Why this disclaimer and reference to March 2023 for the $7500 tax credit?

[coupedncal]

Any ideas why Tesla site has this disclaimer when you try to build out a model? What is gong to change in March 2023?

 

[Magnus0322]

The gubiment set the tax credit per component. I believe $3750 in March applies to the battery pack having to be made in USA and unless something changes most EVs will have half the credit drop off come March 2023.

 

[Ogre]

Any ideas why Tesla site has this disclaimer when you try to build out a model? What is gong to change in March 2023?

View attachment 895310

The IRS didn’t have their final guidelines ready when the first of the year rolled around so they established some temporary guidelines at the very last minute. Which vehicles qualify and how big the rebate is will change after March. Exactly how much the rebate will be for each vehicle will shift.

The Model 3 SR I think might get a smaller incentive. I think the Model Y will be safe, but considering the slant the IRS has taken, maybe that will shift too.

 

[E46M3]

Does this take effect comes 3/1 or 4/1?

 

[holmesm1]

Any ideas why Tesla site has this disclaimer when you try to build out a model? What is gong to change in March 2023?

View attachment 895310

From the IRS Fact Sheet: FS-2022-42, December 2022 - Source: https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

Q4. Do the new critical mineral and battery componentsrequirements apply? (added December 29, 2022) A4. Not yet. The critical mineral and battery component requirements under § 30D(e) will apply for vehicles placed in service after proposed guidance on these requirements is issued. The publication of these FAQs is not the issuance of proposed guidance with respect to the critical mineral and battery component requirements under § 30D(e) and does not trigger the applicability of those requirements. The Treasury Department and the IRS will explicitly identify when they have issued proposed guidance with respect to the critical mineral and battery component requirements under § 30D(e). However, vehicles ordered or purchased prior to but placed in service after Treasury and the IRS issue this proposed guidance will be subject to the critical mineral and battery component requirements. This proposed guidance is expected to be issued in March 2023.

So it seems that if you put the car in service before the proposed guidance (scheduled sometime in March 2023) you don't have to meet the battery requirement. From Nerd Wallet - Source: EV Tax Credit: How It Works, What Qualifies - NerdWallet

Battery requirement: To be eligible for the battery portion of the credit (up to $3,750), a certain percentage of the vehicle’s battery must be assembled or manufactured within North America. The percentage thresholds will be as follows:

• 2023: 50%

 

[king12yan]

Does any have an idea of when in March? My delivery date was pushed out to 3/1-3/29. I was happy at first that it was still in March thinking we have until the end of March. But then realized that everything just says March on the credit jargon which could be the 1st or really any day. Now I'm worried again I will either miss the credit or it will be half. I ordered it 1/17 which I had thought would be enough time.

 

[Ogre]

Nope.

IRS is either clueless and scrambling to put this together at the last minute, or doing their best at giving the public that’s the case.

 

[holmesm1]

Some hope for full credit after March, IF (AND THAT'S A BIG IF) ...
Tesla has been manufacturing their own batteries for a while and sourcing some lithium from Nevada, so there is some hope for a full credit. What we don't know is will Tesla have enough of the battery made in North America (probably?) and will the critical materials be at least 40% (in 2023) extracted or processed within the U.S. or within a country with whom the U.S. has a free-trade agreement.

Battery requirement: To be eligible for the battery portion of the credit (up to $3,750), a certain percentage of the vehicle’s battery must be assembled or manufactured within North America. The percentage thresholds will be as follows:

• 2023: 50%
• 2024: 60%
• 2025: 60%
• 2026: 70%
• 2027: 80%
• 2028: 90%
• 2029 through 2032: 100%

Critical minerals requirement: Cars must meet a "critical minerals requirement" to receive the remaining $3,750 portion of the credit. This requirement stipulates that a certain percentage of critical minerals in the car's battery must be extracted or processed within the U.S. or within a country with whom the U.S. has a free-trade agreement. The percentage thresholds will be as follows:

• 2023: 40%
• 2024: 50%
• 2025: 60%
• 2026: 70%
• 2027 through 2032: 80%

Beginning in 2024, vehicles may also not source battery parts from a foreign country of concern (e.g., China). And starting in 2025, EVs cannot contain any critical minerals sourced from a foreign country of concern.

Nerd Wallet - Source: EV Tax Credit: How It Works, What Qualifies - NerdWallet