Tax Credit and Model Y delivery

[Bluelocust]

I ordered a MY this morning with a Jan 2023 - April 2023 delivery date. If the new climate bill gets passed this week (it’s looking good) I should be able to take advantage of the credit. My question is if the delivery date is moved forward - due to cancellation or others trying to adjust their delivery dates - can I postpone delivery? I have read many different scenarios but it seems they do allow several options. Does anyone have any experience with this?

On another note, I can see 4th quarter disruptions with the MY due to the credit. Wonder how Tesla will handle it??

 

[Bigriver]

I think the moment the legislation passes, there will be a lot of people wanting to delay delivery. Who wants to take delivery on a car that would cost them $7500 less in a few months. There are those who think it won’t be a big problem because there will be some who are happy to move to an early delivery despite missing the tax credit. I personally don’t know people who would snub their noses at $7500. My best guess is that Tesla would offer people who take delivery in 2022 something like discounted FSD for $5k, or EAP for free. Just my guess.

 

[pepperoni]

Yes, you can delay for 30 days.

 

[bayareaever]

I was told by Tesla store rep yesterday that you can delay until your original EDD, even if it’s more than 30 days. I don’t know if it’s true or not.

This will possibly be a major headache for them in q4. I guess they can shift to other models that don’t qualify for ftc or else export more to Canada or other countries.

I’m considering placing a MY order assuming price will continue to rise. Do we even know if it’s actually an suv according to the irs?

 

[bayareaever]

Also, what if options bring it over $80k. Would that matter for getting the credit?

 

[Bigriver]

Also, what if options bring it over $80k. Would that matter for getting the credit?

Yes, options matters. The car price has to stay under the max price set by the legislation.

 

[bayareaever]

Yes, options matters. The car price has to stay under the max price set by the legislation.

Good to know. Do you have the bill text to back that up? I know with cvrp (when Tesla still qualified) options didn’t matter.

 

[Bigriver]

Good to know. Do you have the bill text to back that up? I know with cvrp (when Tesla still qualified) options didn’t matter.

The current federal tax credit, for which Tesla no longer qualifies, has no limit on the price. The current proposed legislation has many limitations, including price of vehicle, AGI of tax payer, where the vehicle is manufactured, where the battery materials are sourced. The vehicle price is the manufacturer retail price.

A link to a pdf of the proposed legislation is in this article:

Read the full text of the deal that Manchin and Schumer just struck to curb inflation, tax corporations, and fight climate change

The agreement breaks a stalemate on Biden's agenda that lasted for nearly a year. It will include climate programs and tax hikes on corporations.

www.businessinsider.com

Here is the part about the vehicle price:

 

[rwiegand]

Do current Teslas actually meet the battery composition requirements of the law as it is likely to pass?

 

[Unclepaul]

Tesla will most likely modify their pricing to come in under the limits for the base vehicle. Add a separate charge for long range battery, performance pack etc. They are bright people.

 

[Senpai]

I believe those number are before taxes, a build like mine comes in at $77,440.00. (OD 04/2022, before that last hike)

 

[RoBoRaT]

I ordered a MY this morning with a Jan 2023 - April 2023 delivery date. If the new climate bill gets passed this week (it’s looking good) I should be able to take advantage of the credit. My question is if the delivery date is moved forward - due to cancellation or others trying to adjust their delivery dates - can I postpone delivery? I have read many different scenarios but it seems they do allow several options. Does anyone have any experience with this?

On another note, I can see 4th quarter disruptions with the MY due to the credit. Wonder how Tesla will handle it??

What's in your Order Agreement?

 

[adigwe98]

A friend of mine is thinking about placing an order for the MYLR now or wait until January.

He is trying to figure out if he qualifies for this $7k tax credit because he has two jobs where he pulls in at least $255k with both jobs combined. Can someone help answer that question because I don't want to give him the wrong answer. Figure there are some smart people here that fully understand the bill they are about to pass.

 

[jjrandorin]

On another note, I can see 4th quarter disruptions with the MY due to the credit. Wonder how Tesla will handle it??

Likely in a similar way that they handled it last year when everyone started coming up with "reasons" on why they could not take delivery of ordered cars before the end of the year. They instituted a policy to cancel orders after one delay.

