Will Model X Qualify for Tax Credit in 2024? Or disqualified because of battery requirements?

[MortonGarrett]

Does anyone know if the Model X meets the battery guidelines that the federal government requires for a tax credit starting in 2024? Wondering if NOW is the best time to buy because of 1. New Price (under $80,000) & 2. Tax Credit Eligibility.

I understand that if the price increases, the credit would go away. Wondering specifically about battery eligibility related to the Critical Minerals & Battery Components Requirements set forth in the 2024 IRA

 

[SpicyPaneer]

Does anyone know if the Model X meets the battery guidelines that the federal government requires for a tax credit starting in 2024? Wondering if NOW is the best time to buy because of 1. New Price (under $80,000) & 2. Tax Credit Eligibility.

I understand that if the price increases, the credit would go away. Wondering specifically about battery eligibility related to the Critical Minerals & Battery Components Requirements set forth in the 2024 IRA

The battery has not changed far as I know. Only battery changes are for Model 3

 

[Saxman]

The battery has not changed far as I know. Only battery changes are for Model 3

@SpicyPaneer
BOTH Critical Minerals and Battery Components 2024 threshold percentages, have increased by 10%, from what was required in 2023.
Do you know if Tesla's current % requirements in 2023 are sufficient to STILL qualify to the new 10% increase for 2024?

 

[SpicyPaneer]

X

@SpicyPaneer
BOTH Critical Minerals and Battery Components 2024 threshold percentages, have increased by 10%, from what was required in 2023.
Do you know if Tesla's current % requirements in 2023 are sufficient to STILL qualify to the new 10% increase for 2024?

/X batteries are made in the USA. Only the 4360 or se model battery are coming from China. I’m not relying on the tax credit as I’m over the threshold on the X as I want the white interior vs black.

 

[Saxman]

X

/X batteries are made in the USA. Only the 4360 or se model battery are coming from China. I’m not relying on the tax credit as I’m over the threshold on the X as I want the white interior vs black.

@SpicyPaneer

That's great to hear about the X batteries made in the USA.

Black interior was not my preferred choice, but if I can get $7500 Federal & $5000 Colorado Tax Credit, I decided to bite the bullet and go with Black.

 

[mathnerd88]

@SpicyPaneer

That's great to hear about the X batteries made in the USA.

Black interior was not my preferred choice, but if I can get $7500 Federal & $5000 Colorado Tax Credit, I decided to bite the bullet and go with Black.

Just because the batteries are made in the USA doesn't mean that enough of the percentage of components are sourced from US friendly nations to qualify for the FULL tax credit in 2024.

 

[Saxman]

Just because the batteries are made in the USA doesn't mean that enough of the percentage of components are sourced from US friendly nations to qualify for the FULL tax credit in 2024.

@mathnerd88

Does anyone know what the actual percentage is of Tesla's X batteries & percent Critical materials they complied with in 2023? All they need to comply in 2024, is an additional 10% for each.

If for instance batteries components were 50% in North America in 2023, it's now 60 % in 2024.

 

[mathnerd88]

@mathnerd88

Does anyone know what the actual percentage is of Tesla's X batteries & percent Critical materials they complied with in 2023? All they need to comply in 2024, is an additional 10% for each.

If for instance batteries components were 50% in North America in 2023, it's now 60 % in 2024.

Nobody knows. But Tesla puts in their website that the tax credit is likely to be reduced in 2024 for the Model X. They make no such mention about reduction for the Model Y.

 

[SpicyPaneer]

Nobody knows. But Tesla puts in their website that the tax credit is likely to be reduced in 2024 for the Model X. They make no such mention about reduction for the Model Y.

That would be for the base X or ilea’s I doubt the Plaid would be under $80k.

 

[qwertyuio]

If I order now, but the delivery date is after 01/01/2024, will the rebate be based on 2023 rule or 2024 rule? Thanks.

