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To qualify for the federal tax credit, one must not exceed the following adjusted gross income limits:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
Federal EV Tax Credit is not refundable, which means one must have federal tax due to take advantage of it. If the tax due is less than the credit amount, one can only claim the credit up to the amount of the tax due.
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Here's how cheap you can get a new Model 3 RWD right now (including fed & local EV incentives):
• VT: $26,320
• MA: $26,830
• PA: $27,330
• MD: $27,330 - Delivered after July 1, 2023 https://marylandev.org/maryland-ev-tax-credit
• RI: $27,820
• DE: $27,820
• NY: $28,320
• CA: $28,330
• CO: $28,330
• CT: $29,030
• ME: $29,320
on top of above info federal, state and local incentive info that i posted , some employers are also providing ev incentive like exaple bank of america employees gets $5k incentive , in this case the best case scenario is like below
example scenario
• VT: $26,320 - $5000 bank of america employee ev incentive = $21,320
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CA CLEAN VEHICLE REBATE PROGRAM
$2K is available if your household makes <$200k.
There is an increased rebate of $7500 ($5500 on top of the $2k) available if you fall below income caps based on your household size.
Family of 4 max is $111k, Family of 6 is $149k.
This comes in the form of a check in 2-3 months. https://cleanvehiclereb
This is separate from the CARB Clean Vehicle Grants described below the dashes. It is possible to qualify for both, but the timing is different.
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And California residents that live in a disadvantage community (DAC) https://cleanvehiclegra
Disadvantaged communities are determined using CalEnviroScreen (https://oehha.ca.gov/calenviroscr...
here's the DAC map: https://oehha.ca.gov/calenviroscreen/sb535
And receive an Approval Letter through email.
You must receive an Approval Letter BEFORE you purchase a vehicle. We do not offer rebates and you cannot redeem a grant if you have purchased a vehicle before being approved.
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Top Comments
https://www.tesla.com/model3/design
Deal is even sweeter if you live in a state with additional credits:
VT: $26,320
MA: $26,830
PA: $27,330
RI: $27,820
DE: $27,820
NY: $28,320
CA: $28,330
CO: $28,330
CT: $29,030
ME: $29,320
Full tax credit details below, but the following income limits apply:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
https://www.irs.gov/credits-deduc...3-or-after
Withholding is totally irrelevant to qualifying for the credit.
If you're unclear on this go read a 1040.
The part where you compute tax liability is lines 16 through 24.
THAT is where the $7500 EV credit comes off.
Your withholdings aren't even looked at until after that on line 25+
This is also not correct.
The Child Tax Credit is worth a maximum of $2,000 per qualifying child. Up to $1,600 is refundable for the 2023 tax year.
Refundable credits are computed AFTER non-refundable ones-- so the CTC is only "worth" $400 off your tax burden for these purposes- the $1600 left is refundable.
Thus if you had say $7900 in tax burden and one CTC and one EV credit, your tax burden would go to $0 and you'd get a full refund of the $1600 refundable part of the CTC
Source:
https://www.nerdwallet.
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1.8K Comments
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Side note, Tesla is not sitting comfortably. All the big car companies aren't idle, new battery tech by Korea and China will be HUGE, and China's EV about to ramp up the world over will be epic.
Buy the car you NEED and want. Do NOT get rid of your ICE car just because. You don't get rich making a 30k purchase just because. In a few years, many will regret abandoning their perfectly good ice cars. HOLD ON TO THEM if you can.
$6,000
Full Self-Driving Capability
$15,000
that should be included with the car..
For example, last year you had a federal tax liability of $10,000 and already paid $15,000 in tax withholding, then you received $5000 as a refund. Let's say when you file your tax return next year and have the same withholding and tax liability, then you will received $5000 + $7500 tax credit for a total of $12500 in refund. The key question to ask is whether or not you have any tax liability or paid any federal taxes. If someone who does not owe or pay any federal taxes, the credit will not apply. The government isn't going to give you $7500 in free money just because they want you to buy an EV. In the same example above where you have $10000 in tax liability and you only had $10,000 in withholding, you owe nothing when you file your tax return. However, if you purchase a qualifying EV like a Tesla, then you will receive $7500 in refund from the federal tax credit.
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Do you get a tax credit or not?
$6,000
Full Self-Driving Capability
$15,000
that should be included with the car..
For example, last year you had a federal tax liability of $10,000 and already paid $15,000 in tax withholding, then you received $5000 as a refund. Let's say when you file your tax return next year and have the same withholding and tax liability, then you will received $5000 + $7500 tax credit for a total of $12500 in refund. The key question to ask is whether or not you have any tax liability or paid any federal taxes. If someone who does not owe or pay any federal taxes, the credit will not apply. The government isn't going to give you $7500 in free money just because they want you to buy an EV. In the same example above where you have $10000 in tax liability and you only had $10,000 in withholding, you owe nothing when you file your tax return. However, if you purchase a qualifying EV like a Tesla, then you will receive $7500 in refund from the federal tax credit.
$6,000
Full Self-Driving Capability
$15,000
that should be included with the car..
For EAP, all you're getting is a couple party tricks that are mostly useless in real life (that is, auto parking/lane change and "smart" summon). What matters, auto lane keeping and traffic aware cruise control, in EAP is included in the base
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