probably shouldn’t be buying $40k+ vehicles.
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