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Little News From Tesla

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johnsnownw

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Made in USA said:
https://www.designnews.com/automotive-0/what-happens-if-ev-tax-credits-are-scrapped/176705319457769
Click to expand...

The $7500 tax credit hurts Tesla less than other autmoakers. One, most owners polled stated that the tax credit didn't factor into their purchase. After all, the average selling price is $100k+. Secondly, Tesla sells a whole lot of cars outside the US.

That doesn't mean that many Model 3 owners, in the US, weren't relying on the tax credit to make it affordable, but there will be plenty of sales in Europe, Canada, and China to sustain Model 3 sales. Of course, there are people like me who are getting one regardless of the tax credit.

The Model 3 is supposed to compete against premium sedans of similar price ranges. BEVs from other companies aren't trying to make their BEVs comparable to similarly priced vehicles in their own line up. That's why the interior of the Bolt doesn't match the interior of GM's other $40k vehicles, and the same for Nissan's LEAF and their other mid-$30k vehicles.

Lastly, it is unlikely that the federal EV tax credit will make it into the bill, but we'll have to wait and see how things shake out.
 
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RSchneider

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Here's how it works. A when a company (i.e. Tesla) has sold 200K vehicles, the $7,500 tax credit (100%) will continue to the end of the following quarter. The next two quarters, it becomes $3,750 (50%). The next two quarters after that it's $1,875 (25%). From the best I can tell, Tesla should hit 200K units by Q2 of 2018. If that would happen, then at the end of Q3, the $7,500 is done. It goes to $3,750 for Q4 and Q1 of 2019. Q2 and Q3 it goes to $1,875. Tax credit is $0 starting October 1, 2019 onward. GM is not far behind Tesla.

If you are looking for your own tax credit, cheap loan or grant while waiting for your Elio, then get replacement windows and doors for your home. You will get a tax credit no matter what but if you are below a certain level of a household income you can get a $15K grant (a grant is not a loan or tax credit) or if you make above that and can't get a loan, you can get a $20K 1% interest paid over 20 years. Prove that you need those items because of health issues, then a $7,500 grant. If you wonder why there are so many ads for window replacements, you can thank the US Govt. for that as if those subsidies went away, that industry would collapse. Since people don't get emotionally attached to their windows, it never makes it into the headlines. It does heavily favor the low income families.

Also, get a heat pump water heater, $300 tax credit. Forget about a complete new HVAC system using geothermal. That went away at the end of 2016 (it was actually designed to be phased out then).
 
Rob Croson

Rob Croson

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johnsnownw said:
That doesn't mean that many Model 3 owners, in the US, weren't relying on the tax credit to make it affordable, but there will be plenty of sales in Europe, Canada, and China to sustain Model 3 sales. Of course, there are people like me who are getting one regardless of the tax credit.
Click to expand...
Just for general info, not specifically aimed at you:
If you plan on using the EV tax credit to make the EV purchase affordable for your budget, make sure you educate yourself on how the tax credit works. You may be in for a rude shock when you are not eligible for anywhere near the full $7500 that most manufacturers and reviewers use to figure the "after tax credit" price. Most reviews, web sites, and guides to the EV tax credit focus on things like "Is this vehicle eligible" and "when will the credit expire", etc. They never tell you how to figure out how much of that $7500 you can actually claim.

This article goes into the basics:
https://cars.usnews.com/cars-trucks/how-does-the-electric-car-tax-credit-work

Essentially, the $7500 credit reduces your total tax liability. (This is essentially the amount of taxes you should have had to pay for the year, less any deductions/credits. compare this to how much you actually paid to determine your refund or how much you owe.) If your tax liability is less than $7500, you lose out on the rest. It cannot be carried over to the next year or deferred, or anything like that. Before you go car shopping, you can make a quick estimate by checking last year's tax return: for tax year 2016, Form 1040, line 47 is the amount of your total tax liability. That is the amount of the tax credit that you can claim. So if line 47 says "$2,000", then you can claim $2,000 of the EV tax credit. The other $5500 is lost.

This is a very good thing to check before you go EV shopping. If you don't, you could potentially find yourself paying thousands of dollars more than you thought you would, because you can't claim that full $7500 credit!
 
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johnsnownw

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Rob Croson said:
Just for general info, not specifically aimed at you:
If you plan on using the EV tax credit to make the EV purchase affordable for your budget, make sure you educate yourself on how the tax credit works. You may be in for a rude shock when you are not eligible for anywhere near the full $7500 that most manufacturers and reviewers use to figure the "after tax credit" price. Most reviews, web sites, and guides to the EV tax credit focus on things like "Is this vehicle eligible" and "when will the credit expire", etc. They never tell you how to figure out how much of that $7500 you can actually claim.

This article goes into the basics:
https://cars.usnews.com/cars-trucks/how-does-the-electric-car-tax-credit-work

Essentially, the $7500 credit reduces your total tax liability. (This is essentially the amount of taxes you should have had to pay for the year, less any deductions/credits. compare this to how much you actually paid to determine your refund or how much you owe.) If your tax liability is less than $7500, you lose out on the rest. It cannot be carried over to the next year or deferred, or anything like that. Before you go car shopping, you can make a quick estimate by checking last year's tax return: for tax year 2016, Form 1040, line 47 is the amount of your total tax liability. That is the amount of the tax credit that you can claim. So if line 47 says "$2,000", then you can claim $2,000 of the EV tax credit. The other $5500 is lost.

This is a very good thing to check before you go EV shopping. If you don't, you could potentially find yourself paying thousands of dollars more than you thought you would, because you can't claim that full $7500 credit!
Click to expand...

Indeed, I think I may have posted that very link on this site some time back. If your tax liability doesn't allow access to the $7500 credit, you can always lease...and the full credit will be factored into your payments (because the bank will qualify for the $7500 tax credit).
 
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