Waiting for Tax Credit to come back?

[saltsman]

I highly doubt other brands would help as means of skirting the system. Polestar and Volvo are still under the Volvo/Geely arm. Plug In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service talks about manufacturers.

It sure didn't help GM with Chevy + Cadillac with their EVs and PHEVs. They hit the limit and phaseout to $0 awhile ago. They can't just start selling a whole bunch of GMC, Cadillac and Buick (for exmaple) EVs/PHEV to get the full $7500 Federal tax credit on those or rebrand the Chevy Bolt as one of those...

Correct, the tax credit is by manufacturer not brand. The Chevrolet Volt and Cadillac ELR were both under the same GM numbers. Same with Volvo and Polestar as it is with Maserati and Chrysler. VW, Audi and Porsche all run up to the same cutoff. Tesla can create a thousand vehicle brands but it is still out of credits unless the law rewritten. I guess technically Tesla could be purchased by someone with credits left (e.g. Ford) and then it would reactivate, but I don't see that happening.

 

[imola.zhp]

I suppose. Who knows, maybe they’ll further devalue our cars again and do another price drop for Chanukah.

The tax credit is a double edge sword. If you buy a car with a tax credit the resell value is automatically reduced by the value of the federal tax credit as soon as you drive off the lot. With the 3 having one of the best resale values among any car, adding the tax credit break would hamper resale value. I am hoping for the same stellar resell value that you get with the three for our Y’s.

Besides Ford will need that tax break to sell the Mach E due to the fact that Tesla is a decade ahead of everyone else.

Resale is only an issue if you plan to sell the car. In my opinion, those that took advantage of the credit should have somehow been locked into owning the vehicle for X number of years. It would have weeded out those that didn't really need the credit at all.

If the tax rebate came back, it would have to be unlimited vehicles till such date in the future. If they do the 200k, it would last Tesla 1 year.

Perhaps they would change the perimeters where it ended (or started to phase out) at a certain year. 2025 for example.

I bought a Model 3 in 2018 just before the end of the $7,500 Fed tax credit and the $2,500 California tax credit.
However Tesla reduced the price the following quarter, so basically the 2019 was then sold at the same price than the 2018 after tax credit.

One possibility for getting a tax credit would be to create a separate brand, like Cyber, independent from Tesla, to sell the CyberTruck.
This is exactly what Polestar and Volvo are doing:

Nope, nope, nope, that is not what they are doing, that is not how it works, sorry.

I highly doubt other brands would help as means of skirting the system. Polestar and Volvo are still under the Volvo/Geely arm. Plug In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service talks about manufacturers.

It sure didn't help GM with Chevy + Cadillac with their EVs and PHEVs. They hit the limit and phaseout to $0 awhile ago. They can't just start selling a whole bunch of GMC, Cadillac and Buick (for exmaple) EVs/PHEV to get the full $7500 Federal tax credit on those or rebrand the Chevy Bolt as one of those...

Correct, the tax credit is by manufacturer not brand. The Chevrolet Volt and Cadillac ELR were both under the same GM numbers. Same with Volvo and Polestar as it is with Maserati and Chrysler. VW, Audi and Porsche all run up to the same cutoff. Tesla can create a thousand vehicle brands but it is still out of credits unless the law rewritten. I guess technically Tesla could be purchased by someone with credits left (e.g. Ford) and then it would reactivate, but I don't see that happening.

Bingo! Same for all brands, Volvo and Polestar are owned by the same parent company.

 

[TomServo]

First I received two $7500 federal tax credits when I bought our 2012 and 2103 Volt's and only got partial credit when we bought our 2017 Volt, it's my opinion that ANY taxpayer-funded credit should only apply to US manufacturers. Having said that I doubt we have the TAX revenue to support any future EV tax credit's given our current financial state of affairs.

 

[DaveORD]

First I received two $7500 federal tax credits when I bought our 2012 and 2103 Volt's and only got partial credit when we bought our 2017 Volt, it's my opinion that ANY taxpayer-funded credit should only apply to US manufacturers. Having said that I doubt we have the TAX revenue to support any future EV tax credit's given our current financial state of affairs.

Can I borrow your time machine? I need to purchase a few stocks and make a few adjustments... (2103 Volt?)

 

[theganjaguru]

Resale is only an issue if you plan to sell the car. In my opinion, those that took advantage of the credit should have somehow been locked into owning the vehicle for X number of years. It would have weeded out those that didn't really need the credit at all

Nope nopety nope. If some jerkoff slams into the back of you and the insurance totals you out, just how exactly does the insurance company calculate the value of your car? Resale. Value. Any car with a tax credit will have that factored into the check the insurance cuts you.

Fact is that there are people who have purchased an EV for the tax credit. Heck I was thinking about it with a Bolt given the steep discounts coupled with the tax credit. I just don’t need a second car that bad.

 

[OrbiterTI4]

As we all know now, Federal Tax credit for Tesla is long gone. This brings up interesting dilemma for some, myself included. While I'm sure tesla Model Y is superior than virtually all upcoming competitors, is it worth the extra cost?

I didn't see this noted - the federal tax credit is not refundable, so the purchaser must have at least $7500 of tax liability to be able to get the full $7500.

