How long will $7500 Incentive be around

broncophil · Oct 29, 2014

As stated in another thread, we already put the $5k down on the Model X. But with no delivery date, how do we guarantee we get the $7500 rebate?

Also I will be ordering my MODEL S, in 4 months (my lease is over in 6 months) So thats $15000 we need worry about.

shelbri · Oct 29, 2014

I believe the incentive is available to each of the manufacturers' first 200,000 cars (not positive that is the exact number) so you should be fine given that Tesla has only sold roughly 50k cars so far.

yobigd20 · Oct 29, 2014

shelbri said:
I believe the incentive is available to each of the manufacturers' first 200,000 cars (not positive that is the exact number) so you should be fine given that Tesla has only sold roughly 50k cars so far.

yeah its manufacturers' first 200,000 cars. so we're up to about 50k so far, probably ~56k through end of this year, next year another 40-50k , in 2016 probably around 70-80k. I think some time in mid to late 2017 is when they'll cross over the 200k mark.

Zaxxon · Oct 29, 2014

Also, as I mentioned elsewhere but am too lazy to track down now, it only counts US cars, doesn't disappear when 200k are hit, and takes several quarters to phase out once the process starts. It will be quite some time before Tesla buyers have to worry about getting less than $7500.

RandyS · Oct 29, 2014

Zaxxon said:
Also, as I mentioned elsewhere but am too lazy to track down now, it only counts US cars, doesn't disappear when 200k are hit, and takes several quarters to phase out once the process starts. It will be quite some time before Tesla buyers have to worry about getting less than $7500.

Unless the House/Senate pass a bill to get rid of the tax credit and a new President signs it....

Barry · Oct 29, 2014

RandyS said:
Unless the House/Senate pass a bill to get rid of the tax credit and a new President signs it....

The Charging Station credit went away...

eco5280 · Oct 29, 2014

Another reason to keep Congress blue - politics aside, red has a history of hating this industry and any gov't assistance in getting it off the ground.

Rebel44 · Oct 29, 2014

AFAIK that 200K only count cars sold in USA, so Tesla is currently much lower than 50K.

broncophil · Oct 29, 2014

Ok thanks everyone..i cannot wait

breser · Oct 29, 2014

Here is the explanation from the IRS as to how this phases out:

The new qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period.

So once Tesla has sold 200,000 vehicles for use in the United States and 6 months after the quarter they do so the credit will be $3,750 for 6 months and then $1,875 for 6 months. To give an example let's say that Tesla sells their 200,000 vehicle in the US in August 2017. The the following schedule would apply (please realize this is only a hypothetical example):

January 2010 - April 2018 = $7,500
May 2018 - September 2018 = $3,750
October 2018 - March 2018 = $1,875
April 2018 - ... = $0

So unless Congress changes something or Tesla seriously ramps up production the federal tax credit is going to be around for a long time.

yobigd20 · Oct 30, 2014

Zaxxon said:
it only counts US cars, doesn't disappear when 200k are hit

Rebel44 said:
AFAIK that 200K only count cars sold in USA, so Tesla is currently much lower than 50K.

I keep forgetting about that...but yeah you're both 100% right. only USA cars are counted towards that 200k.

TexasEV · Oct 30, 2014

Barry said:
The Charging Station credit went away...

That was different. When it was passed it had an expiration date, which I think was later extended to another expiration date. The $7500 EV tax credit doesn't have an expiration date, it phases out based on unit volume as described in another post.

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How long will $7500 Incentive be around

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