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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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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.
1,792 Comments
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for someone to get the full cvrp 7.5k, one has to be in the 400% 2022 federal poverty level. https://aspe.hhs.gov/topics/pover...guideli
Fed EV is up to $7500 so that means you have to owe taxes.
also, you need to live in a disadvantage community.
this is for the cvrp assisted grant https://cleanvehiclegra
the Fed ev is a non refundable rebate. It takes your taxes you owe (tax liability is lines 16 through 24) and deduct from there. which brings you down to zero. Now if you withheld taxes for that year, you get that back too.
I spoke to my CPA and there's no way one can get both full 7500 from fed and cvrp. that's bs in your post.
most average ppl that have reg salary jobs 20-30 an hr will have pay about 5-7k in taxes a year would only get pretty close to $7500 and the 2k from cvrp.
if you have family/relatives/roommates who dont work who live with you (or get minimum wage at a part time job) then its very easy to get most of the federal tax credit
https://cleanvehiclereb
scroll down to "do you qualify?"
for someone to get the full cvrp 7.5k, one has to be in the 400% 2022 federal poverty level. https://aspe.hhs.gov/topics/pover...guideli
Fed EV is up to $7500 so that means you have to owe taxes to get the full amount.
also, you need to live in a disadvantage community.
this is for the cvrp assisted grant https://cleanvehiclegra
ppl that make under 30k will use standard deduction $3500 rate.
the Fed ev is a non refundable rebate. It takes your taxes you owe (tax liability is lines 16 through 24) and deduct from there. which brings you down to zero. Now if you withheld taxes for that year, you get that back too.
I spoke to my CPA and there's no way one can get both full 7500 from fed and cvrp. that's bs in your post.
most average ppl that have reg salary jobs 20-30 an hr will have pay about 7k in taxes a year would only get pretty close to $7500 and the 2k from cvrp.
anyone that gets higher salary will get less from the fed ev and the 2k.
It's pretty simple.
Everyone running to get the tesla think it's a flat rebate. wrong!
They're going to get a rude awaking next year when they try to file their taxes.
So first, if the poverty level is 30k then 400% is...120k.
And you'd definitely owe taxes. More than $7500 worth in fact.
You can absolutely get both.
The CVRP one the income limit gets higher the more kids you have.
You can't get the full one both state and fed if you're single, but with 2-3 kids the overlap in income that fits both the state and fed rebates gets, if not large, at least existant.
Its not hard to receive the benefit of the full federal $7,500 credit, which assumedly you should have as a minimum tax liability if you are looking at a brand new Tesla.
As for state specific ones like California, do your research and do not rely on some of these replies for accurate information.
The battery warranty is not 8 years with unlimited miles, it is 8 years OR 100K miles, WHICHEVER COMES FIRST
So it is completely possible with a little above average miles per year to exceed the warranty in 5 years and be on the hook for the battery.
Just be honest if Tesa is all you say it is, unless it's not
20000 miles a year is a ton...I know exactly one person who drives that much. And with more and more people WFH, that 14000 figure is probably going down.
I've leased cars with 10K/12K annually...never been over in over 20 leases. Once I had a whopping 13K after three years....that was a pricey lease!
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That is a crazy loophole for that to have no income limit. Tesla must know about it, perhaps their contract lawyers are re-writing the lease agreement to allow it to have buyout again. I dont know why they took buyouts away in the first place so its hard to say what happened there
That is a crazy loophole for that to have no income limit. Tesla must know about it, perhaps their contract lawyers are re-writing the lease agreement to allow it to have buyout again. I dont know why they took buyouts away in the first place so its hard to say what happened there
They did for a while on S/X, but those don't qualify for the credits anyway.
Tesla has no motivation to do the lease loophole so long as they've got plenty of buyers, which they still do.... leasing requires financing work from the car maker and has never been a major part of the business.
20000 miles a year is a ton...I know exactly one person who drives that much. And with more and more people WFH, that 14000 figure is probably going down.
I've leased cars with 10K/12K annually...never been over in over 20 leases. Once I had a whopping 13K after three years....that was a pricey lease!
Maybe you don't, but it is a big country and not everyone is in SoCal. (That's where you are, right?)
https://www.msn.com/en-us/autos/news/tesla-model-3-is-nearly-a-20k-car-in-california/ar-AA1cfWjc?oci... [msn.com]
And you'd definitely owe taxes. More than $7500 worth in fact.
You can absolutely get both.
The CVRP one the income limit gets higher the more kids you have.
You can't get the full one both state and fed if you're single, but with 2-3 kids the overlap in income that fits both the state and fed rebates gets, if not large, at least existant.
Would still need to jump some hurdles. disadvantage community (DAC) and approval letter.
Once you get to that point (which I read takes min of 10 days), you have 90 days to apply that credit to an approved dealership and the car has to be picked up/driven within that 90 day.
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What does that have to do with 100% tax
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