 

[hlin07]

I didn't see this noted - the federal tax credit is not refundable, so the purchaser must have at least $7500 of tax liability to be able to get the full $7500.

Good point, I did make an assumption that if anyone's in the market for a Tesla, chances are he/she's qualified for Fed tax credit.
I hope Tesla brings back the standard range model Y, not everyone needs the 300 miles range. I would be all over the SR model Y if it's available. The argument Musk used on 250 mile range is a little ridiculous considering the Model 3 had 250 mile SR+ until just couple weeks ago.

 

[imola.zhp]

Nope nopety nope. If some jerkoff slams into the back of you and the insurance totals you out, just how exactly does the insurance company calculate the value of your car? Resale. Value. Any car with a tax credit will have that factored into the check the insurance cuts you.

Fact is that there are people who have purchased an EV for the tax credit. Heck I was thinking about it with a Bolt given the steep discounts coupled with the tax credit. I just don’t need a second car that bad.

In that analogy $7500 comes off the cost of the vehicle on the front-end.

In reality you pay full price for the vehicle, not an adjusted amount, and you claim the tax credit on your taxes. Only have $5,000 in tax liability? You only get $5,000 back, use it or lose it.

Try again.

 

[theganjaguru]

In that analogy $7500 comes off the cost of the vehicle on the front-end.

In reality you pay full price for the vehicle, not an adjusted amount, and you claim the tax credit on your taxes. Only have $5,000 in tax liability? You only get $5,000 back, use it or lose it.

Try again.

Nah, no need to try again with someone who’s coming back with opinions rather than facts. Do some research. I can’t be bothered to do it for you. Aside from Tesla, EV resale value is worse than Ice that’s a fact. Facts > opinions.
I’ve already proven you incorrect once. Resale value matters.

 

[imola.zhp]

Nah, no need to try again with someone who’s coming back with opinions rather than facts. Do some research. I can’t be bothered to do it for you. Aside from Tesla, EV resale value is worse than Ice that’s a fact. Facts > opinions.
I’ve already proven you incorrect once. Resale value matters.

This isn’t a general EV site, this is a Tesla specific site, perhaps you are confused.

I’ve owned 4 non-Tesla EV’s, I understand how the tax credit works quite well.

In regards to TESLA, the $7500 tax credit being reinstated would have little affect on resale values.

 

[mcmcn]

Might be time to revive this thread...
Tesla to get access to $7,000 tax credit on 400,000 more electric cars in the US with new incentive reform - Electrek

If the GOV wasnt so slow getting things done I would probably wait, but I dont think I am going to wait around for this to 'maybe' happen. Also, they might at least make it retroactive for the year it gets passed? Speculation, but one can always hope!

 

[imola.zhp]

Might be time to revive this thread...
Tesla to get access to $7,000 tax credit on 400,000 more electric cars in the US with new incentive reform - Electrek

If the GOV wasnt so slow getting things done I would probably wait, but I dont think I am going to wait around for this to 'maybe' happen. Also, they might at least make it retroactive for the year it gets passed? Speculation, but one can always hope!

In the document it states no retroactive credits. Any vehicles sold between 200k and the date of passage are excluded, page 42 lines 9-22.

That doesn't mean it won't be modified before its passed, but in its current form, no retroactive credits.

 

[mcmcn]

In the document it states no retroactive credits. Any vehicles sold between 200k and the date of passage are excluded, page 42 lines 9-22.

That doesn't mean it won't be modified before its passed, but in its current form, no retroactive credits.

Great info, thanks! Where did you find the bill? My google-fu is not as strong as yours....

 

[imola.zhp]

Great info, thanks! Where did you find the bill? My google-fu is not as strong as yours....

Don't give me too much credit, it was shared in another group. I did find and read that particular section though, page 42, lines 9-22.

https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

 

[patmurphey]

Tesla customers will blow through this proposed tax credit this year, with around 500,000 projected production.

 

[origingalatic]

yes, for sure. More of a reason for other manufacturer to catch up. For those who said that's not fair to only benefit Tesla, remember the goal is to get more EV on the road, less ICE, it doesn't matter which manufacturer.

If customers wants Tesla, why should gov't limit them? If anything Republicans should proposed to remove the cap PER maker but maybe a CAP for all to consume. That will start a race for sure. But since Nancy Polesi's husband bought calls on TSLA, we may not see this bill get pass even if the Dems controls the house.

 

[imola.zhp]

Tesla customers will blow through this proposed tax credit this year, with around 500,000 projected production.

I believe your talking about global production. It won’t last long, but probably more than a year.

 

[hlin07]

man, if this tax credit comes back, I'm getting another Tesla. haha. And, there's ABSOLUTELY NO REASON anyone should choose a Camry or Accord Over Model 3 SR+, ok one exception, renters or people have difficulty charging at home.

 

[origingalatic]

I believe your talking about global production. It won’t last long, but probably more than a year.

With Texas, it won't be hard to reach 500k production for US market alone.

 

[davidlee]

i have a MYP on reserve, the 100$. if this tax credit passes, would you think that i need to make a new order or just continue with the existing order to claim the tax credit since its not retroactive.

thanks