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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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EDIT to add, this also applies to used purchases
this is showing that Model Y and Model S can get sales tax exemption, i am confused now
The scam is using tax payers money for this nonsense that is polluting as much as ICE cars
Yet nobody is outraged that instead of using the funds for meaningful social programs we use it on EV cars . EV cars that cant tow, cant off road, cant give you the range for cross country trips.
You are just upset he is biting the hand that fed him and he doesnt pander to the left
And now he just rented his charging station to Ford. And he is selling EPA credits to big ones ( Mopar ) so they still make V8 ICE trucks. He is taking advantage of tools given to him by some that were too eager to push an agenda without a good planning
Like it or not he is playing a rigged game and he wins.
Literally no matter the amount of your withholding you get to use the same amount of the EV credit.
Withheld $0? Withheld $50,000? SAME value of the EV credit you're able to use.
Because withholding is irrelevant to that question.
Yuo don't even look at the withholding amount until after you've finished all the work/math on the 1040 related to the EV credit.
So bringing up withholding simply confuses people.... see again the dozen or two posts in this thread alone where that exact thing has confused people.
If you did, then take those out and see what the # is without refundable credits. Whatever higher # that is, up to $7500, you get that much of the EV credit.
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Your jacked up F150 go boom.
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Every new car sold in the US is charged a destination fee to the buyer as required by federal law.
I already cited part of the law that might explain it back on like page 2 or 3 of the thread... there's a couple of possible ways, but that's one of them (essentially the law allows you to average sourcing across all cars of a specific model made in the same factory-- and since the required % is only 40-50% this year it's possible for them to qualify for the full credit this way for a chunk of the year.)
Grossly false.
ICE cars catch on fire far more often than EVs.
And Hybrids, as always, are the worst of both worlds, catching on fire even more often than ICE.
The IRS gets their info from the car makers who all have to certify to the IRS what qualifies and how much-- so IRS has not updated the website yet to reflect the new info from Tesla
.
This, too, is wrong. A sedan over 55k gets nothing - it's a hard price cap.
There is no set of options that can put the RWD Model 3 above that cap (software options do not count toward the price for tax credit purposes federally)
Tesla adjusts prices multiple times a year to reflect various things- but sales continue to increase every quarter-- for years and years now.
If you're only able to find heavily optioned or marked up ones, perhaps not so much.
Your withholdings, and refund, aren't even considered until later on the tax form.
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True, it'll last longer.
Far fewer moving parts to fail, far less routine maintenance required (and that would lead to failures if neglected), lower TCO, electric motors far more reliable than gasoline engines and multi-speed transmissions, longer powertrain warranty, etc...
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Far fewer moving parts to fail, far less routine maintenance required (and that would lead to failures if neglected), lower TCO, electric motors far more reliable than gasoline engines and multi-speed transmissions, longer powertrain warranty, etc...
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