I have no inside knowledge on this, but expect them to get VERY aggressive with canceling orders, and not accept basically "any" reason someone might come up with on why they cant take delivery, no matter how reasonable or true it is.

Regardless of what delivery date one has now, expect it to move up as people get their orders cancelled, etc.

 

[rwiegand]

A friend of mine is thinking about placing an order for the MYLR now or wait until January.

He is trying to figure out if he qualifies for this $7k tax credit because he has two jobs where he pulls in at least $255k with both jobs combined. Can someone help answer that question because I don't want to give him the wrong answer. Figure there are some smart people here that fully understand the bill they are about to pass.

In almost all cases it is the AGI on your prior year return that determines eligibility for income-based benefits. From the IRS: "Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Adjustments to Income include such items as Educator expenses, Student loan interest, Alimony payments or contributions to a retirement account. Your AGI will never be more than your Gross Total Income on you return and in some cases may be lower."

 

[Bluelocust]

What's in your Order Agreement?

I have up to 3o days to take delivery or Tesla may cancel my order and keep the deposit fee. I have quoted it below:

Delivery; Transfer of Title. If you are picking up your Vehicle in a state where we are licensed to sell the Vehicle, we will notify you of when we expect your Vehicle to be ready for delivery at your local Tesla Delivery Center, or other location as we may agree to. You agree to schedule and take delivery of your Vehicle within three (3) days of this date. If you do not respond to our notification or are unable to take delivery within the specified period, your Vehicle may be made available for sale to other customers. For new vehicles, if you do not take delivery within thirty (30) days of our first attempt to notify you, Tesla may cancel your order and keep your Order Fee.

Given that, I should be ok. I mean you never know but given the backlog of orders, I don't see an ealier date then January. Of course, now that I have said that I'll be the first one to get my order filled...

 

[RoBoRaT]

I have up to 3o days to take delivery or Tesla may cancel my order and keep the deposit fee. I have quoted it below:

Delivery; Transfer of Title. If you are picking up your Vehicle in a state where we are licensed to sell the Vehicle, we will notify you of when we expect your Vehicle to be ready for delivery at your local Tesla Delivery Center, or other location as we may agree to. You agree to schedule and take delivery of your Vehicle within three (3) days of this date. If you do not respond to our notification or are unable to take delivery within the specified period, your Vehicle may be made available for sale to other customers. For new vehicles, if you do not take delivery within thirty (30) days of our first attempt to notify you, Tesla may cancel your order and keep your Order Fee.

Given that, I should be ok. I mean you never know but given the backlog of orders, I don't see an ealier date then January. Of course, now that I have said that I'll be the first one to get my order filled...

There you go.

Elon's minions are among us in this forum (j/k) - and now that they know you might delay up to 30 days, will VIN you December 1st.

Circle back and let us know.

 

[VegasMYP]

I think the moment the legislation passes, there will be a lot of people wanting to delay delivery. Who wants to take delivery on a car that would cost them $7500 less in a few months. There are those who think it won’t be a big problem because there will be some who are happy to move to an early delivery despite missing the tax credit. I personally don’t know people who would snub their noses at $7500. My best guess is that Tesla would offer people who take delivery in 2022 something like discounted FSD for $5k, or EAP for free. Just my guess.

I am thinking that maybe some people based on their tax liability position, may not be able to take advantage of any tax credits .

 

[pepperoni]

I am thinking that maybe some people based on their tax liability position, may not be able to take advantage of any tax credits .

Agreed, a significant portion of Tesla buyers will not meet the MAGI limits. Tesla’s incessant price increases have assured that.

 

[AndrewZ]

Nobody even knows whether or what vehicles will qualify under the tax bill, the Congressional Budget Office estimated there would only be a max of around 11,000 vehicle sales claiming the tax in 2023.

Source: U.S. Congress office sees few tax breaks for EVs under Democratic plan

The raw mineral sourcing and assembly requirements are quite onerous to start and gradually build up in severity with each year, the whole intent is to move us away from dependence on China for the EV supply chain particularly in battery minerals and manufacturing. China controls dang near the entire supply chain right now.