My fear is dealership markups will run out of control! It’s bad enough now.

@stephenbateman7254

9 ай бұрын

$5k minimum dealer markup on all $7500 eligible vehicles

@zahf6484

9 ай бұрын

I am annoyed by the markups on many gas cars I love but when it comes to EV’s, you shouldn’t be buying anything other than a Tesla. No markups would be just one of the many reasons.

@shdmd2118

8 ай бұрын

Yes , they can and they will. They will be able to show their investors their margins have increased Especially Tesla….

@stevens9419

7 ай бұрын

That’s why tesla in winning and regular dealerships will collapse

Bottom line is if the dealer has to give you the tax credit, they will increase the msrp

The tax credit is not refundable, but it is transferable. This may seem like semantics but you run into this all of the time with tax law, or any law for that matter. The whole idea of transferable renewable energy credits was really spurred on by the inflation reduction act. These proposed regulations are keeping in line with the spirit of the other credits under the IRA. Which allow Companies to transfer their credit to a 3rd party if they lack liability, or for entities which pay no income tax.

That's a bummer if you can't use your previous tax year's AGI if you want to take credit at point of sale. I know that's not super common but this will impact my plans for next year.

It sounds so great! I'm not sure how much we can trust, in the end, not having to come up with the difference. would be hard with my low income.

cash down on the hood is a game changer!

@mrdev5281

8 ай бұрын

May NOT. Tesla is not a Dealer.

@mikehildebrand425

6 ай бұрын

Dealers do not like cash. Private parties are a yes

I’m glad that the incentive wasn’t eligible for recapture from the IRS when we leased our 2021 ID4. $7,500 right off the cost of the vehicle as a cap cost reduction. Was fantastic.

@kenyattaclay7666

9 ай бұрын

Leasing is a whole different animal. Because you weren't actually buying the car and a third party company was the whole recapture thing doesn't even come into play. For example, if you were to buy an EV6 let's say because it's not made in the US nor have the batteries been approved it isn't eligible for the tax credit. However if you lease an EV6 you can get $7,500 off of the capital cost because companies are exempt from those requirements. The exact same thing holds true if you decide to lease an EV that does qualify for the full $7,500 if you were to buy it.

Now I'M confused again. How do we find the latest video? In 2024, at the end of January, do get the elective transfer option, but does the IRS do a recapture? Thinking of the students and retirees with a low income.

Question, If I buy one this year, 2023, can I buy it and use the tax credit on my business tax liability? Or is it only for individuals?

@2:16 If you're a student without enough income, pay off your student loans before spending money buying a car. I believe the 20% is an underpayment penalty issued for whenever you end up owing more than several hundred dollars at the end of the year or at any quarterly filing (estimated payments) before the end of the year.

Thanks, Max! I really hope this loophole is closed and we can realize the full tax credit as fully refundable at point of sale. Any possibility the used tax credit might be opened up to private sellers of used EVs? Do you think used EV tax credit will drive prices further down on private market as well?

I would be shocked if they tried to claw the credit back especially based on one of the first things you see on the proposed legislation is the following: The guidance would clarify that eligible consumers may transfer the full value of the new or previously owned vehicle credit regardless of their individual tax liability. What do you think is in conflict of that because that seems relatively straightforward to me? I do hope they keep the base model Tesla because that allows lower-income people myself included to get a great EV at a reasonable price

A “used vehicle under $25k” does not answer dilemma I am getting from a dealer. He says it is the “asking” price as original chosen by the dealer, and tax credit is not controlled by the final OTD purchase price. So a dealers sale price posted of $25,001 would NOT qualify for getting used clean vehicle tax credit, even if the dealer knocks off one dollar. 1:54 Dealer is adamant despite me sending copy of federal law/notices.

Please address this question is TESLA A "Dealer" ? I THINK NOT. I think they are the Mnftr. so will they be applying the credit at sale. Per the wording prob not.

My understanding of it, is that the IRS won't necessarily go after you for this tax credit if you don't make enough to owe $7500 Federal taxes. If interpreted correctly, this will be great news for fixed and lower income people who would benefit immensely more from an EV's lower operating costs and fewer maintenance needed compared to a gas car. I think the IRS will only go after you and hit you with that 20% penalty, IF you make more than the income limit cap, AND you took the tax credit at the time of sale. If you didn't take the credit because you know you'll make too much, there's nothing to penalize you with at tax time.

The IRS will stick with the law and recapture any excess credit. They will have all the info, their computers will spit out a notice including interest and penalty

@kenyattaclay7666

9 ай бұрын

They have already specifically stated they won't; it's on their website.

What will Tesla be doing?

Uncle Sam giveth, and Uncle Sam taketh away. They may say they’re not going to come after the excess refund of liability but a year from now they can change their mind because it’s written in the language of the law. They are simply choosing not to enforce a law.

So if you don’t owe much tax then you only get what you pay? Do you don’t get the 7500 off? I am dumb on this topic but I live in Colorado and want a Tesla. If I could get all the money in tax rebate I could afford it.

@outofspecguide

9 ай бұрын

That's the way the current credit works-only creditable up to the amount you pay if it's less than $7,500. The upcoming point of sale one is said by the IRS to be refundable and therefore, fully works as a credit off of the vehicle price. So long as you don't make above the income cap! We'll have to see actual details play out next year when it goes into effect.

I am strongly in favor of the full tax credit being made to everyone with income under the stated guidelines

Offering the credit at point of sale is a step in the right direction assuming the overall mission is to get more EV’s on the road. Vehicle requirements for materials an assembly being U.S. focused is logical given the U.S. government is underwriting this. Income caps for eligibility seem counter to the mission. Understandably unpopular stance but I see no logical reason to bar anyone from this incentive as long as they’re a U.S. taxpayer. Unclear on the stated purpose of income limits as it relates to the assumed mission of increasing EV adoption. Keeping with the vehicle focused restrictions which already include eligibility limitations for EV’s above certain price thresholds serves to screen individuals at the high end of the market who actually have the expendable capital for high end purchases. Setting an arbitrary AGI level doesn’t account for people who may live in high cost of living areas or have family situations (Alimony, child support, etc.) that turn 150K income to a 70K income very fast. The choice to make an EV purchase for folks like this would be heavily swayed by a potential $7500.00 savings as they would also likely choose vehicles at a lower price.

I foresee many people taking advantage of this. Doesn't seem like the IRS is going to police this very well or at all.

@zahf6484

9 ай бұрын

They’re trying to make it more available for everyone. It’s not a loophole they are trying to police.

Tftc