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Federal Tax Credit

Discussion in 'Reserving, Ordering, Production, Delivery' started by Soto, Jan 11, 2017.

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  1. Soto

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    I'm evaluating the possibility of getting Model S. What's our time frame for the $7500 federal tax credit? Is it still in full effect or are we in the phase out period?
    I'm confused if the program adds S and X together for this credit or is it S separate and X separate for the 200,000 phase out trigger.
    Secondly, does anyone have a projection of when the phase out might begin if it didn't already?

    An FYI, NJ currently offers sales tax exempt on EV's. :)

    This is not about the Model 3. I want to concentrate on Model S in particular.

    Thanks
     
  2. MelindaV

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    Tesla just passed their sale of 100k US cars, so you have about a year before the credit begins to be phased out. It doesn't matter which vehicle model, it's by manufacturer.

    ETA: that is assuming the new congress doesn't revoke the existing law
     
  3. Soto

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    Oh, 100k is the trigger? So that means Model 3 is also in jeopardy. Then they'd better pump out as many cars as they can this year, and all models! Yikes!
     
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    • MelindaV

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      no, 200k is the start of the closeout of the credit. They CURRENTLY just sold their 100k-th
       
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      • Soto

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        OMG! I think NJ no longer gives sales tax exemption on Teslas! Oh noooooo! Tesla's website shows as exempt, but on the NJ Division of taxation website I no longer see Tesla listed.
         
      • Soto

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        I got confirmation from Tesla that NJ does not charge for sales tax. I'm not sure why the NJ Division of Tax website took off Tesla from the pdf and lists that cars under $35.000.00 are exempt. Perhaps it's a new law that hasn't taken effect yet. But at least it's good to see that the sales tax is not charged. I'm not sure what will happen by the end of the year if we can be lucky enough to take the Federal tax credit as well as save on sales tax. Fingers crossed.
         
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        • patrick0101

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          • garsh

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            Looks like a pretty good article.

            TLDR: Deliveries before Sept 30 2018 will probably all get full incentive.

            Aside: I SO want to get a vinyl grill like in your avatar.
            [​IMG]
             
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            • BigBri

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              I'd expect to see them game the system a bit and sit and plan to not cross 200k but sit at 199 to give another quarter before the phaseout starts.
               
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              • JoelH

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                #10 JoelH, Mar 20, 2017
                Last edited: Mar 21, 2017
                This Saturday (Mar 18), I got the following from my local Tesla store (I've been considering pulling the trigger on a Model S instead of waiting on the M3). Bold emphasis mine.

                Hi Joel,

                Are you still interested in the S 60 Trim?

                Tesla will be discontinuing the S 60 & 60D effective April 17th, and our $7,500 Federal Tax Credit is slated to expire in the next 2-3 months.

                How shall I help you moving forward?
                This contradicts what I've heard about how long the credit will be in effect. Just salesperson BS?
                 
              • JoelH

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                I responded to the email, pointing out (based on reports of how many cars they've sold) that it should be a few quarters until they got to 200,000. This was in the reply:

                While I can't speculate on any 3rd party analysis, what I can tell you is that I have heard we are less than a quarter of sales away from hitting the cap.
                Hmmmm....
                 
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                • KennethK

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                  This is a quote from today. https://electrek.co/2017/03/20/tesla-global-fleet-reaches-4-billion-electric-miles-ahead-model-3/

                  "Deliveries have been somewhat down and now flat on a quarter-to-quarter basis over the past 2 and the current quarter. Therefore, the fleet is not accelerating as quickly as it used to, but the company is expected to have passed the 200,000 vehicles mark between the Model S and X this quarter."

                  The 200,000 for the $7500 tax credit refers only to vehicles sold in the US. Tesla is approaching the 200,000th vehicle sold worldwide.
                   
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                  • MelindaV

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                    He is either full of crap or misunderstands what information he is getting.
                     
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                    • TrevP

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                      Man, there is so much confusion about this. Tesla is NOT close to the 200K cap of cars sold in the US. They're about to exceed 200K cars PRODUCED world-wide.

                      The biggest problem here is the severe lack of communications from Tesla, even internally I'm told from a friend who works there. The salespeople only have enough information to sell the cars and not much more.
                       
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                      • InElonWeTrust

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                        That sounds like a very misinformed employee or a typical retail salesman creating urgency to get you to act. I cannot imagine any 3rd party would be that far off, particularly since Tesla announces their sold units, at the end of each quarter. Plus if they were that close to the limit, don't you think we'd hear from Elon, not a lonely salesman at the local Tesla store? I'd forward to Tesla and let them review his/her tactics being it is very contrary to the Tesla business model. Or at the very least provide better training to their staff, as TrevP pointed out.
                         
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                        • DaveIrina

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                          I'm told by a Tesla dealer that the $7500 federal tax credit will be disappearing around late summer (2017) when Tesla delivers it's 200,000th car, do you believe that is true?

                          Also, that dealer told me the entire production run for model 3 scheduled for 2018 is booked up with orders from current Tesla owners, so if that is true I will not be getting a car until some time in 2019....., is there any truth in this?

                          Maybe it makes sense to do what the dealer suggested and buy one of the model S they have been using as demo cards, he said they are discounting them a fair amount ($7800 in the case of one car we were looking at), and those model S's retain free supercharging and the $7500 tax credit (assuming I buy it this summer). They also agreed to shut off autopilot in the configuration and deduct it from the price to get the price down for me

                          So now I"m confused, wait for the model 3 until who knows when......, or get the Model S (which will not get me the performance model and 338 mile range I was hoping for in the model 3.

                          Could there be a discount if one orders a completely loaded model 3 (all options)?

                          Your thoughts please?
                           
                        • MarkTX

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                          • MelindaV

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                            Welcome - (and they are not dealers, just Tesla employees)
                            all Federal tax credit estimates point to the 200,000 Tesla sold in the UNITED STATES to be around Q4 2017 or Q1 2018 +/-. Then, the credit remains available for the rest of that calendar quarter and the following quarter... then reduced to ½ for 2 quarters, than to a ¼ for 2 quarters. SO... there will be some form of the federal credit likely available thru 2018, with the full $7500 likely thru 2018 Q1 or Q2. Tesla is however approaching their 200,000th car sold worldwide, which does not matter to the credit.
                            As for the backlog, yeah, I would agree the current reservations will take thru most of 2018 to fill (not current owners - those are just a fraction of the reservations). A newly placed reservation likely would be looking at the end of 2018 at the soonest.
                            Be careful on an existing model. Are those 'Demo' cars sold as NEW? if it's considered a CPO you would not qualify for the credit, and if not a CPO, my understanding is any 'new' Tesla delivered after March 31st would not get the unlimited Supercharging (unlimited SCing needed to be ordered prior to 12/31/16 and take delivery by 3/31/17).
                            Personally, I'd rather wait and get the car I want, paying the extra for the options I want instead of paying the extra for a larger car without options, but YMMV.
                             
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                            • MelindaV

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                              slight correction - it remains at 100% for the remainder of the quarter the 200k is sold plus the next quarter (possibly up to 6 months if the 200Kth is sold on the first of a quarter) THEN it begins being reduced.
                               
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                              • MarkTX

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                                better, thanks
                                 

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