Model Y (LR) tax incentive?

[steph746]

Hello,

I've been reading reports that say the Model Y (LR) both does and does not qualify for the newly adopted tax incentives for EVs.

I placed my order in March of this year.

Can anyone confirm if the Model Y LR qualifies for the $7,500 tax incentive? If it does, would the delivery have to be before December 31, 2022?


Thanks in advance...

 

[nate704]

Come back when the bill passes (please correct me if it already passed), and everyone will know which one will be qualified.

 

[steph746]

I believe it passed.

 

[MelsM3P]

it passed on the 16th of Aug

 

[TesWhisperer]

The bill passed - there are a couple of requirements that are different than the previous credit. The final assembly needs to be in the US (which tesla is manufactured in the US ), and eventually there is a battery mineral sourcing requirement as well.

When the bill passed on Aug 16th, the US manufacturing requirement went into effect immediately. That means certain EV cars that previously qualified for the credit that weren't made in the US, is now disqualified immediately. However, if you have placed an order already, that manufacturing requirement does not apply and you can claim the old credit.

The new credit, which has no cap like the old EV credit, goes into effect in Jan 1st 2023. The new tax credit is $7,500. This means you would need to take delivery in 2023 to qualify. Any delivery before 2023 falls under the stipulation above, as well as the old credit, which Tesla does not qualify for since they've hit the old credit 200K cap. The new credit has additional stipulation as well, but the Model Y should qualify.

Bottom line: Take delivery in 2023, you get $7,500 credit. Before, you're out of luck as of now.

 

[TesWhisperer]

Oh. here is additional official resource if you want to read more about it

Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

 

[steph746]

Thanks very much for clarifying this.

My estimated delivery falls from December 3, 2022 to January 14th. I know things can change, but if the vehicle is available at the end of 2022, I can defer delivery only once for 30 days?

 

[davraker]

This may have been clarified more recently, but I believe the designation of the MY as an SUV is critical in determining if the tax incentive applies. If it is, then it will fall under the cost cap. If no, then it will not. Hope this helps.

 

[LBM4]

Bringing this thread back to life, since we all know that the MYLR qualifies for the tax credit. Unfortunately, my research has not given me an answer to this:

I ordered my MYLR in Jan (says that my order qualifies for the $7500 tax credit right on the order page.) But my delivery date is not until April 1 - May 17, which is after the March 2023 deadline the IRS has given. So, while I may have ordered during the qualification period, "delivery" won't be until after the deadline expires.

This seems to be a gray area and I can't find a definitive answer online. My best guess is that even if we order between now and March, WE WILL NOT get the $7500 tax credit, because delivery is after the deadline. Can anyone confirm this? Is there a Tesla number to call to get something in writing? Any help is appreciated. I'll likely cancel my order if the tax incentive is not valid and wait until 2024 to get the rebate immediately.

 

[thetuk]

Bringing this thread back to life, since we all know that the MYLR qualifies for the tax credit. Unfortunately, my research has not given me an answer to this:

I ordered my MYLR in Jan (says that my order qualifies for the $7500 tax credit right on the order page.) But my delivery date is not until April 1 - May 17, which is after the March 2023 deadline the IRS has given. So, while I may have ordered during the qualification period, "delivery" won't be until after the deadline expires.

This seems to be a gray area and I can't find a definitive answer online. My best guess is that even if we order between now and March, WE WILL NOT get the $7500 tax credit, because delivery is after the deadline. Can anyone confirm this? Is there a Tesla number to call to get something in writing? Any help is appreciated. I'll likely cancel my order if the tax incentive is not valid and wait until 2024 to get the rebate immediately.

My understanding is you have to take delivery by March to qualify for the tax credit. The thing is no one knows for sure when in March we have to take delivery by....we all think March 31. Also as we get closer to March, IRS may say deadline is March 31 for $7,500, extend it and keep the same $7,500, extend it and reduce the credit in half, etc. Who knows.....we are all waiting to hear more in the next few weeks. In the meantime, you can keep checking Tesla current inventory and exact config may pop up on the website and you can work with SA to secure that vehicle and take delivery to guarantee the tax credit.

