Used Tesla Model 3s on their official inventory are now reliably showing up under $25k, making them used tax credit eligible for those of you watching this as it came out!
On income requirements be sure to notice the line just below the income amounts. "You can use your modified AGI from the year you take delivery of the vehicle OR the year before.."! So if you are going to make too much this year but you were under the line last year you can still get the credit. A lot of people are not noticing that or don't mention it when talking to others about the credit.
I have already contacted my local dealer and told them that I will be buying a new EV in 2024 and depending upon the dealer rebating the Federal incentive for part of the down payment, if they want my business they need to participate otherwise I will travel to a dealer that does and they won't get my business at all. If enough of us contact dealers in advance they more likely they will commit to participating in the program early on. I also gave them the option to sell me what I want out of current inventory for $7500 under MSRP if they want my business before January.
this was sooooo very useful - quick question do you see/feel they are going to add more vehicles to get the tax credit? or what they currently have will be the same in 2024?
Would I qualify for the $4,000 Pre-owned Tax Credits if I trade in a vehicle to reduce the sale price below $25,000 or does trading in a vehicle not count for the overall sale price?
you do not get a refund from it it covers what you owe in taxes up to 7500 if you qualify so if you owe 2500 , that's all they will cover you do not get the leftover amount
FYI, the tax credit for leases does not save the customer $7500. The dealer takes the money and lowers the sticker price of the car by $7500, but the customer is not buying the car, so that doesn't mean much. The dealer then reduces the lease payments a bit, but by how much depends on a bunch of different factors, including the customer's credit, and even if you have perfect credit, you're going to save a small fraction of that $7500 on a 3-year lease.
Yes but since the primary factor in determining lease payment is the cap cost, reducing that price by $7500 will significantly reduce a monthly payment and save the lessee a considerable amount of money compared to purchasing the same vehicle without that tax credit.
What if I buy say a Chevy Bolt, and hate it, then trade it in on a Tesla before the end of the year, outside of the 30 day period the IRS considers a "return", do I get $15k in tax credits available to me? Let's assume all other factors I qualify for the tax credits, i.e. liability, income, etc.
A lot of VW dealerships near me arent budging on providing extra discounts for end of september/quarter sales even though they haven't moved inventory for ID4 in about 2-3 months. Whats the best way to approach this scenario for the best deal?
thats what im doing. im waiting to see what happens within the next 3 months. im just worried my crosstrek will lose so much value (currently +3500 equity) that any discounts will be negligible due to deteriorating value.@@sonnyonny4900
These depend a lot on where you live and your utility company. Use the Department of Energy link in the description to see incentives by state and by local that might pertain to home charger installation!
Looking at getting a model 3 but only would qualify for up to $2k in the credit as it is for 2023. By how you put it, I should wait until 2024 and it could be possible that I could get the full $7500 off the car if they allow the “dealer” to take the credit up front. Did I misunderstand or is that a real possibility?
In general yes but Model 3 status specifically in 2024 uncertain with battery sourcing; it may not qualify for full credit because of its battery being from China (CATL makes the cells). It will likely still get $3750 at least which will be more than your $2k tax break and you’ll get those savings at point of sale.
@@outofspecguide How will Tesla or dealers check how much tax liability you have at POS in 2024? Or anyone with income under $150k qualify for full amount? (For example, if I only have $1000 tax liability, in 2024, would I qualify for full $7500 at POS?)
What if you buy a qualifying car and sell it to buy another qualifying car in the same year, can you claim the credit on both in that year? Out of Spec Dave traded in one Tesla for another this year. Does he potentially get a credit for $15K?
In terms of vehicle eligibility for the federal ev tax credit for 2024, I didn't hear you mention this: "Beginning on January 1, 2024, a vehicle will be ineligible if any of the battery's components were sourced from a "foreign entity of concern," which includes China and Russia as of this writing, as well as Iran and North Korea". Isn't this why Tesla is warning that the Model 3 will likely not get the full $7500 credit beginning January 1, 2024? Were you aware of this??
Only the LFP based RWD version is likely not to qualify for the entire credit. Also I think the battery requirement doesn’t effect leased vehicles but I may be wrong on that point.
I'd be careful saying to get lower income people in EVs - you have to have a tax burden to qualify for the tax credit, i.e. make more than 75K etc. and starting in 2024 if you take the credit at the time of purchase, and then when you go to do your taxes you don't have the tax burden, if I'm not mistaken you will owe 7500 or what ever credit back. So people need to be careful etc. ( i commented before finishing the video, glad you get into this!!!) what is interesting is the 2024 changes with the batteries, and the issue with the standard battery being from china etc. I hope tesla doesn't play with prices and make the long range highland 3 more knowing many will get the 7500 credit etc. (many people don't qualify for the credit because they make too much money also)
Actually I read the IRS will not go after you if you dont pay the full 7500 in federal taxes. So theoretically you could be retired and not pay much in taxes and still get the full 7500 tax credit. Or even someone that makes very little in wages and still buy if you can get credit or have enough in the bank.