 

[Saxman]

If I order now, but the delivery date is after 01/01/2024, will the rebate be based on 2023 rule or 2024 rule? Thanks.

@qwertyuio
My understanding about Tax Credit qualifications is based on when you take delivery, regardless of when you ordered.

I'm in the same situation, since I ordered September 30th. Not sure my delivery is in 2024, if my MXLR will qualify for credit. Hopefully if not Federal in 2024, I'll still qualify for Colorado.

 

[qwertyuio]

@qwertyuio
My understanding about Tax Credit qualifications is based on when you take delivery, regardless of when you ordered.

I'm in the same situation, since I ordered September 30th. Not sure my delivery is in 2024, if my MXLR will qualify for credit. Hopefully if not Federal in 2024, I'll still qualify for Colorado.

Thanks.

 

[eeee-meeee]

Anyone catch todays news about the 2024 ev fed tax credit? Something about percentage of components and minerals. Seems the percentage from US increased a bit. Will the various Tesla models qualify?

 

[kepstein]

Does anyone know if the Model X meets the battery guidelines that the federal government requires for a tax credit starting in 2024? Wondering if NOW is the best time to buy because of 1. New Price (under $80,000) & 2. Tax Credit Eligibility.

I understand that if the price increases, the credit would go away. Wondering specifically about battery eligibility related to the Critical Minerals & Battery Components Requirements set forth in the 2024 IRA

Hi Morton. I'm wondering if you have gotten the definitive answer to your question. My order is the same as yours, and when I placed the order, the projected delivery was Nov/Dec 2023. The order has since been updated to show delivery has slipped to 12/26/23 to Feb 2024, so I'm concerned that a late delivery will eliminate the tax credit that I'm relying on. It's impossible to get any answers from Tesla personnel, of course.

 

[TespaceX]

Hi Morton. I'm wondering if you have gotten the definitive answer to your question. My order is the same as yours, and when I placed the order, the projected delivery was Nov/Dec 2023. The order has since been updated to show delivery has slipped to 12/26/23 to Feb 2024, so I'm concerned that a late delivery will eliminate the tax credit that I'm relying on. It's impossible to get any answers from Tesla personnel, of course.

You don't even need to ask Tesla.

The federal tax credit is, and has been, based on date of taking delivery. Period. If you dont pick up your vehicle by end of day December 31, 2024, the tax credit eligibility for 2023 will not count.

Having said that, there have been news in the past week or two about the administration possibly relaxing some of the battery source requirements for next year. But, we probably wont get any definitive answers until sometime next year because the automakers have to submit their eligibility forms after learning of the new requirements.

 

[Unclepaul]

Looks like there will be some last minute changes to the Tax Credit in 2014. Will need to wait and see which cars are eligible.

 

[GeorgeCostanza]

I noticed that Tesla updated the Model 3 order page indicating that the tax incentive on Model 3 RWD and LR would be reduced to $3750 in 2024.

I may have missed it. Was there an update on the eligibility of the $79,990 Model X for the point-of-sale tax incentive in 2024? Thanks.

 

[BuddysX]

My delivery date is also Jan. For what it's worth, two separate long time Tesla vloggers this week have claimed that the X will qualify for the $7500 in 2024 because battery is not made or assembled in China. Tesla sales people should get something definitive on this soon as they will be taking the $7500 off at point of sale.

 

[GeorgeCostanza]

My delivery date is also Jan. For what it's worth, two separate long time Tesla vloggers this week have claimed that the X will qualify for the $7500 in 2024 because battery is not made or assembled in China. Tesla sales people should get something definitive on this soon as they will be taking the $7500 off at point of sale.

Though the vloggers may be right, but the criterion that is unclear to me is where the battery materials are sourced, not just where the battery is made/assembled.

 

[LVMY2022]

Though the vloggers may be right, but the criterion that is unclear to me is where the battery materials are sourced, not just where the battery is made/assembled.

Totally agree here, we don't know the exact details. I think we are better off with taking delivery this year just to be on the safe side.