-----
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.
--------------
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
-------------
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.
----------------
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.
This post can be edited by most users to provide up-to-date information about developments of this thread based on user responses, and user findings. Feel free to add, change or remove information shown here as it becomes available. This includes new coupons, rebates, ideas, thread summary, and similar items.
Once a Thread Wiki is added to a thread, "Create Wiki" button will disappear. If you would like to learn more about Thread Wiki feature, click here.
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.
Join The Conversation
Share your experience with the Slickdeals community
Share information with the community. Please follow our Community Guidelines and be kind!
1.8K Comments
Sign up for a Slickdeals account to remove this ad.
Find a third party leasing company that will pass through the credit. Leasing avoids the income limits.
Our community has rated this post as helpful. If you agree, why not thank StankNasty411
Your jacked up F150 go boom.
EV fires often occur while idle and are impossible to stop. The entire car becomes engulfed within seconds. Inside a garage, your house is in flames.
Not even in the same ballpark in magnitude. Most ICE car fires are minor; EV fires are exclusively catastrophic.
The overly simplified way to consider this is look at line 16 of the 1040 without any non-refundable credits considered yet... That is your initial tax burden.
You can reduce that amount, dollar for dollar, for all non-refundable credits available including the $7500 EV credit and the $400 non-refundable part of any CTC you qualify for.
If you get to 0 and still have non-refundable credits, you lose the overage but all refundable credits become the start of your refund amount.
If you still aren't at 0 you can now reduce that amount, dollar for dollar, for all refundable credits.
If you get to 0 and still have refundable credits you DO NOT lose that overage- it becomes the initial amount of your refund.
THEN, and ONLY THEN, would you look at your withholdings at all
If you were already at 0 with the above then you take your total withholdings and add 100% of it to your refund
OR
If you never reached 0 after all those credits, you reduce the remaining tax burden dollar for dollar until you reach 0 any remaining withholdings is your refund.
If you STILL don't hit 0 by the end of withholdings, that's your tax bill.
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 updated info from Tesla about them qualifying was published on 6/2.
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)
The last price change on the base Model 3 was actually a $250 increase
Tesla adjusts prices multiple times a year to reflect various things- but sales continue to increase every quarter-- for years and years now.
From the bolt thread currently going on it appears it is....very challenging...to find a base model Bolt that doesn't have 10k or more of dealer markup.... If you ARE able to find one (and you're ok with the base model) then the price difference is worth considering.
If you're only able to find heavily optioned or marked up ones, perhaps not so much.
Outright false-- debunked not just by EPA testing but owners right here in the thread (and tons of other places)
Your refund is not informative. Look at line 16 of your 1040. Whatever that number is, the $7500 EV credit reduces it dollar for dollar until you run out of credit or you hit 0. If you have any OTHER non-refundable credits those would do the same.... and if you hit 0 and still have non-refundable credit left over then you lose the remainder.
Your withholdings, and refund, aren't even considered until later on the tax form.
EVs catch fire when idle; ICE occur in the engine bay while operating. Most ICE fires are minor and contained to the engine bay; EV fires are always catastrophic.
The worst part with EV fires is when they occur inside a garage, your house is going with it. And they are uncontrollable. An ICE fire occurs while operating, in other words while you're driving. So the worst loss is the vehicle itself. And an ICE fire you will see smoke to which you pull over and escape. Go watch an EV fire. I have 3 kids. I'd lose 2 or all 3 if we had an EV fire. There's no way to get to them unbuckled in time. The entire car is engulfed in seconds. An ICE fire is no where near as intimidating. And it's contained to the front of the car, not underneath the passenger.
Sign up for a Slickdeals account to remove this ad.
It's non-refundable- but that has nothing to do with "how much you get back" every year.
Your refund is irrelevant.
Your withholdings are irrelevant.
Look at line 16 on your 1040. THAT is relevant.
On the other hand, I would be thrilled to see the full tax credit available again on the non-Performance 3, but according to the IRS, the credit is still $3,750. See here [fueleconomy.gov]. This is current as of 6/1, so unless something changed since yesterday (and there is no news supporting this), it sounds like an error.
Maybe read the actual words I wrote next time?
https://www.caranddrive
Spoiler- those are gasoline cars- not EVs.
https://www.thedrive.co
FACT: Gas cars catch on fire massively more often than EVs.
EV fires are in fact quite rare.
It's a nonsense FUD thing from anti-ev people.
Leasing companies can get the credit because the law explicitly makes an exception to the income limits for qualified leasing and for businesses.
(In theory you can ALSO get around the income limit if you have your own registered business and the business buys the car- but that's significantly more complex- speak to a CPA if you want to look into that route)
It's written into the law, an exemption for commercial vehicles. Ask your congressman or woman why that is the case. Better yet, if you are not satisfied with their job, vote for someone else to represent you next time.
Sign up for a Slickdeals account to remove this ad.
On the other hand, I would be thrilled to see the full tax credit available again on the non-Performance 3, but according to the IRS, the credit is still $3,750. See here [fueleconomy.gov]. This is current as of 6/1, so unless something changed since yesterday (and there is no news supporting this), it sounds like an error.
Join The Conversation
Share your experience with the Slickdeals community
Share information with the community. Please follow our Community Guidelines and be kind!