@@dennisgale8383 just read/heard the same thing. will be very interesting, i'm more interested in how much the standard y and 3 will get in 2024, does Tesla do something magical to ensure these both get the full 7500......
OH boy and we thought gouging was bad now just wait till next year. Dealers are going to have a field day adding market adjustments to offset the credit. They should have to sell the vehicles no more than MSRP with no add ons, good luck with that idea! We shall see no inventory now how will it get better next year.
Starting in 2024 you won't have be to if the dealer participates in the credit transfer so they can deduct $7500 from the sales price. We're doing the best we can to explain a complicated situation!
Max. You need to edit this video with the news today about EV tax credit starting next year. You will still need to be under the specified income limits but will not need any tax liability. This essentially will be a tax rebate at the point of sales. Edit: Now it look like all of the information going around about the 2024 tax credit is not to be the truth. Tax liability supposedly will matter. Let’s see how this all shakes out in the coming days.
I got a used ev & the dealership doesn't want to anything to repoet it. I ask they won't said was all me.!? They just don't get it. They are a Nissan Dealer
A lot of videos are not mentioning those married with children. Children significantly lower your tax liability which will make most not eligible for the full $7500
Used Tesla Model 3s on their official inventory are now reliably showing up under $25k, making them used tax credit eligible for those of you watching this as it came out!
You need to qualify that to 'In Your Local Area.' Because $29,000 for used Model3 and $41,000 for new is the pricing within 200 miles of Fremont, CA.
In Houston it's 23k lol@@tjs114
On income requirements be sure to notice the line just below the income amounts. "You can use your modified AGI from the year you take delivery of the vehicle OR the year before.."! So if you are going to make too much this year but you were under the line last year you can still get the credit. A lot of people are not noticing that or don't mention it when talking to others about the credit.
I have already contacted my local dealer and told them that I will be buying a new EV in 2024 and depending upon the dealer rebating the Federal incentive for part of the down payment, if they want my business they need to participate otherwise I will travel to a dealer that does and they won't get my business at all. If enough of us contact dealers in advance they more likely they will commit to participating in the program early on. I also gave them the option to sell me what I want out of current inventory for $7500 under MSRP if they want my business before January.
Nice video. Very clear and concise. Nice job!
this was sooooo very useful - quick question do you see/feel they are going to add more vehicles to get the tax credit? or what they currently have will be the same in 2024?
Would I qualify for the $4,000 Pre-owned Tax Credits if I trade in a vehicle to reduce the sale price below $25,000 or does trading in a vehicle not count for the overall sale price?
Great video! Thanks for all the information.
Will Tesla Model Y have the $7500 EV tax credit in 2024, using the new mineral and assembly requirements for the batteries?
Many brands only pass the full 7500 via the lease. On cheaper models they pass on a smaller rebate.
how many times can we get the $7500 tax credit? if I buy multiple EV in the same year, can I get both tax credit?
I wana know this !!! I want the honda prologue and a ford lighting 🤣
you do not get a refund from it it covers what you owe in taxes up to 7500 if you qualify so if you owe 2500 , that's all they will cover you do not get the leftover amount
FYI, the tax credit for leases does not save the customer $7500. The dealer takes the money and lowers the sticker price of the car by $7500, but the customer is not buying the car, so that doesn't mean much. The dealer then reduces the lease payments a bit, but by how much depends on a bunch of different factors, including the customer's credit, and even if you have perfect credit, you're going to save a small fraction of that $7500 on a 3-year lease.
Many offer almost immediate lease buyouts.
Yes but since the primary factor in determining lease payment is the cap cost, reducing that price by $7500 will significantly reduce a monthly payment and save the lessee a considerable amount of money compared to purchasing the same vehicle without that tax credit.
If I purchase a left over, brand new 2023 Bolt EV or EUV in 2024, will I receive the full $7500.00 tax credit?
What if I buy say a Chevy Bolt, and hate it, then trade it in on a Tesla before the end of the year, outside of the 30 day period the IRS considers a "return", do I get $15k in tax credits available to me? Let's assume all other factors I qualify for the tax credits, i.e. liability, income, etc.
A lot of VW dealerships near me arent budging on providing extra discounts for end of september/quarter sales even though they haven't moved inventory for ID4 in about 2-3 months. Whats the best way to approach this scenario for the best deal?
Refuse to buy until they're ready to deal
thats what im doing. im waiting to see what happens within the next 3 months. im just worried my crosstrek will lose so much value (currently +3500 equity) that any discounts will be negligible due to deteriorating value.@@sonnyonny4900
Above! And also, wait until the end of the month, and end of the year - they’ll be singing a whole different tune to hit their quota
Don’t buy a shitty VW. Get Tesla the king 🤴🏼 of electric vehicles
@@walterwhite1 I don't support pedo nazis
Tftc, wish somebody had a guide like this out when I was shopping so I didn't have to do the research myself
So if your withholding was about $15,000 and was expecting refund of $2,000, if you qualify for EV credit of $7,500 you'll get $9,500 total refund?