 

[SpicyPaneer]

My delivery date is Feb 9 to March the since I ordered in mid Jan, if the car comes after March 9th and they change the $7500 credit to to half or none. I’ll probably cancel the wife’s Ofer and give her my 22 MYP and I’ll probably get a model S or another ICE larger vehicle.

 

[thetuk]

My delivery date is Feb 9 to March the since I ordered in mid Jan, if the car comes after March 9th and they change the $7500 credit to to half or none. I’ll probably cancel the wife’s Ofer and give her my 22 MYP and I’ll probably get a model S or another ICE larger vehicle.

I hope you get yours before the deadline. I am hoping to get mine (EDD 03/13-03/31) before the deadline as well.

 

[LBM4]

My understanding is you have to take delivery by March to qualify for the tax credit. The thing is no one knows for sure when in March we have to take delivery by....we all think March 31. Also as we get closer to March, IRS may say deadline is March 31 for $7,500, extend it and keep the same $7,500, extend it and reduce the credit in half, etc. Who knows.....we are all waiting to hear more in the next few weeks. In the meantime, you can keep checking Tesla current inventory and exact config may pop up on the website and you can work with SA to secure that vehicle and take delivery to guarantee the tax credit.

Thank you for the response. Seems to be on par with what I was thinking. Just sucks that my EDD went from Feb-Mar (thinking I was safe) to April 1-May 17. I'll def cancel if the IRS screws us on this in March. It would be cool if Tesla gave us the $7500 tax incentive off the price of the car, if the IRS does do away with it, but I know that's never gonna happen.

 

[Goobers]

I'll def cancel if the IRS screws us on this in March.

I get that this a valid reason to some, but it seems so unfortunate to be such a case.

I mean, I put this purchase in, knowing full well that I might not get the credit and even if I do, not be able to fully claim it. To me, the credit is a bonus, rather than a requirement.

My EDD is Apr 2 - May 14.

 

[LBM4]

I get that this a valid reason to some, but it seems so unfortunate to be such a case.

I mean, I put this purchase in, knowing full well that I might not get the credit and even if I do, not be able to fully claim it. To me, the credit is a bonus, rather than a requirement.

My EDD is Apr 2 - May 14.

Normally, I would agree with you, but when I place an order and I'm told that I qualify for a tax incentive and that my delivery date is Feb-Mar, I expect that is what I will get. Now, my order is pushed AND I will likely not get the tax incentive. Do you not see the problem with that? Very similar to bait and switch tactics that dealerships used to use back in the 70's and 80's.

 

[Goobers]

Theres no switching, it’s just plain delayed by demand… by all the folks just like you and me that want the recently price cut vehicle and tax incentive, that got their orders in before us and/or processed additional steps in a timely manner.

Just this forum alone shows the number of reservations skyrocketed after the price drop.

So, if that’s impossible to understand for you… don’t know what to tell you.

 

[sidewinder]

don't forget tesla is at least eligible for 3750. its the other 3750 that could be in jeopardy come march. i'm already prepared to lose the 3750 if the guideline comes before delivery.

 

[LBM4]

don't forget tesla is at least eligible for 3750. its the other 3750 that could be in jeopardy come march. i'm already prepared to lose the 3750 if the guideline comes before delivery.

Is that a guarantee? Cause right now, nothing seems to be certain. It appears to just be a wait and see what the IRS/gov't does come March.

 

[schen72]

I took delivery of my MYLR in Feb 2022. Does it qualify for anything? MSRP was $53990 when I ordered it in September 2021.

 

[Goobers]

I took delivery of my MYLR in Feb 2022. Does it qualify for anything? MSRP was $53990 when I ordered it in September 2021.

You'd have to dig around, but I doubt it.

Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

Under the pre-August 2022 rules, Tesla got disqualified because it hit the sales cap.