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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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From the CVRP website regarding the rebate limit:
"Individual and business applicants are not eligible to receive more than one CVRP rebate either via direct purchase and/or lease as of December 3, 2019. Applicants who have not already met their rebate limit prior to December 3, 2019, will be eligible for one additional rebate. Those that have already met their two-rebate limit will remain ineligible for an additional rebate. Individuals or businesses that have met the rebate limit with non-fuel cell vehicles may apply for one additional rebate for an eligible fuel cell vehicle. This fuel cell vehicle exception does not apply to Rebate Now applications."
I applied and received this rebate last year. If I apply again using my wife's name, would that be allowed? I'm not sure what they classify as 'applicant'.
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.
And they only recognize the monthly operating lease payments when it leases a vehicle, versus recognizing the full selling price up front for vehicles that are financed via 3rd party bank or bought outright.
They currently show debt of just under 1.7 billion on the Q1 result for current portion of debt/finance leasing.
And that's with only about 5% of vehicles being leased (versus the nearly 25% many legacy companies do)
Tesla hates holding debt on their books--- which is why nearly all their vehicle financing is farmed out to other banks while legacy all have HUGE financing divisions with insane amounts of debt sitting on the books backed by financed cars... but they can't outsource leasing as they want to retain ownership of the vehicle.
Maybe you don't, but it is a big country and not everyone is in SoCal. (That's where you are, right?)
https://www.kbb.com/car-advice/av...-per-year/
13,489 average per year in 2021. An average calculation is total miles / total vehicles, the number of vehicles on the road has dropped by a lot, probably because the supply for vehicles is so screwed by global issues.
https://www.bts.gov/content/us-vehicle-miles
2nd tab in the excel spreadsheet shows that we had 2.2m light vehicles on the road in 2019 and now we're at 2 million.
Fewer people are driving and theyre driving fewer miles.
And they only recognize the monthly operating lease payments when it leases a vehicle, versus recognizing the full selling price up front for vehicles that are financed via 3rd party bank or bought outright.
They currently show debt of just under 1.7 billion on the Q1 result for current portion of debt/finance leasing.
And that's with only about 5% of vehicles being leased (versus the nearly 25% many legacy companies do)
Tesla hates holding debt on their books--- which is why nearly all their vehicle financing is farmed out to other banks while legacy all have HUGE financing divisions with insane amounts of debt sitting on the books backed by financed cars... but they can't outsource leasing as they want to retain ownership of the vehicle.
It seems if what youre saying is true then buyouts would help them out a lot, because it would mean fewer leases on their books.
am i misunderstanding it? does tesla not get to use the $7500 tax credit currently on leases?
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It seems if what youre saying is true then buyouts would help them out a lot, because it would mean fewer leases on their books.
am i misunderstanding it? does tesla not get to use the $7500 tax credit currently on leases?
I'm saying they've kept leasing a VERY small part of their business (and OEM financing a zero part of it) because they did not want the capital outlays and debt on their books those things bring.
Even before this tax credit Tesla lease terms on the 3/Y were notoriously awful so they really only made sense if you had some other reason to be leasing (usually because you were a business owner and could write the lease expense off)--- Because Tesla was willing to offer leases but they'd prefer you buy the car- for the financial reasons I pointed out earlier.
They'd much rather get all the $ up front as immediate revenue than only get it as monthly payments and carry the car and its depreciation on the books for 3 years the whole time.
Now as you suggest, getting them back after 3 years fed Teslas used car business... which actually turned into a surprisingly great profit center the last couple of years as used car prices skyrocketed- but that's back to normal now so again no incentive to increase this aspect of the business.
And since sales continue to be excellent, there's no real need to pull the kind of demand lever that passing on the tax credit via leasing would cause.
Imagine how orders would skyrocket if you could get the $7500 credit regardless of income or with a much lower monthly payment?
We'd be back to 9-12 month backlogs on orders. Exactly what Tesla does NOT want.
If you don't care about ever taking a longer trip, don't care about fast charging speeds, don't care about performance, don't care about handling, and don't care about ADAS features, OTA updates, or long-term parts availability of a car ending production this year?
AND can actually find someone to sell you one as MSRP?
Sure.
https://electrek.co/2023/06/08/gm...connector/
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.
CVRP is post purchase. You're looking at the Clean Vehicle Grant program.
From the CVRP website regarding the rebate limit:
...
I applied and received this rebate last year. If I apply again using my wife's name, would that be allowed? I'm not sure what they classify as 'applicant'.
We'd be back to 9-12 month backlogs on orders. Exactly what Tesla does NOT want.
Uh... not sure where you were, but it wasn't a Tesla charger
Not so much I am saying it- Tesla has said it. Repeatedly.
They cited it as the reason they spiked prices so high last year- the order backlog was a problem.
They actually stopped taking orders entirely for the most popular Model 3 config because of how bad it got
If you find that ridiculous take it up with Tesla- they're the ones who said it over and over and walked the walk proving it.
I'm saying they've kept leasing a VERY small part of their business (and OEM financing a zero part of it) because they did not want the capital outlays and debt on their books those things bring.
Even before this tax credit Tesla lease terms on the 3/Y were notoriously awful so they really only made sense if you had some other reason to be leasing (usually because you were a business owner and could write the lease expense off)--- Because Tesla was willing to offer leases but they'd prefer you buy the car- for the financial reasons I pointed out earlier.
They'd much rather get all the $ up front as immediate revenue than only get it as monthly payments and carry the car and its depreciation on the books for 3 years the whole time.
Now as you suggest, getting them back after 3 years fed Teslas used car business... which actually turned into a surprisingly great profit center the last couple of years as used car prices skyrocketed- but that's back to normal now so again no incentive to increase this aspect of the business.
And since sales continue to be excellent, there's no real need to pull the kind of demand lever that passing on the tax credit via leasing would cause.
Imagine how orders would skyrocket if you could get the $7500 credit regardless of income or with a much lower monthly payment?
We'd be back to 9-12 month backlogs on orders. Exactly what Tesla does NOT want.
If you don't care about ever taking a longer trip, don't care about fast charging speeds, don't care about performance, don't care about handling, and don't care about ADAS features, OTA updates, or long-term parts availability of a car ending production this year?
AND can actually find someone to sell you one as MSRP?
Sure.
i have tesla shares as about 5% of my portfolio for full disclosure: the $7500 sounds like its basically not means tested at all and just a fat check from the government. I dont really believe what you say is true about tesla not wanting demand. Demand is not keeping up with teslas ever increasing weekly output, thats why theyre giving an instant discount on new inventory to $37,820. thats just way way too low in 2023 when inflation is nuts.
If they had the lease buyout option with a $5000 discount (instead of $7500) then you would never see a $37,820 on that inventory and they could restore it to $40,240.
There so many people i know in tech over the income limit who would pull the trigger on that tomorrow. This is the government handing out $7500 like candy, this is not a tax credit. As a shareholder it simply doesnt make sense why they would sell a single car at discount when they can be taking advantage of this crazy good loophole.
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