Thanks for this! Do you have another video for home charger incentives?
These depend a lot on where you live and your utility company. Use the Department of Energy link in the description to see incentives by state and by local that might pertain to home charger installation!
The trouble with leasing is the interest rates are super high. That will eat up the tax credit quickly for those would pay cash to buy a vechicle..
Very informative, well presented
Great info! Thanks!
Thank you 🎉🎉🎉❤❤❤
Looking at getting a model 3 but only would qualify for up to $2k in the credit as it is for 2023. By how you put it, I should wait until 2024 and it could be possible that I could get the full $7500 off the car if they allow the “dealer” to take the credit up front. Did I misunderstand or is that a real possibility?
In general yes but Model 3 status specifically in 2024 uncertain with battery sourcing; it may not qualify for full credit because of its battery being from China (CATL makes the cells). It will likely still get $3750 at least which will be more than your $2k tax break and you’ll get those savings at point of sale.
@@outofspecguide How will Tesla or dealers check how much tax liability you have at POS in 2024? Or anyone with income under $150k qualify for full amount? (For example, if I only have $1000 tax liability, in 2024, would I qualify for full $7500 at POS?)
What if you buy a qualifying car and sell it to buy another qualifying car in the same year, can you claim the credit on both in that year? Out of Spec Dave traded in one Tesla for another this year. Does he potentially get a credit for $15K?
Individuals can only apply for the federal tax credit once every three years.
Thanks for the clarification@@Paul-lp7zp
In terms of vehicle eligibility for the federal ev tax credit for 2024, I didn't hear you mention this: "Beginning on January 1, 2024, a vehicle will be ineligible if any of the battery's components were sourced from a "foreign entity of concern," which includes China and Russia as of this writing, as well as Iran and North Korea". Isn't this why Tesla is warning that the Model 3 will likely not get the full $7500 credit beginning January 1, 2024? Were you aware of this??
Only the LFP based RWD version is likely not to qualify for the entire credit. Also I think the battery requirement doesn’t effect leased vehicles but I may be wrong on that point.
Model S is not eligible
True! The Model 3, Y, and very base X are. S is not because it's a sedan so it's price capped at $55k.
Great info!
I leased an Ioniq6 AWD Limited and got the $7,500 despite being over $55,000 MSRP.
I'd be careful saying to get lower income people in EVs - you have to have a tax burden to qualify for the tax credit, i.e. make more than 75K etc.
and starting in 2024 if you take the credit at the time of purchase, and then when you go to do your taxes you don't have the tax burden, if I'm not mistaken you will owe 7500 or what ever credit back. So people need to be careful etc. ( i commented before finishing the video, glad you get into this!!!)
what is interesting is the 2024 changes with the batteries, and the issue with the standard battery being from china etc.
I hope tesla doesn't play with prices and make the long range highland 3 more knowing many will get the 7500 credit etc.
(many people don't qualify for the credit because they make too much money also)
$70,000 income is at 22% federal tax.
Actually I read the IRS will not go after you if you dont pay the full 7500 in federal taxes. So theoretically you could be retired and not pay much in taxes and still get the full 7500 tax credit. Or even someone that makes very little in wages and still buy if you can get credit or have enough in the bank.
@@dennisgale8383 just read/heard the same thing. will be very interesting, i'm more interested in how much the standard y and 3 will get in 2024, does Tesla do something magical to ensure these both get the full 7500......
i cant believe California is canceling their incentive program. us poors are SOL now LOL
OH boy and we thought gouging was bad now just wait till next year. Dealers are going to have a field day adding market adjustments to offset the credit. They should have to sell the vehicles no more than MSRP with no add ons, good luck with that idea! We shall see no inventory now how will it get better next year.
so, now I dont need to be responsible for 7500 in tax liabilities? This is very confusing
Starting in 2024 you won't have be to if the dealer participates in the credit transfer so they can deduct $7500 from the sales price. We're doing the best we can to explain a complicated situation!
Ok there - you corrected it
Max.
You need to edit this video with the news today about EV tax credit starting next year. You will still need to be under the specified income limits but will not need any tax liability. This essentially will be a tax rebate at the point of sales.
Edit:
Now it look like all of the information going around about the 2024 tax credit is not to be the truth.
Tax liability supposedly will matter.
Let’s see how this all shakes out in the coming days.
I got a used ev & the dealership doesn't want to anything to repoet it. I ask they won't said was all me.!? They just don't get it. They are a Nissan Dealer
A lot of videos are not mentioning those married with children. Children significantly lower your tax liability which will make most not eligible for the full $7500
Wait - Tesla model S does not qualify
I play my taxes to break even and try not to owe any! So this bennefit would not benefit me, as I understand it!
Not true. Talk to your CPA.
welp sounds like as long as the economy doesnt collapse in the next 3 months I'm very likely to buy a EV
Very informative. I feel like I learned so much and I found everything I was previously searching for on Google all in one video